Electric Cars vs Petrol/Diesel Cars: Is Going Green are Wallet-Friendly in India?

As the world transitions to sustainable solutions, the debate between electric cars and petrol or diesel vehicles becomes more important. In India, where the automotive market is rapidly changing, many buyers want to know which option is more financially beneficial in the long run. With rising fuel costs, pollution concerns, and government incentives, the choice between electric and traditional cars extends beyond individual taste—it's about making a smart financial decision.

Understanding the Cost of Ownership

When evaluating the financial aspects of owning a vehicle, it’s Important to consider all factors, including purchase price, fuel costs, maintenance, and other expenses.

Electric vehicles (EVs) usually come with a higher initial price tag, which can be anywhere from 10% to 30% more than similar gasoline or diesel vehicles. For instance, if a petrol car costs ₹20,00,000, an electric version might range from ₹22,00,000 to ₹26,00,000. Nevertheless, as advancements in technology progress and production increases, the prices of EVs are beginning to decrease. On the other hand, gasoline and diesel cars tend to be more affordable at the point of purchase, making them attractive options for a wide range of buyers.

Running costs present another story. Charging an electric vehicle (EV) at home can cost as little as ₹6 to ₹8 per unit, significantly lower than the current petrol prices hovering around ₹100 to ₹110 per liter in most urban areas. Studies indicate that electric cars can save drivers approximately 50% on fuel costs annually. For instance, if you drive 15,000 km a year, switching to an EV could save you around ₹20,000 to ₹30,000 based on fuel price differences.

So if you drive to much in terms of Km then prefer electric vehicle otherwise go with normal petrol/diesel vehicle

Maintenance Costs

An often-overlooked financial advantage of electric vehicles is their lower maintenance costs. Electric cars have fewer moving parts compared to petrol or diesel cars, leading to fewer repair issues.

For example, EVs do not require oil changes, and their advanced regenerative braking technology reduces wear on brakes, potentially extending their lifespan. In contrast, traditional cars require regular servicing, oil changes every 5,000 to 10,000 kilometers, and might incur higher costs for parts replacement over time.

One challenge associated with electric vehicles is the substantial cost of battery replacement once they reach the end of their lifespan. This expense can be considerable, typically ranging from Rs 7 to 8 lacs. For instance, if a consumer purchases an electric vehicle with a battery that lasts around 8 to 10 years, they may face a hefty financial burden when it comes time to replace the battery, which could significantly impact the overall cost of ownership.

In fact, a study by a leading automotive research firm found that the average maintenance cost for an EV is around ₹10,000 annually, while traditional cars can cost between ₹15,000 to ₹20,000. Over the life of the vehicle, these savings can add up significantly.

Electric car charging station in a city setting.

Extra Costs and Benefits

In India, the government is encouraging people to buy electric vehicles (EVs) by offering various subsidies. One of the main benefits is a big cut in the Goods and Services Tax (GST) on EVs, which can be as low as 5%. In comparison, the GST for petrol and diesel vehicles is 18%.

Additionally, many states offer special benefits like lower road taxes and reduced registration fees for electric cars. For instance, in Delhi, there is a program that allows buyers of electric vehicles to save up to ₹1.5 lakh on the purchase price. These incentives can significantly reduce the overall cost of EVs, making them a more attractive option than traditional cars.

On the other hand, petrol and diesel vehicles do not enjoy these perks. As pollution rules become stricter, these vehicles may face more limitations and extra fees, which could affect their affordability in the long run.

Resale Value Considerations

Resale value is crucial in determining the overall financial viability of a vehicle. Historically, petrol and diesel cars have maintained better resale values. However, as environmental awareness grows, more consumers are seeking used electric cars, which boosts demand.

For instance, a survey revealed that over 60% of potential car buyers would consider an electric vehicle as their next purchase. Furthermore, improvements in battery technology and the expansion of charging infrastructure are likely to enhance the resale value of second-hand electric vehicles in coming years.

This shift in consumer preference could change how depreciation for both vehicle types stacks up, making electric vehicles a more appealing long-term investment.

Environmental Impact and Financial Accountability

When we think about electric vehicles (EVs), we often focus on money. However, we can't ignore their positive effects on the environment. The Indian government is working hard to cut down carbon emissions, and by choosing EVs, consumers play a part in this important mission.

Financial and environmental benefits go hand in hand. Nowadays, many buyers care about sustainability when making choices. As a result, car manufacturers are stepping up by investing more in electric technology.

While electric cars might cost more upfront, they offer the potential for savings over time and help support eco-friendly initiatives, which makes them a valuable choice.

Final Thoughts on Electric vs Petrol/Diesel Cars

In India's shifting automotive landscape, the discussion between electric and conventional vehicles remains relevant. By considering ownership costs, maintenance, incentives, and resale value, it becomes clearer that electric vehicles often represent a more financially sound choice, especially for those who can utilize government incentives and benefit from lower running costs.

Even if the initial investment appears daunting, the declining prices of electric cars and the climbing costs of fossil fuels present a compelling argument for making the switch. Additionally, the environmental advantages resonate with a growing number of eco-conscious consumers.

Ultimately, the decision between electric and traditional vehicles rests on individual priorities. However, for many, embracing electric mobility could lead to significant financial benefits while also contributing positively to the planet.

Petrol station showing fluctuating fuel prices.

Exploring electric vehicles might be a wise decision for both your finances and the planet, whether you consider the environmental benefits, the pleasure of driving a quieter car, or the potential for long-term savings.