The shift from petrol-powered cars to electric vehicles (EVs) is gaining momentum in India. But for most Indian consumers, the core question remains: “Is an EV truly cheaper to own than a petrol car over time?” This article offers a deep dive into the Total Cost of Ownership (TCO) for EVs vs petrol cars in India, over a 5-year period. We explore every cost component—purchase price, running cost, maintenance, insurance, depreciation, and government incentives—to give you a clear, practical comparison.
1. What is Total Cost of Ownership (TCO)?
TCO refers to the cumulative cost of owning and operating a vehicle over its expected lifetime—in this case, 5 years. This includes:
- Initial Purchase Price
- Registration and Road Tax
- Fuel or Charging Costs
- Servicing and Maintenance
- Insurance Premiums
- Resale Value (Depreciation)
2. Initial Purchase Price: EV vs Petrol Car
| Vehicle | Type | Approx. Ex-showroom Price |
|---|---|---|
| Tata Nexon EV MR | Electric | ₹14.49 lakh |
| Tata Nexon Petrol (Petrol XZ+) | Petrol | ₹11.69 lakh |
Note: On the surface, EVs are 20-30% more expensive upfront. However, many state and central subsidies can significantly lower this cost.
Subsidies that Reduce EV Costs
- FAME II (central): Up to ₹1.5 lakh
- State-level subsidies: Delhi, Maharashtra, Tamil Nadu, and others offer between ₹30,000–₹1.5 lakh
- Road Tax Waivers: Available in most states for EVs
Effective Price (After Subsidy for Tata Nexon EV in Delhi):
- ₹14.49 lakh – ₹1.5 lakh (FAME II) – ₹1.5 lakh (Delhi subsidy) = ₹11.49 lakh
3. Fuel vs Charging Cost (5-Year Calculation)
Assumptions:
- Average daily driving: 40 km
- Total yearly mileage: 14,600 km
- Fuel cost: ₹100/litre
- Petrol car mileage: 15 km/l
- EV energy consumption: 0.15 kWh/km
- Electricity cost: ₹8/kWh
Petrol Car Fuel Cost
- 14,600 km ÷ 15 = 973 litres/year
- 973 × ₹100 = ₹97,300/year
- Over 5 years: ₹4,86,500
EV Charging Cost
- 14,600 × 0.15 = 2,190 kWh/year
- 2,190 × ₹8 = ₹17,520/year
- Over 5 years: ₹87,600
Savings on Fuel: ₹4,86,500 – ₹87,600 = ₹3,98,900
4. Servicing and Maintenance Costs
| Component | Petrol Car (5 yrs) | EV (5 yrs) |
| Engine Oil | ₹6,000/year | Not Required |
| Filters & Lubricants | ₹2,000/year | Minimal |
| Brake Pads | ₹3,000/year | ₹1,500/year |
| General Repairs | ₹3,000/year | ₹1,500/year |
| Total | ₹70,000–₹90,000 | ₹25,000–₹40,000 |
Savings on Maintenance: Up to ₹50,000 over 5 years
5. Insurance Cost
While EVs may have slightly higher insurance premiums due to their higher purchase price, insurers are now offering EV-specific packages. Over 5 years:
- Petrol Car Insurance: ₹50,000–₹60,000 total
- EV Insurance: ₹60,000–₹70,000 total
Difference: ₹10,000–₹15,000 extra for EVs
6. Depreciation & Resale Value
Resale value for EVs is gradually improving, especially with companies offering battery warranties of up to 8 years. Still, resale values remain a bit uncertain.
- Petrol Car (after 5 years): ~45–50% resale value
- EV (after 5 years): ~40–45%, though rising with demand
Example:
- Petrol Nexon resale: ₹5.3 lakh
- Nexon EV resale: ₹5 lakh
Difference: ~₹30,000–₹40,000
7. EV vs Petrol: 5-Year TCO Summary
| Component | Petrol Car | EV |
| Purchase Cost (with subsidies) | ₹11.69 lakh | ₹11.49 lakh |
| Fuel/Charging | ₹4.86 lakh | ₹87,600 |
| Maintenance | ₹80,000 | ₹35,000 |
| Insurance | ₹55,000 | ₹65,000 |
| Resale Value | ₹5.3 lakh | ₹5 lakh |
| Total TCO (5 yrs) | ₹12.68 lakh | ₹7.12 lakh |
Net Savings with EV: ₹5.56 lakh over 5 years
8. Additional Considerations
Environmental Impact
EVs reduce your carbon footprint by nearly 60% over petrol cars.
Government Incentives
Tax exemptions under Section 80EEB for EV loans (up to ₹1.5 lakh interest deduction)
Charging Infrastructure
Improving across cities like Delhi, Mumbai, Bengaluru; home charging is often sufficient for daily users.
Performance
EVs offer instant torque, smoother drive, and fewer vibrations.
FAQs – EV vs Petrol Car Ownership in India
Q1: Are EVs worth buying in 2025 in India?
Yes, especially in urban centers where charging infra is developing rapidly. They’re cost-effective in the long run.
Q2: Will battery replacement wipe out savings?
Most EVs come with an 8-year battery warranty. Replacements are rare within the first 5 years.
Q3: Is charging at home cheaper than public stations?
Yes, home charging (₹6–8/kWh) is more economical than public fast chargers (₹15–20/kWh).
Q4: Are subsidies expected to continue in 2025?
Many states have extended EV policies till 2025–26, and the central FAME III scheme may be introduced soon.
Q5: Can I use an EV for long trips?
Yes, especially with growing highway fast-charging networks, though planning is needed.
Conclusion: Is an EV Better for Your Wallet?
The numbers speak clearly—EVs win on Total Cost of Ownership. While the upfront price may seem high, government subsidies and lower running/maintenance costs tip the scales heavily in favor of electric vehicles over a 5-year horizon. With rising fuel costs and increasing EV options, now is arguably the best time to make the switch.
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