The price of crude oil is at an all-time low, but the cost of petrol and diesel in India is at an 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 it is also becoming out of reach, as the price of CNG is touching ₹100 per KG in many cities.
The new trend is EV vehicles, which can save up to 85-90% of fuel costs and won’t hurt vehicle performance. However, the initial vehicle cost will be very high compared to an ICE engine vehicle.
There’s a trade-off between EVs and ICE ( Internal Combustion Engine) vehicles. To make an informed decision, it’s wise to determine the cost of running an electric car vs. an ICE car.
You can also use this calculator to determine how much money you can save by switching to an electric vehicle.
EV Running Fuel Cost vs Petrol, Diesel, CNG Vehicle
Cost Of Running An Electric Car Vs ICE Car (Petrol)
For this comparison, we have considered the top variant of the Tata Punch Electric and the Tata Punch Petrol.
| Description | Tata Punch EV | Tata Punch Petrol AT |
|---|---|---|
| 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
However, there is a catch. The price of EV vehicles is around 40% more than that of petrol. So, does your extra saving per KM justify the extra premium you pay for an EV? Let’s find out.
| Description | Tata Punch EV | Tata Punch Petrol AT |
|---|---|---|
| Ex-Showroom Price | ₹1549000 | ₹1019000 |
| Price Difference | NA | 1549000-1019000= ₹530000 |
| Yearly Saving On Fuels For EV | 9675X12=₹ 116100 |
So, the time required to recover the extra money you spend on the Tata Punch Electric will be 530000/116100 = 4.56 years.
You Will Need Around 5 Years To Recover The Extra Money That You Spend On an EV Over an ICE (Petrol) Car
Cost Of Running An Electric Car Vs ICE Car (Diesel)
For this comparison, we have considered the top variant of the Tata Nexon Electric and the Tata Punch Diesel.
| Description | Tata Nexon EV | Tata Nexon Diesel AT |
|---|---|---|
| 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
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 your extra premium for the EV? Let’s find out.
| Description | Tata Nexon EV | Tata Nexon Diesel 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 you spend on Tata Nexon Electric will be 370000/72900 = 5.07 years.
You Will Need Around 5 Years To Recover The Extra Money That You Spend On an EV Over an ICE (Diesel) Car
Average Cost To Charge Electric Car
The average cost to charge an electric car depends on the battery capacity. For example, if the car has a 40 kWh battery capacity, you will need 40 power units to charge it fully.
If the electricity rate per unit is ₹7, you must spend 40×7= ₹280 to charge your electric vehicle completely.
Conclusion: Cost Of Running An Electric Car
Electric vehicles save about 80-90% of fuel costs over the ICE version. But you need around 5 years to recover the extra money you spend on EV cars, and this is without considering the battery degradation.
Considering the 5% battery degradation per year, you will need around 8 years to recover the extra money you spend on EVs.
In addition, 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.
If you choose an EV, the only benefit at this point is that you are contributing to the green energy initiative.
In the long run, EVs do not save fuel costs unless you run at least 100 km a day.
