Electric Vehicles Vs. Petrol-Powered Cars: An In-Depth Cost Comparison
Purchasing a car is no small feat, with countless options vying for attention. Adding to the mix is the rising popularity of electric vehicles (EVs). As more manufacturers launch EVs in India, it's crucial to understand how they compare to conventional petrol cars. This article provides a comprehensive analysis, helping you make an informed decision.
Factors affecting car ownership cost
Several factors influence a car's total ownership cost (TOC), irrespective of the fuel type. Be it an electric car or a petrol car; you have to account for several factors. In this section, let's take a look at the factors that determine the cost of ownership of a vehicle.
1 Vehicle price
It’s the upfront cost of the vehicle. In other words, it’s the amount you pay to the dealer for purchasing the car. It also includes the registration costs and additional costs related to the vehicle, such as accessories, extended warranty packages, etc.
2 Car insurance cost
It is the premium you pay to insure the vehicle. The new car insurance premium depends on the vehicle's price or value and the chosen coverage. The insurance cost also fluctuates as per the vehicle's age and overall mechanical condition.
3 Fuel price
It is the price you pay to purchase fuel for your car. For example, the cost of a litre of petrol or a unit of electricity (charging cost) is considered as the fuel price.
4 Maintenance cost
It is the money you spend on maintaining the car. It includes service costs, parts replacement costs and other miscellaneous costs related to vehicle maintenance.
5 Fuel efficiency
It is the distance travelled by the vehicle on a litre of fuel or a full charge in the case of electric cars. The fuel economy depends on various factors such as type of vehicle, engine capacity, driving style, driving environment and road conditions.
6 Driving distance
It is the total distance you drive in a day, month or year. The driving distance plays a significant role in determining the running cost. Because the more distance you drive, the more costs you incur.
Example: TATA Nexon comparison
| Aspect | TATA Nexon Petrol | TATA Nexon EV |
|---|---|---|
| Ex-Showroom Price | ₹994,900.00 | ₹1,630,000.00 |
| RTO | ₹69,643.00 | ₹0.00 |
| Insurance | ₹49,745.00 | ₹81,500.00 |
| Registration Charges | ₹600.00 | ₹600.00 |
| Others | ₹4,000.00 | ₹4,000.00 |
| FasTag | ₹600.00 | ₹600.00 |
| Hypothecation Endorsement | ₹1,500.00 | ₹1,500.00 |
| Road Safety Cess | ₹1,791.00 | ₹2,934.00 |
| Other Charges | ₹400.00 | ₹400.00 |
| Total Cost (C) | ₹1,123,179.00 | ₹1,721,534.00 |
| Savings (S) | ₹598,355.00 | None |
Running cost analysis over 8 years
Assumptions:
• Analysis Years: 8
• Per Day Running Kms: 50
• Per Year Running Kms: 18,250
| Aspect | Petrol | EV |
|---|---|---|
| Per Km Cost | ₹7.00 | ₹0.70 |
| Avg. Service Cost | ₹7,500.00 | ₹6,000.00 |
| Avg. Insurance Cost | ₹10,000.00 | ₹16,000.00 |
Total Running Cost Over 8 Years:
| Aspect | Petrol | EV |
|---|---|---|
| Service Cost | ₹60,000.00 | ₹48,000.00 |
| Fuel Cost | ₹10,22,000.00 | ₹1,22,000.00 |
| Insurance Cost | ₹80,000.00 | ₹1,28,000.00 |
| Total Running Cost | ₹16,62,000 | ₹10,58,000 |
Overall cost:
• EV: ₹26,24,900
• Petrol Vehicle: ₹26,88,000
Conclusion
The decision to buy an electric or petrol car depends on your needs and location. Here are some pointers:
For Daily Commute:
If you live in a metro city and drive mainly for commuting, an EV can be practical, given you are prepared for the higher initial cost.
For Versatility:
If you need a versatile vehicle with robust performance, a petrol car might be more suitable due to the current limitations in charging infrastructure. Petrol cars are also more affordable upfront.
In conclusion, while EVs are a compelling option given the evolving market and incentives, they might not yet serve as the sole vehicle for every need. Choose wisely based on your specific requirements and circumstances.
