Bookmark and Share

Second And Third Order Effects Of The Coming Electric Vehicle Autonomous Vehicle Revolution In India

0 Comment

The Advent of EVs in India

This post is inspired by a recent article by Benedict Evans on the second order effects in Electric Vehicle Autonomous Vehicle Revolution USA. While this autonomous electric vehicle technology is probably 15-20 years away in India, the change is inevitable and there is no stopping it. Just like Uber took over our cities and changed the way we commute, self-driving cars will change our lives and the economy in unforeseen ways. It will also have major social and cultural impact just as the evolution of cars. Here are some ways that I see the Indian economy and society changing:

1) Lower death rate and motor insurance extinction – Indian roads are probably the most unsafe in the world with millions of deaths occurring every year due to rash and irresponsible driving. The recent Supreme Court directive to stop liquor sales from all establishments 500 meters near the highways caused major disruptions in the entire hospitality industry. Drunken driving is one of the biggest causes of death and it will disappear in 20 years. You can easily sip your Kingfisher in the self-driving cars without causing any harm. Insurance rates will drop drastically and motor insurance will become extinct.

2) No more parking problems and GDP growth – Indian markets are impossible to navigate, as cars are haphazardly parked everywhere and “no parking” signs are more for show than for actual use. Given the high population density of Indian cities, this will be a major boon. It will greatly increase the standard of living and reduce super high commercial real estate prices. Real estate is one of the biggest costs for Indian enterprises and any correction will have a major positive impact on the economy in my view.

toyota prius

Also, read the list of top running electric vehicles in India.

3) Reduction in oil imports and major foreign exchange savings – India imports massive amounts of crude oil making it the most expensive item in the import basket. This will gradually disappear as India is much more well-endowed in electricity resources such as coal and solar power. This will consecutively lead to huge savings and a positive GDP impact.

4) Better and easier transportation, lower expenditure on roads – If you travel on Indian highways, you will find them cluttered with really old, ramshackle diesel trucks moving at a snails speed and spewing vicious fumes that contribute majorly towards India’s air pollution. The drivers are underpaid and ill-trained sometimes clogging all 2-3 lanes of the highway and making the rest of the traffic also crawl. The need for more roads will disappear, traffic will see a large increase in speed and huge fuel/electricity savings.

5) Less corruption and more money going to people’s pocket – The large Indian oil PSUs are major dens of corruption. These large oil corporations are also highly inefficient and their associated gas station franchises are also similarly corrupt. Adulterated fuel is more common in India than pure fuel as station owners frequently mix lower priced lower quality oil byproducts to increase their profit margin. With the oil economy disappearing and electricity being used, corruption should also hopefully reduce. This will lead to more money going into people’s pockets rather than corrupt bureaucrats and politicians.

You might also like to read about free EV charging stations in Delhi.

6) Unemployment increase and lower low skilled jobs – Driving cars and repairing cars is a massive industry in India. Given the low wages, a huge number of people are employed in driving cars. Given the cheap cost of a driver (around $200 a month), many people in India employ chauffeurs as compared to the developed countries. Also, there are a massive number of auto repair shops spread all over the country. These things will become a relic of the past, as electric vehicles require much lesser maintenance and could easily drive by themselves to company-owned repair outlets. Even a large number of people employed at the petrol stations will lose their jobs.

There are many other things that will happen and which no one can predict as of now. The only thing which is certain is that there will be a massive change in the whole transportation industry and human lives. I don’t know whether the government has thought of the repercussions and prepared for the day which will come sooner than what we think.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

No Responses so far | Have Your Say!