The price of crude oil is all-time low but the cost of petrol and diesel in India is all-time high. Due to various political reasons and abnormal tax rules, Indian consumers suffer from inflated fuel costs.
CNG was a viable alternative but that is also getting out of reach as the CNG price is touching ₹100 per KG in many cities. Remember, CNG vehicles compromise on power.
The new trend is EV vehicles that can save up to 85-90% of your fuel cost and it won’t hurt the vehicle performance. However, the initial vehicle cost will be very high compared to an ICE engine vehicle.
So, it’s a trade-off between EV and ICE ( Internal Combustion Engine) vehicles. It’s wise to find out the cost of running an electric car vs an ICE car so that we can make an informed decision.
You can also use this calculator to find out how much money you can save if you switch to an electric vehicle.
Cost Of Running An Electric Car Vs ICE Car (Petrol)
We will take the example of Tata Punch Electric and Tata Punch ICE versions for this comparison so that it’s easy for you to understand. We have considered the top-end model of the vehicle for this comparison
| Description | Tata Punch EV | Tata Punch Petrol Automatic |
|---|---|---|
| Range / Mileage | 315 | 15 KM / Liter |
| Battery Capacity | 35 kWh | NA |
| Daily Running | 50 KM | 50 KM |
| Battery Full Charge Cost @₹ 7 | 35X7= ₹ 245 | NA |
| Petrol prices in Hyderabad | NA | 109 |
| Cost Per KM | 245/315= ₹ 0.77 | 109/15= ₹ 7.22 |
| Savings Per KM | 7.22-0.77= ₹ 6.45 | 0 |
| Daily Savings | 6.45X50= ₹ 322.5 | 0 |
| Monthly Savings | 322.5X30= ₹ 9675 | 0 |
You Can Save Up To 90% Of Fuel Cost If You Go For An Electric Vehicle Over The Petrol Version
As you can see from the above table if you opt for an Electric Vehicle over a petrol vehicle, you can save close to 89% of your fuel cost in the best-case scenario. However, there is a catch. The price of EV vehicles is around 40% more than the petrol version. So does your extra saving per KM justify the extra premium that pay for EV? Let’s find out that.
| Description | Tata Punch EV | Tata Punch Petrol Automatic |
|---|---|---|
| Price | ₹1549000 | ₹1019000 |
| Price Difference | NA | 1549000-1019000= ₹53000 |
| Yearly Saving On Fuels For EV | 9675X12=₹ 116100 |
So the time required to recover the extra money that you spend on Tata Punch Electric will be 530000/116100 = 4.56 years. That means you need around 5 years to offset the price of EV over any ICE version.
You Will Need Around 5 Years To Recover The Extra Money That You Spend On EV Over ICE (Petrol) Car
Cost Of Running An Electric Car Vs ICE Car (Diesel)
We will take the example of Tata Nexon Electric and Tata Nexon ICE version (Diesel) for this comparison so that it’s easy for you to understand. We have considered the top-end model of the vehicle for this comparison
| Description | Tata Nexon EV | Tata Nexon Diesel Automatic |
|---|---|---|
| Range / Mileage | 400 | 20 KM / Liter |
| Battery Capacity | 40.5 kWh | NA |
| Daily Running | 50 KM | 50 KM |
| Battery Full Charge Cost @₹ 7 | 40.5X7= ₹ 283 | NA |
| Diesel Price In Hyderabad | NA | 95 |
| Cost Per KM | 283/400= ₹ 0.70 | 95/20= ₹ 4.75 |
| Savings Per KM | 4.75-0.70= ₹ 4.05 | 0 |
| Daily Savings | 4.05X50= ₹ 202 | 0 |
| Monthly Savings | 202X30= ₹ 6075 | 0 |
You Can Save Up To 85% Of Fuel Cost If You Go For An Electric Vehicle Over The Petrol Version
As you can see from the above table if you opt for an Electric Vehicle over a diesel vehicle, you can save close to 85% of your fuel cost in the best-case scenario. However, there is a catch. The price of EV vehicles is around 50% more than the diesel version. So does your extra saving per KM justify the extra premium that pay for EV? Let’s find out that.
| Description | Tata Nexon EV | Tata Punch Petrol Automatic |
|---|---|---|
| Price | ₹1929000 | ₹1559000 |
| Price Difference | NA | 1929000-1559000= ₹370000 |
| Yearly Saving On Fuels For EV | 6075X12=₹ 72900 |
So the time required to recover the extra money that you spend on Tata Nexon Electric will be 370000/72900 = 5.07 years. That means You need around 5 years to offset the price of EV over any ICE version (Diesel).
Conclusion: Cost Of Running An Electric Vehicle
On average, there are about 80-90% of fuel cost savings on electric vehicles over the ICE version. But you need around 5 years to recover the extra money that you spend on EV cars which is without considering the battery degradation.
If we consider the battery degradation of 5% per year, you will need around 8 years to recover the extra money that you spend on EVs. On top of that, if you need battery replacement after 8 years which is usually the case with Lithium Ion batteries, you will be losing money in the long run if you choose electric vehicles.
The only benefit at this point, if you choose EV, is that you are contributing to the green energy initiative. There are no savings on fuel costs in the long run for EVs unless you run at least 100 KM a day.
