Is an EV Cheaper to Own?

How to compare an electric vehicle with a petrol one using total cost of ownership, including purchase price, fuel, maintenance and resale.

EVs usually cost more to buy but less to run. The right comparison is the total cost of ownership (TCO).

Parts of TCO

Purchase price.
Energy: electricity vs petrol.
Maintenance: EVs have fewer moving parts.
Insurance and taxes.
Resale value.
Financing costs.

A simple example

An electric scooter costs 1.2 lakh rupees; a petrol scooter costs 90,000 rupees. The EV costs 30,000 more upfront.

Petrol scooter: 2 rupees per km in fuel.
Electric scooter: about 0.25 rupees per km in electricity.
Savings: about 1.75 rupees per km.

At 30 km a day, savings are about 52 rupees a day, or around 19,000 rupees a year. The EV recovers its extra cost in under two years.

When EVs win

High daily use: delivery riders, taxis and autos.
Home charging at low tariffs.

When they may not

Low use.
Uncertain resale and battery replacement costs.
High public charging prices.

Tax benefits

EVs attract 5 percent GST versus much higher rates for petrol vehicles, and many states waive road tax.

The delivery rider

A delivery rider covering 100 km a day switches to an electric scooter. He saves several thousand rupees a month on fuel, far outweighing the higher price.

Thinking the sticker price shows which vehicle is cheaper

Running costs over years often matter more.

Key takeaways

Compare vehicles using total cost of ownership.
EVs cost more upfront but much less per km.
High-use vehicles recover EV premiums fastest.
Low GST and road tax waivers help EVs.