An all-round comparison
Petrol and diesel prices have been skyrocketing. There are states in India where the petrol price has crossed Rs. 100 and diesel rates are almost hitting a century too. Fuel that was earlier hurting the environment will soon begin hurting our pockets as well.
In such a scenario, there are talks and debates on investment in electric vehicles. Today, electric cars are 25-30% more expensive than other cars and this is making consumers contemplate before making the purchase decision.
We will examine the actual cost it entails as this will help one make an informed decision that will be beneficial in helping make a verdict.
Government Subsidies
Electric cars are still not as affordable in India and to give people a push, the Indian government has been gradually taking steps to accelerate EV adoption in the country. One of the key measures taken is the rolling out of various subsidies as well as incentives to not only the manufacturers but also the car buyers. These sometimes range up to Rs. 1.5 lakh. A buyer can even receive tax benefits under Section 80EEB for loan repayments on their EV loan up to Rs. 1.5 lakh. These subsidies vary according to the states and if you live in a city like Mumbai, thanks to the government subsidies, you can save as much as Rs 5 lakh on an electric car. This automatically levels your cost!
Operating cost
The operating cost is one major advantage when it comes to EVs Vs petrol/diesel cars. Since EVs use electricity to charge their batteries, and domestic power tariffs range from Rs 8-10 per unit, the monthly running cost is a fraction of the cost of petrol or diesel cars. Also, electricity prices do not go up in the same manner as fuel prices, and history is a witness to this.
The running cost of EVs, therefore, works out to less than Rs 1 per km. This is Rs 9 for petrol and Rs 6 for diesel, if not more. The power rate may vary for various states, but it will still be lower compared with petrol or diesel cost. So, once you factor in the operating cost, the math appears drastically different.
Long-term cost
The fuel costs for the internal combustion engine-based (ICE) vehicles are at 3 to 5 times greater than for the EV. Even if we assume that the petrol and diesel rates remain steady in the country, the price difference between the on-road price of both the vehicles is expected to be made up within 1,25,000 kilometers (approximately 10 years, assuming an average of 10,000 km of driving annually). So, after about 1,25,000 kilometers, your EV would cost five times lesser than a petrol/diesel car to operate.
Cost of Spares
The reduced cost of spares is another highlight of EVs. EVs have far fewer moving parts than normal ICE vehicles. Since there are fewer moving parts, it is natural that there is lesser wear and tear. This boils down to the fact that the maintenance costs for an EV are only a fraction of a typical ICE vehicle over an 8–10-year span. Tata estimates Rs 25,000 in maintenance for its electric cars and that is over five years, a petrol or diesel variant will easily cost 10,000 or more a year. One needs to understand that with electric vehicles, the cost efficiency becomes comparatively better as time goes on.
The question is whether you should opt for an electric vehicle on your next purchase. One thing is sure – if you decide to, then you are helping the environment, the market and even making yourself future-ready! Throughout the use, an EV's cheaper fuel and service make them progressively more practical. The more kilometers you drive, the more cost-efficient an EV becomes. SO, don't let short-term cost woes impact your decision.