Automobile sector is going through a vast nature of changes from the start of 2015. The new norms of BS6 in India and updated Euro norms have increased difficulties in the business of automobile sector. Nearly 25% cost increase is seen to fulfill the requirements of an BS6 engine. Many of the automotive giants have stopped the manufacturing of diesel engines and many are planning to do so in future. While the crude oil market is not so preferable by government authorities, a new technology like Lithium Batteries supporting to E-Vehicles is seen in last few years. The cost per kilometre of the vehicles have made an vital impact on public. While the traditional vehicles are softly getting shifted over electric ones, the new technology also lacks at some points. Chemistry is playing an important role in the automobile sector. The use of different kinds of fuel has made an obstacle to traditional fuel companies. This paper discuss the design, advantage, disadvantage and future scope of electric vehicles.