EV uses electricity as a fuel and converts it into kinetic energy, which is required for running the vehicle. The electricity can be extracted either from a battery or renewable sources of energy. EV has many advantages such as high performance, high response, no noise, low maintenance and driving cost, highly safe, and there is no need of fuel tanks, carburetor, and smog controllers in them. EVs are not new, although they were around us since the 1800 s. At that time out of 4200 vehicles, 38% were EVs but due to low cost gasoline fuel, evolution, and development of electric starter for gasoline engine, the interest in EV declined. Gasoline vehicles are easy to operate due to electric starter which curb the need for hand crank for starting the engine and due to which most of the electric car manufacturer stopped their production [1]. EV has come into limelight due to the problem of environmental hazards related to the conventional vehicle. The first ever made EV was developed by 'Anyos Jedlik' in 1828. In early 1980s, EV activity again rose but with the development of plug-in hybrid EV (PHEV) and hybrid electric vehicles (HEV), the interest in pure EV again decline. In 2003, T (an automobile company) launched its first pure EV "Tesla roadster." Tesla overcome all the challenges of EV such as they use lithium-ion battery to power the vehicles, and the problem of short range is also overcome to some extent. Some issues related to EV development are: profit determination becomes uncertain considering the high capital cost and uncertainties in policies related to EV production. The government has made various comments about their thoughts for EV but nothing has been put down to policies. This discourages the investment industries. Cost of the EV is also an issue of concern [2]. There is a need for lowering the operating cost of the EVs by optimal usage of the renewable energy resource with the help of a microgrid. A