Which is a cheaper to own, electric vehicle, petrol or diesel in India

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In this article, we will calculate which is cheaper to own petrol/diesel or an EV. We are doing this in 2023, which may change in the future. We will consider the cost of the vehicle, the price to fill or recharge the vehicle and also the maintenance cost.

In India, people drive around 35/km per day, equating to 245 Km per week, 1050 km per month and 12600 km per year. However, this was a TOI survey from 2018. This may vary depending on the city, how better the public transport is and more. But we will consider this a base.

We will use Tata Nexon because we have EVs and petrol and diesel on the same platform. This will be easy to compare and calculate which is cheaper to own petrol/diesel or an EV.

Tata Nexon

tata nexon running ev is cheaper

We will consider the cost of the vehicle to buy, which will be the on-road price. We will consider the car being bought with cash, and now the EMI option. If you buy with EMI, you can add your EMI to the cost which we will calculate to know your monthly expense.

Tata Nexon EV MaxEV PrimeTata Nexon PetrolTata Nexon Diesel
VariantXZ Plus 3.3 KWXZ PlusXZ PlusXZ Plus
Price on-roadRs 17.51 LakhsRs 16.99 LakhsRs 12.51Rs 14.33
Service Cost (per year)Rs 2500Rs 2500Rs 4500Rs 6000
Fuel Efficiency6.6 Km/Kwh7 Km/Kwh13 kmpl20 Kmpl
Fuel Tank/Battery Capacity40.5 kWh30.2 kWh44 Litres44 Litres
Range267 Km211 Km572 Km880 Km
Cost to Refuel/RechargeHome Charging – Rs 7 * 40.5 = Rs 285
Charging Station – Rs 15 * 40.5 = Rs 610
Home Charging – Rs 7 * 30.2 = Rs 212
Charging Station – Rs 15 * 30.2 = Rs 455
Rs 4,700 (Rs 106/Litre)Rs 4,100 (Rs 93/Litre)
Cost per KmRs 1.1/Km & Rs 2.2/KmRs 1/Km & Rs 2.1/KmRs 8.2/KmRs 4.6/km
* All the rates are from Nagpur, Maharashtra

This shows that the cost of running an EV is 4 times less than a Diesel vehicle and 8 times less than a Petrol vehicle when charged at home.

Let’s calculate 5 Year cost for all the vehicle

Tata Nexon EV MaxEV PrimeTata Nexon PetrolTata Nexon Diesel
Maintenance costRs 12,500Rs 12,500Rs 22,500Rs 30,000
Running Cost (Considering 12600 km per year travel, a total of 63,000 Km for 5 years)63,000 * 1.1 = Rs 69,300
63,000 * 2.2 = Rs 1,38,600
63,000 * 1 = Rs 63,000
63,000 * 2 = Rs 1,26,000
63,000 * 8.2 = Rs 5,16,60063,000 * 4.6 = Rs 2,89,800
Total Cost for 5 yearsRs 81,800
Rs 1,51,100
Rs 75500
Rs 138500
Rs 5,39,100Rs 3,19,800
Running cost + Vehicle costRs 18,32,800
Rs 19,02,100
Rs 17,74,500
Rs 18,37,500
Rs 17,90,100Rs 17,52,800
* Maintenance cost does not include any major part change, just regular servicing

From this we can understand, diesel is the cheapest in the 5th year, followed by Nexon EV prime if charged at home, then the Nexon Petrol after that Nexon EV Max. This shows EV is cheaper to run & own.

Let’s calculate 8 Year cost for all the vehicle

Tata Nexon EV MaxEV PrimeTata Nexon PetrolTata Nexon Diesel
Maintenance costRs 20,000Rs 20,000Rs 36,000Rs 48,000
Running Cost (Considering 12600 km per year travel, a total of 1,00,800 Km for 8 years)1,00,800 * 1.1 = Rs 1,10,880
1,00,800 * 2.2 = Rs 2,21,760
1,00,800 * 1 = Rs 1,00,800
1,00,800 * 2 = Rs 2,01,600
1,00,800 * 8.2 = Rs 8,26,5601,00,800 * 4.6 = Rs 4,63,680
Total Cost for 8 yearsRs 1,30,880
Rs 2,41,760
Rs 1,20,800
Rs 2,21,600
Rs 8,62,560Rs 5,11,680
Running cost + Vehicle costRs 18,81,880
Rs 19,92,760
Rs 18,19,800
Rs 19,20,600
Rs 21,13,560Rs 19,44,680
* Maintenance cost does not include any major part change, just regular servicing

We have not counted the insurance cost, which will vary. The insurance of a petrol/diesel car is lower than an Electric vehicle. By how much cannot be said, but for Tata Nexon Petrol & Diesel it is around Rs 56,000, though for EV Max it is Rs 71,000 and for EV prime it is Rs 69,000 this is the cost at the time of buying a vehicle. See this table for insurance rates according to the policy bazaar.

Capacity of batteryPremium Rate for 1 year (In INR.)Premium Rate for 3 years (In INR.)
More than 65 kilowatt670720659
More than 30 kilowatt & less than 65Kilowatt27388104
Less than 30 kilowatt17614492

Conclusion

According to the calculation, it shows that the running cost of an EV is very less, but the initial cost of buying an EV is more. That is because of the new technology of EVs. As we adapt to EVs, the initial cost of buying will come down, but the charging cost may go up due to rising demand. Though the charging cost will only go up for charging outlets and fast charges.

EVs are the best option for daily commutes, as we now have a decent range, and if you can charge at home your running cost will also be low. Though charging at home is not practical for everyone. You can opt for Fast charger installation at home, which would cost you an approx Rs 40000 for 7.4 kWh.

So which vehicle is best to own, depends on your driving. If you are doing regular long-distance travel then diesel is the best option as of now, if you want a daily city commuter, EVs are the best. But if you want to do both I would suggest you buy a petrol vehicle. Though as we move towards the future, EVs are going to get better range and charging infrastructure. We also have hydrogen cars, that may become mainstream with time.

So buying an EV is expensive, but when we talk about the overall running cost of an EV it is cheaper to own an EV over a petrol/diesel vehicle.

Welcome to your Cheap to run

Which vehicle do you own?

Which vehicle would you buy now?

About Post Author

Girish

Hello Guys I am a website developer by profession but is always keen on learning new things. I have been investing in Mutual funds, stock market for the past few years because of which I have gained good knowledge. I started my entrepreneur journey in 2019 which lead me to learn more things as I am moving forward. I always love to share whatever I learn. Always had a craze for cars from my childhood, which inspired me to start this website.
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Girish

Hello Guys I am a website developer by profession but is always keen on learning new things. I have been investing in Mutual funds, stock market for the past few years because of which I have gained good knowledge. I started my entrepreneur journey in 2019 which lead me to learn more things as I am moving forward. I always love to share whatever I learn. Always had a craze for cars from my childhood, which inspired me to start this website.

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