The popularity and sales of
electric cars
in India is heading upwards presently as the base is quite small to start with. Each year automotive manufacturers are coming up with new
battery-operated vehicles
. In 2023, the
Indian automotive market
witnessed multiple electric vehicle launches and the year 2024 too will witness the launch and unveiling of various electric vehicles.
The
charging infrastructure
is also being developed slowly and some people are slowly and steadily starting to accept
EVs
as a replacement for ICE cars.
The cost of buying an electric car is definitely higher than a petrol car and one of the major reasons for this price difference is the battery pack. Nonetheless, Indian automakers have started offering huge discounts on their electric cars as battery costs sseem to be heading South. For example,
Tata Motors
recently cut down the prices of the Nexon EV by up to Rs 1.2 lakh while the Tiago EV got a reduction of up to Rs 70,000. Similarly, MG Motor India too offered discounts of up to 1 lakh on the ZS EV and Comet EV. Also, as demand for EVs increases, the cost of buying one will further come down in the near future.
Presently, one has to pay a premium of 20-30 percent over a similar petrol vehicle while buying an electric car. Comparing the cost of a petrol and electric car, the price for the top-of-the-line Tata Nexon petrol costs Rs 15.6 lakh and the price for the top-of-the-line Nexon EV is Rs 19.2 lakh (both prices ex-showroom). Talking about the Mahindra XUV, the price for the top-of-the-line petrol XUV 300 is Rs 13.5 lakh and the price for the top-of-the-line all-electric XUV 400 is Rs 17.7 lakh (both prices Ex-showroom). Similarly, the top-of-the-line MG ZS EV costs Rs 25 lakh and the price for the top-of-the-line MG Astor costs Rs 18 lakh (both prices Ex-showroom).
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Talking about the cost of running, one will spend somewhere between Rs 7-8 Rs per kilometre in a small petrol car. In an EV, it costs approximately Rs 1 to 1.5 per kilometre. With an average running of 1500 Km per month with 12 Km of efficiency per litre and a petrol cost of Rs 97 per litre, you will spend around Rs 12,000. In an electric car, you will spend just around Rs 2300 for the same distance, translating into a saving of around Rs 10,000 per month.
Taking another example, if you drive your electric car for 10,000 kilometres for every year for the next 6 years, you will spend around Rs 1 lakh. Talking about the cost of running a petrol car, you will end up spending somewhere between Rs 5.5 to 6 lakhs in the same duration. This shows that EVs are easy in your pockets in the long run.
So how much time will it take to make up for the initial premium with savings in running costs? If the electric car is about Rs 5 lakh more expensive than the petrol counterpart, it will take you about five years to make up for the initial premium with savings in running costs if you drive your electric car for 10,000 kilometres for every year for the next 6 years. Running more kilometres in a year will only let you recover the premium quicker.
Another bonus is the cost of maintenance of electric cars is lesser than the ICE car. Electric cars have fewer moving parts compared to petrol cars. This makes them less complicated to service and also reduces the cost of maintenance. Yearly maintenance of an EV can be as low as 1/4 th of the cost of a petrol car. That said, the charging infrastructure continues to be a major area of improvement as the present state is not enough to propel growth of EVs. While most people depend on home charging for their EVs, if they are to become mass-market then people need to be cinvinced that having an EV as a first or the only car in the home isn't going to be a limitation. The current state of India's EV charging infrastructure is far from that but considering the focus of the government and business potential for private companies, we could witness a big change in a short time.
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FAQs
Talking about the cost of running, one will spend somewhere between Rs 7-8 Rs per kilometre in a small petrol car. In an EV, it costs approximately Rs 1 to 1.5 per kilometre.
Will EV cars get cheaper in India? ›
NEW DELHI -- Despite the unprecedented rise in demand for electric vehicles in India and a raft of homegrown players rushing in to fill the space, EV prices in the country are unlikely to come down anytime soon as the bulk of their components, particularly batteries, are still imported.
Are EVs cheaper over time? ›
While this is a complicated question that has befuddled car shoppers for years, in most cases, an EV will indeed be cheaper in the long run.
