There is always a question mark on an EV’s price. Are electric vehicles really worth the price? Recently, the price hike in gasoline fuel has been burning the pockets of ordinary people in India. They have now crossed the 100 rupees mark which can increase the expenses of an individual. But there’s always a path. With the invention and gaining market popularity, the demand of EV ( Electric vehicles) is increasing day by day. Many people are gradually gravitating towards EV. India saw remarkable sales of electric vehicles after the COVID-19 pandemic. But there is still a question in people’s minds – is buying an EV wise? So today we will nitpick on Electric vehicles and see the comparisons between EVs and normal diesel or petrol cars.
Pros of Buying an Electric Vehicle
Running cost
EV’s much cheaper to run and it is more efficient than normal cars. It requires less energy to operate which results lower fuel costs for drivers. Lower fuel costs means more savings for the consumers. Ev’s also can be powered by renewable energy resources ( solar , wind ) which can mitigate the dependence on the non renewable fossil fuels. If we estimated the running cost of an EV then it will be 1.2 or 1.4 rupees per kilometers while a petrol car costs 8-10 rupees per kilometers. So it can save 6.5-8.5 rupees per kilometer which is very beneficial to the consumers.
Maintenance
EVs are known to have lower maintenance costs as they have fewer moving parts than petrol or diesel engines. For an EV , the maintenance charge is 1000 to 2000 rupees a year while a non – EV costs almost 4000 to 5000 rupees a year. A lower maintenance cost means that the consumer has to spend less amount of money for maintaining the vehicle. The consumer will have more savings on this.
Government Incentives and Tax Benefits
Many governments offer tax breaks and a deduction of up to rupees 1.5 lakh on the interest of loans for electric vehicles. This will help the citizens adapt to the EVs. Government incentives can provide loans for buying an EV from where the buyers can pay for it. They will also provide installment facilities so that the buyers will have to pay a small amount in every month to buy an EV. Spending a large amount of money at a time to buy an EV can be troublesome for some buyers. So the installment facility is good.
Impact on environment
It produces zero tailpipe emissions, which can substantially reduce pollution in the air and maintain the sustainability of the environment. So the EV is very beneficial for humans and other living species in our planet.
Zero or low sound of engine
The noise that is produced from an EV vehicle is very low or can be considered as zero sound. It can be helpful to reduce noise pollution in metropolises. EVs can be very helpful for people who have problems with heavy sounds.
Cons of buying an EV –
Upfront Cost
EVs are generally more expensive than diesel or petrol cars due to battery technology. The upfront cost of an electric vehicle is basically higher than other cars. Higher upfront cost means that the consumer has to spend more amount of money for the vehicle.
Comparing the cost of a petrol and electric car, the price for the top-of-the-line Tata Nexon petrol costs Rs 15.6 lakh and the price for the top-of-the-line Nexon EV is Rs 19.2 lakh (both prices ex-showroom). Talking about the Mahindra XUV, the price for the top-of-the-line petrol XUV 300 is Rs 13.5 lakh and the price for the top-of-the-line all-electric XUV 400 is Rs ’7.7 lakh (both prices Ex-showroom).
Similarly, the top-of-the-line MG ZS EV costs Rs 25 lakh and the price for the top-of-the-line MG Astor costs Rs 18 lakh (both prices Ex-showroom). [ Source – Times of India ]
Range
EVs generally have a shorter driving range than a full tank of gasoline or diesel. Most of the models of EVs have a range of 250-330 km, while a gasoline engine that contains petrol or diesel with a full tank quantity has a range of up to 500 km.
Charging time
When it comes to the charging time taken by an EV to be charged, then this vehicle faces criticism. It is very time-consuming. As per calculation, a 3.2 kW battery takes about 10 hours of charging time, thus providing about 10-20 km of range per hour of charging. Similarly, a 7.2 kW battery can give you about 30-40 km of range per hour of charging and need about 4 to 5 hours of charging. A 30 kW battery needs nearly 1 hour of charging using a DC fast charger to charge and can give you a range of approximately 180-250 km. [ Source – The Economic Times ]
Charging Infrastructure
The charging infrastructure for EVs is growing rapidly. As per PIB (Press Information Bureau), there are 12146 public charging stations in India till February 2024. The state of Maharashtra has the highest number of public charging stations (3079).
The Indian government has established 2877 public charging stations under the FAME II scheme. Some states, that got the maximum number of charging stations under this scheme are Maharashtra, Gujarat, Tamil Nadu, and Andhra Pradesh
If we talk about the charging infrastructure in some metropolitan cities, then Delhi has the highest number of EV charging stations. The region has a growing network of approximately 2100 public charging stations. The government of Delhi is aiming to install public charging stations every 3 kilometres within the region.
The metropolis that holds the 2nd position of the number of public charging stations is Mumbai. This city has a total of 1600 public charging stations. The government is actively promoting EV adoption there and setting up charging stations with the collaboration of private companies. As per the EV policy, the government of Maharashtra is setting up public charging stations every 3 kilometers in urban areas and every 25 kilometers on highways.
