EV vs petrol car in India: running cost, payback and what to check
Written and reviewed by Omm · Last reviewed · General information, not investment advice
A car costs money in three ways: what you pay to buy it, what you pay to keep it on the road, and what it is worth when you sell. Comparisons of electric and petrol cars often look at only one of these. This guide shows how to look at all three, and the number that matters most: how far you drive.
Cost per kilometre
For a petrol, diesel or CNG car, the fuel cost per kilometre is simply the price of the fuel divided by the mileage you actually get. At ₹100 a litre and 15 km a litre, that is about ₹6.67 a kilometre.
For an electric car it works the other way around. The battery size divided by the real range tells you how many units of electricity each kilometre uses. A 30 kWh battery that gives 200 km uses 0.15 units a km. Not all the energy from the socket reaches the battery, so allow for charging loss, and multiply by the price you pay for a unit. A home connection on your household tariff is usually much cheaper than a public fast charger, so the share of your charging done at home matters.
Add maintenance per km to both. Electric cars usually need less servicing, but check the actual quote for the car you are looking at.
You can try your own numbers in the car running cost calculator.
The higher price of an electric car
An electric car often costs more to buy. That extra price has to be earned back through lower running costs, and that is where distance matters. The payback is the extra price (less any subsidy) divided by your monthly running-cost saving. Someone who drives 2,000 km a month saves roughly twice as much each month as someone who drives 1,000 km, so pays back in about half the time.
The EV vs petrol calculator shows the monthly saving, the payback in months and kilometres, and the total cost over the years you plan to keep the car.
What is often left out
- Insurance usually depends on the price of the car, so a dearer car costs more to insure.
- Road tax and registration, which differ by state and sometimes by fuel type.
- Resale value. This is hard to predict for newer technology, and it can move the total in either direction.
- Battery: how long it lasts, what the warranty covers and what a replacement would cost.
- Charging access. If you cannot charge at home, you will pay more per unit and spend time at chargers.
- Loan interest, if you borrow to buy.
A sensible way to compare
- Use the mileage and the electricity and fuel prices you actually pay, not brochure figures.
- Be honest about the distance you drive in a month, including trips.
- Compare the total cost over the years you will keep the car, not only the monthly saving.
- Try different assumptions: higher fuel prices, a lower real range, more public charging. If the answer flips easily, it is close, and the other factors should decide.
This guide is general information, not financial advice. Prices, subsidies and tax rules change; check the current position for the car you plan to buy.