Techno-economic assessment of electric vehicles in India: evaluating baas models, ice parity, and next-generation platforms

Abstract

The rapid electrification of road transport presents a critical opportunity for decarbonization and energy security in emerging economies. This paper presents a comprehensive techno-economic assessment of passenger electric vehicles (EVs) in the India market, with emphasis on cost parity with internal combustion engine (ICE) vehicles, the viability of Battery-as-a-Service (BaaS) models, and the performance of next-generation EV platforms. A detailed comparison is conducted using representative Indian EV models and equivalent ICE vehicles, incorporating real-world parameters such as battery capacity, driving range, electricity and fuel tariffs, maintenance cost, and battery degradation. The study further contextualizes India’s EV landscape through a comparative market and technology review with global leaders, particularly the China EV ecosystem.
A mathematical cost model is developed to evaluate the total cost of ownership (TCO) and per-kilometer running cost of EVs and ICE vehicles under multiple usage scenarios. Results indicate that while EVs exhibit higher upfront acquisition cost (15–35% premium), their operating cost is 55–70% lower than comparable ICE vehicles under prevailing Indian electricity tariffs. When BaaS schemes are introduced, the initial purchase cost of EVs reduces by approximately 25–30%, significantly improving buyer affordability and payback period. Break-even analysis reveals that ICE parity is typically achieved within 3–5 years for private users with annual driving distances exceeding 12,000 km.
The findings demonstrate that next-generation EV platforms, characterized by higher energy density batteries and dedicated skateboard architectures, further enhance efficiency and lifecycle economics. The study also highlights the systemic impact of EV adoption on power systems, reinforcing the importance of coordinated charging and demand-side management strategies. The proposed framework provides policymakers, manufacturers, and consumers with a quantitative basis for evaluating EV adoption in the Indian context and supports the role of innovative ownership models such as BaaS in accelerating market penetration.