Another big city is Chennai, which has more than 700 public charging stations as of 2024. The government of Tamilnadu is promoting the EV by their EV policies.
Kolkata, the city of joy, is also expanding its EV charging infrastructure by setting up public charging stations within the city. The city has now over 550 public charging stations and the government of West Bengal is aiming to install more.
EV Batteries; their life and replacement
One of the major components of an Electric vehicle is its battery. Unfortunately, there is no way to repair them but change. So, over time the battery of the EV will be degraded and lose it capacity to function properly, requiring replacement. If it’s an Electric car’s battery then the estimated cost of the replacement will be around 4 lakhs and if it’s a two wheeler then the estimated cost of the replacement will be around 50000 rupees.
Resale Value of Electric Vehicles
Basically, the resale value of an electric vehicle depends some major factors –
Battery life and condition: The main component of an EV is its battery. The resale value is also decided on battery’s current health and efficiency. Over time, the power of a battery in an EV reduces gradually. It also reduces the original range of an EV. A 2nd hand EV buyer will always be concerned about this drawback. And probably they won’t pay the amount to buy the EV what the seller has thought. Basically, an EV battery lasts up to 8 to 15 years, depending on the usage and maintenance of the EV. So if someone has decided to sell their EV, it’s good to sell an EV between those years.
Car and its condition: The condition of the EV determines its resale value. The interior and exterior, moving components, electrical systems, and other parts in an EV play a crucial role to decide the resale value. The EV, which is in good condition, is always valued higher than the car in bad condition.
Newer models of that car: Over the years, the EV companies have continued to release newer models of the vehicles with advanced features, ranges, technology, and more customer satisfaction. This will obviously depreciate the value of older models because customers might prefer the latest models instead of the older ones.
Price change of that car over the years: The deduction in EV price every year can reduce the resale value. If the price of a newer model of EV drops, then it will impact the resale value of the older models.
Customer demand for that model: There are many EV models that are highly demanded. These vehicles have high resale values in the resale market. Popular vehicles always have a good reputation with positive reviews by customers. That’s why these vehicles hold their resale value in the market.
Warranty/Guarrantee of the battery and other parts of the EV: If the vehicle’s warranty/guarantee period is still running, then it is quite valuable in the resale market. A warranty or guarantee of the battery or other components of the EV reassures its buyers. Various EV companies offer their customers a warranty of 8 years, or 1,00,000 miles of running on batteries. This can impact their resale value. Electric vehicle with remaining warranty period will always be more valuable than the vehicle without any warranty.
Brand of that EV: The brand of an electric vehicle has a huge impact on its resale value. Every brand has their own speciality such long lasting battery, higher rage, durability, servicing which can play a big role on determining the resale value.
Here is a quick inspection of what percentage of the seller will get for selling an EV after using it for different years.
- Tata Nexon EV – 70 to 75% of its value after three years.
- MG ZS EV – 65 to 70 % of its value after three years.
- Hyundai Kona Electric – 60 to 65% of its value after three years.
- Mahindra e-Verito – 50 to 55% of its value after three years.
- Tata Tigor EV – 55 to 60% of its value after three years.
- Audi e-tron – 60 to 65% of its value after three years.
- Mercedes-Benz EQC – 60 to 65% of its value after three years
- Tesla Model 3 – 53.3% of its value after five years.
- Chevrolet Bolt – 73% of its value after five years.
- Hyundai Ioniq 6 – 37.3% of its value after five years.
- Rivian R1S – 47% of its value after five years.
| Features | Electric vehicle ( EV ) | Petrol / Diesel Car |
| Upfront cost | High | Moderate |
| Running cost | Low | High |
| Maintenance | Low | Moderate |
| Government incentives | Yes | No |
| Environmental impact | Low | Very high |
| Range | Moderate | High |
| Charging and infrastructure | Limited | Extensive |
| Resale Value | Higher | Lower |
Is buying an EV worth it?
EVs are a great choice for the people who environmentally conscious. It is very useful mostly in short trips and have access to charging at home or work. The Ev’s are becoming more affordable and convenient, but charging infrastructure and range limitations are still the challenges to face for some electric vehicle makers company.
Diesel and petrol cars are good options if one need a long driving range or don’t have access to charging facilities. But the Ev’s are at a level of highly demanded because of it’s uniqueness of designs , facility, affordability, trend and easy to access.
Obviously it is an wise option to buy an Electric Vehicle to get rid of the immense expenses of a petrol or diesel car.
But on the other side, it’s not easy to buy an electric vehicle for an ordinary people because the cost is very high. If we want to overcome this problem one can get financial help from a bank and there are some other organisations for it.
Let’s look at those as well.