Are EVs going to get cheaper? ›
“We're going to continue to see price cuts or discounts just because there's inventory and [dealers are] really trying to get these sold,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. That's good news for Americans in the market for a new car who might be considering going electric.
Which is better EV or petrol in India? ›
Fuel Cost. Running costs present a clear advantage for electric cars. They're cheaper to operate because they use electricity, which is generally more affordable than gasoline. Electric cars are also more efficient at converting energy into motion.
Is EV really cheaper than gas? ›
Their study, published in the Journal of Industrial Ecology, found that gasoline vehicles are generally less expensive to purchase, but electric vehicles are less expensive over time through lower maintenance, repair and fuel costs.
Why EV is not growing in India? ›
So, what's stopping Indians from buying EVs? Going by the findings of a pre-Budget ET Online survey, the answer is the lack of charging infrastructure. In the survey, 51.7 per cent of the respondents said that in order to expedite EV adoption in India the government must improve charging infrastructure.
Why not to buy electric car in India? ›
Electric cars come with significantly higher ticker prices compared to their ICE counterparts. The electric cars are more technologically advanced than their ICE versions, while the relatively modern technology is costlier to develop. This results in a higher cost of acquisition for the electric cars.
What is the cost of running EV in India? ›
EV: And, with a battery capacity of 30.2 kilo-watt-hour, at the peak tariff of Rs 8 per kilo-watt-hour in Delhi, it will cost under Rs 250 to charge it fully and then cost approximately 80 paise per kilometer to run the vehicle. So, the EV will cost a total of Rs 14,400 per annum to charge.
Why are EVs so overpriced? ›
Battery Technology
One of the largest costs associated with EVs is their lithium-ion batteries. These batteries are not just regular batteries; they're advanced pieces of tech that store a lot of energy to run the car for longer distances.
On average, electric cars have a five-year depreciation rate of 49.1%, the study found. That's compared to an overall industry average of a 38.8% five-year depreciation rate. As the electric vehicle market matures, the automotive industry is still working to understand the depreciation formula for battery-powered cars.
Do EV last longer than gas? ›
When it comes strictly down to numbers of miles and years, an EV will likely outlast an internal combustion engine (ICE) vehicle. With regular use, the average lifespan of a gas vehicle is 150,000 miles or eight years, and EVs can last up to 200,000 miles, or about 12 years.
Why are people not buying EVs? ›
The most obvious reason for consumer disenchantment is the hassle of charging EVs. Few drivers are willing to plan their lives around finding a charging station and waiting around for their battery to top up. During the nation's recent Arctic blast, motorists found that getting a full charge took even longer.
Will electric cars get cheaper in 5 years? ›
EVs may be cheaper in 2024
Considering the current trends shaping electric vehicle prices, EVs will likely continue to get cheaper into 2024. Battery costs, tax incentives, and competition will contribute. But there will likely be exceptions.
Will cars get cheaper in 2024? ›
New car prices will likely fall in 2024
A separate report from Edmunds on Wednesday found early signs of improvement in auto loan financing conditions. The firm's data shows an increase in low-interest-rate loans with longer terms in the past six month.
How much does an EV add to electric bill in India? ›
A household consuming 500 units of electricity pays 1,735 as a bi-monthly electricity bill. And adding 1 unit a day for charging vehicles will mean a consumption of 560 units. A change in tariff is applied and the bill rises to 2,430, 695 more.
Is it worth buying an EV in India? ›
Lower fuel costs: EVs are much more efficient than internal combustion engine (ICE) vehicles and require less energy to operate, resulting in lower fuel costs for drivers. Lower maintenance costs: EVs have fewer moving parts than ICE vehicles, which means they require less maintenance and are less likely to break down.
Do electric cars increase your electric bill in India? ›
Originally Answered: If you own an electric car and charge it at your house, will there be a noticeable increase in your electric bill? You betcha there will be a noticeable increase in your electric bill. However figure it this way, It takes about 70 Kw to charge our car at 80%.
How much does it cost to charge an electric car in India? ›
This means that charging your electric car at a public station could cost you between Rs 100 and Rs 200, and charging at home may range from Rs 180 to Rs 500. The time needed to charge an electric car depends on factors like the car model, battery size, and the charging speed of the point.
