Should I buy Electric Car or Conventional Fuel(Petrol/Diesel) Car?

Car buying is always a very difficult task because of the multiple choices available.

1) Which company should I select?

2) Which Car of the particular company I should Buy?

3) Which Model of particular car I should Buy?

And many more...

We had options like Petrol, Diesel, and CNG cars But now we need to think about one more option before buying a car. And That is Electric Cars.

Now the question is,

So should I buy an EV or a CV(Conventional Vehicle) Car?

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 EV or CV.

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 your state government is providing any subsidy on Electric Vehicles, we 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.

I hope you get little clarity now. 

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 and download the one from Developer: "CAPITAL  TECH"

We will provide the application link soon.

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

Thanks,

Team Capital Tech