In recent years, the automotive sector has seen a notable shift towards electric vehicles (EVs). This change is driven by a variety of factors, including environmental consciousness, technological advances, and government incentives. It is often said that an electric car is more affordable to maintain as compared to a conventional car. But is it true? And what factors affect the running costs of an electric vehicle? In this guide, we’ll calculate the cost of owning an electric car in India.
Factors affecting the electric car ownership cost
- Vehicle price
- Car insurance cost
- Maintenance cost
- Car efficiency
- Driving distance
Ownership cost of an electric car
To calculate the running costs of an EV, we will pick the base variant of Tata Nexon EV Prime XM. You will get clarity on the costs involved in purchasing an electric vehicle.
- Tata Nexon EV Prime XM price (on-road): Rs 16 lakhs
- Car insurance cost: Rs 65,000 (included in the on-road price)
It is important to note that there is no need to pay registration fees when buying an electric car as EVs are exempted from registration charges.
Once you have made the purchase, the next aspects to look for are the fuel price, driving range, charging cost and maintenance cost.
The Tata Nexon EV Prime offers an ARAI-certified range of 312 km on a full charge.
Suppose you travel a distance of 10,000 km per year.
The Nexon EV Prime consumes 20 units of electricity for a full charge. We assume an average cost of Rs 7 per unit of electricity.
So, the EV consumes 641 (10,000 x 20/312) units of electricity to travel a distance of 10,000 km.
Therefore, the total fuel cost (electricity cost) for the first year is Rs 4,500 (641 x 7).
An electric car is not made up of complex mechanical components. Therefore, service and maintenance costs will be lower.
Suppose the service/maintenance cost for the first year is Rs 3,000.
So the running cost of the electric vehicle in the first year is Rs 16,07,500 (16,00,000 + 4,500 + 3,000).
Also Read: Best Electric Cars In India – Top Picks For 2024-Check Now!
Costs involved in EV ownership for five years:
1st year:
- Insurance cost: Rs 65,000*
- Maintenance cost: Rs 3,000
- Charging cost: Rs 4,500
- Total Cost: Rs 7,500
2nd year:
- Insurance cost: Rs 62,000
- Maintenance cost: Rs 5,000
- Charging cost: Rs 4,500
- Total Cost: Rs 71,500
3rd year:
- Insurance cost: Rs 57,000
- Maintenance cost: Rs 6,000
- Charging cost: Rs 4,500
- Total Cost: Rs 67,500
4th year:
- Insurance cost: Rs 53,000
- Maintenance cost: Rs 8,000
- Charging cost: Rs 4,500
- Total Cost: Rs 65,500
5th year:
- Insurance cost: Rs 48,000
- Maintenance cost: Rs 8,000
- Charging cost: Rs 4,500
- Total Cost: Rs 60,500
Total Cost for 5 years:
- Insurance cost: Rs 2,20,000
- Maintenance cost: Rs 30,000
- Charging cost: Rs 22,500
- Total Cost: Rs 2,72,500
*Since the insurance cost for the first year is included in the EV’s on-road price, it has been excluded from the above calculation.
Total ownership cost for 5 years
Now that we have all the calculations for the 5 years of owning the Tata Nexon EV Prime, we can find out the overall ownership cost by adding all the expenses.
Total ownership cost = On-road price + Insurance cost + Service/Maintenance cost + Charging cost
Total ownership cost = Rs 16,00,000 + Rs 2,20,000 + Rs 30,000 + Rs 22,500
Total Ownership Cost = Rs 18,72,500
Also Read: Self-Driving Electric Cars In India – Future Prospects
