30% EV share may cut oil bill by Rs 1 trn, but hurt tax revenue too: Study

India could save on crude oil imports worth over Rs 1,07,566 crore ($14.1 billion) a year if electric vehicles (EVs) were to garner 30 per cent share of new vehicle sales by 2030, according to a study released today by the Council on Energy, Environment and Water (CEEW). But this transition could also give rise to a combined annual value-added loss in the oil and the automobile sector of about Rs 2 trillion ($25 billion).

In addition, the central and state governments would lose over Rs 1 trillion in tax revenue annually from lower sales of petrol and diesel creating a need for the central and state governments reducing their dependence on revenues linked to petroleum consumption and diversify the revenue pool with increasing EV penetration.