Is Electric Cars Value For Money?

Buying a Car is always been a very difficult task for all of us. Because there are multiple options available in the market.

If you are planning to buy a new car right now, you might be having the following questions in your mind:

1) Which manufacturer should I go for?

2) From that manufacturer, Which Car should I buy?

3) Which Model of that particular Car should I select?

And many more...

Deciding whether should I buy a Petrol car or a Diesel car, is also a very challenging task. Isn't it?

Till now, We had fuel options like Petrol, Diesel, and CNG. But now we will have to think about one more option, and this one is something Interesting. YES, That's an Electric Car.

So, one more option and one more confusion!!

Now let's come to the point.

So should I buy an Electric Vehicle or a Conventional Vehicle(Petrol/Diesel)?

Many factors we need to consider before we Select one of these.

1) Vehicle Price - CV Wins here

2) Vehicle Running Cost per Liter - EV Wins here

3) Vehicle Maintenance Cost - EV Wins here

4) Refilling or Charging time - CV Wins here

5) Availability of Refilling stations - Again CV Wins here

6) Environment - EV is way better here

7) Government Benefits on Buying Vehicles - EV has more Benefits from Government Schemes 

Have you decided which one you will buy? - No? No issues let's go into some details.

We will consider the first two factors in the above list and see if we should buy Electric Car or Conventional Car?

1) Vehicle Price

We will take the same Model of one company available in CV and EV both variants.

Tata Motors Nexon XZ+

Petrol variant On Road Price: Around Rs 11,00,000/-

Electric variant On Road Price: Around Rs 17,00,000/-

So the price difference is around Rs 6L

Note: If the Central or your state government is providing any subsidy on Electric Vehicles, you can subtract that amount from 6L.

2) Running cost

i) Considering Below values associated with Electric Vehicles

- Current Petrol Price: Rs 100/Liter,

- Car Mileage: 18 KM/L

CV Running Cost per KM: Rs 5.56/-

ii) Considering Below values associated with Electric Vehicles,

- Electricity Cost Per Unit(At your Home): Rs 6/-

- Car Battery Size: 30 kWh

- Car Maximum Range on Full Charge: 250KM (Company Claim 320KM) 

EV Running Cost per KM: Rs 0.73/- (😱 - Yes, this is True)

Now let's assume your average monthly running of Four Wheeler is: 2500 KM

So if we use the above factors and Calculate how much one can save on EV,

Saving from running cost on EV per Year = Rs 1,46,766/-

Saving from running cost on EV after 3 Years = Rs 4,40,298/-

Saving from running cost on EV after 5 Years = Rs 7,33,830/-

Conclusion-1: We are paying Rs 6L extra while buying Car but if your monthly running is more you can recover that amount after around 4 to 4.5 Years. Still worth buying!

Now let's assume your average monthly running of Four Wheeler is: 500 KM

Saving from running cost on EV per Year = Rs 30,953/-

Saving from running cost on EV after 3 Years = Rs 92,859/-

Saving from running cost on EV after 5 Years = Rs 1,54,765/-

Conclusion-2: So if your monthly running is less, you can recover the extra amount you are paying for EV after around 19 Years. That is too long. Better to go with Conventional Car!

Let's take one more scenario,

Consider a subsidy amount of 1.5L and your monthly running of 1500 KM

So price difference will become Rs 4.5L

And this is what you can save on EV every year(for 1500 KM/Month)

Saving from running cost on EV per Year = Rs 88,859/-

Saving from running cost on EV after 3 Years = Rs 2,66,577/-

Saving from running cost on EV after 5 Years = Rs 4,44,295/-

Conclusion-3: With 1500 KM per month running, you can recover the extra amount in around 7 Years. Still not good but not bad too.

Note: There is a subsidy of 1.5 Lakh Rupees from the Central Government and Few State Governments have also announced subsidies over and above Central Government Scheme.

So you can take benefits of both.

I hope you get little clarity now. 

Important:

If you want to use the calculator we have used to calculate saving on EV with your own values like Car Mileage, Electricity Cost, Car Price, Monthly Running, and all, you can use our Android Application "EV Guide"

Search "EV Guide" in Android Play Store or just click on the below link.

EV Guide: https://play.google.com/store/apps/details?id=com.myapp.evguide

Let us know if you have any questions in the comment section.

Thanks,

Team Capital Tech

#ElectricCars #ValueForMoney #NexonEV #AltrozEV #TigorEV #KonaEV #MGZSEV