Financial help from banks for buying an Electric Vehicle
Many banks in India provide financial help to buy an electric vehicle. Many of them are actively promoting EV loans with attractive offers like:
Lower Interest Rates
Banks like SBI, HDFC, and PNB offer EV loans with minimal interest over the amount. The interest rates on EV loans are less than regular car loans. This can substaintially reduce your overall borrowing cost.
Higher Loan-to-Value (LTV) Ratio
Banks are sometimes willing to finance a larger portion of the EV’s on-road price compared to a traditional car loan. This means the individual who is willing to buy an EV need a smaller down payment.
Repayment Options
EV loans normally offer repayment dates after the first date of payment is failed, it allows you to arrange your monthly EMIs and make them more manageable.
Faster Processing and Minimal Documentation: Some banks approves the loan for buying an electric vehicle very quickly by documenting minimal required papers.
Financial help from others sources
There are a few other sources to explore for financial help when buying an electric vehicle (EV) in India:
Government Subsidies
FAME II Scheme
The word FAME stand for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles which is programmed by the Indian government. It offers subsidies on the purchase of EVs.
State Incentives
Some states in India offer extra subsidies or beneficial schemes on the purchase of an EV. The schemes or benefits can be different depending on the state and also may include exemptions from road tax or registration fees. One can research the specific incentives offered in his or her state by searching online for “[state name] electric vehicle subsidy”.
“Karnataka Electric Vehicle Subsidy” –
“Maharashtra Electric Vehicle Subsidy” –
“Delhi Electric Vehicle Subsidy” –
“West Bengal Electric Vehicle Subsidy” –
Manufacturer Rebates and Offers:
Discount from EV Manufacturers:
Some EV manufacturer companies sometimes provide special discounts or cashback offers on their vehicles such as:
Tata Motors: The Tata Motors company offers discount up to Rs. 1.30 lakh on Tata Nexon EV MY2023 models. They also offer a discount of Rs. 80,000 on the same vehicle’s latest 2024 models. The consumers will be benefitted upto Rs. 75,000 on Tata Tiago EV MY2024 model and Rs. 90,000 on MY2023 model. There is another discount offer up to Rs. 1 lakh on Tata Tigor EV MY2023 model.
Tata Motors – https://www.tatamotors.com/
Ola Electric: The EV scooter company Ola offers Rs. 5,000 off on both Ola S1 Air and S1 Pro. They also offer a huge discount of Rs. 10,000 on Ola S1 X+.
Ola Electric – https://www.olaelectric.com/
Non-Banking Financial Institutions (NBFCs):
Non-banking financial institutions like NBFCs also offers loan for purchasing an EV. But the interest rate from this financial institutes are slightly higher then normal government accumulated banks. These institutes can be an alternative if you don’t want to take loans due to personal reasons or some other factors.
Some resources for EV loans in India:
e-AMRIT portal
The government of India provides a web portal for the information of financing options of EV, it includes the list of the banks where you will get to know the participating banks , interest rates , subsidies, time of payment and some other informations. [https://e-amrit.niti.gov.in/](https://e-amrit.niti.gov.in/).
Things to Consider before Buying an EV
Driving range
Always remember the average range of your driving before buying an EV. There are different types of EV’s for different types of driving range.
Availability of charging stations
Be aware of the availability of the charging stations where live and work . If the charging stations are not enough close from your residence and you have no EV charging point in your place then you will face problems.
Refuel or recharge time
It is the biggest component of an EV. Basically time is expensive to us than any other things so you obviously want a EV with less charging or refueling time. The charging time depends on the battery capacity, quality and the overall technical softwares that are attached to the EV.
Comparing loan offers
Compare the different offers given by different banks or financial institutes. Chose the best among them
Think before purchase
Estimate the total cost of ownership, charging, maintenance, insurance etc. before making your decision to purchase an EV.
Government help
Have a look on any government subsidies or tax benefits if it is applicable and beneficial to you. Discuss with some people who has purchased EV through this process.
Conclusion
In conclusion, it is very clear that choosing EV as an alternative of petrol or diesel car is a very good decision. It is a step for the sustainability of the world and protects from global warming or climate change. On the other hand, it is very beneficial to people due to less expensive, easily accessible, no or zero sound technology, quick acceleration. People criticisms are there like battery health , less satisfaction or charging availability but it is obvious that these criticisms will be converted to claps as the technology grows day by day , making EV as first choice.
Frequently Asked Questions (FAQs) about EVs
Are EVs safe?
While manufacturing an EV, the car undergoes with the process of rigorous safety testing. EVs have a low center of gravity which provides more stability to the car compared to others.
How long do EV batteries last?
The modern battery lasts for 10 – 15 years or we can say it will run upto 10000 miles with proper care to the batteries. The more you care, the more the batteries will run.
Are EV’s powerful?
The electric vehicles deliver quick torque which means strong and smooth acceleration. It will give a quick driving experience.
Can EV’s be modified?
Yes EV’s can be modified but upto certain limits. You can modify the wheels , interiors and exteriors but modifying the exhausts and the engine or swapping battery can be expensive and complex.
ShahAwaaz 