The Cost Benefits of EVs – Empowering India to Go Electric
Pune, 30th April 2025: Electric vehicle (EV) ownership in India is gaining momentum, driven by the clear cost advantages it offers over traditional internal combustion engine (ICE) vehicles. Despite the slightly higher initial acquisition cost, the long-term benefits make EVs a smart choice for buyers seeking sustainable and cost-effective mobility solutions. TATA.ev leads the charge in bringing price parity between EVs and comparable ICE models. With lower running and maintenance costs, EVs are the future and redefining the economics of car ownership.
According to the VAHAN data, the electric passenger vehicle segment has seen a remarkable surge, with retail sales reaching over 89,000 units in CY 2024, marking a 22% increase from the previous year. This growth reflects a broader trend in the EV market, which saw a total of 19 Lakh units sold, representing a 27% overall increase. Besides its economic benefits, this rising consumer interest in EVs is also driven by the expanding support from both manufacturers and government initiatives.
The Financial Edge of EVs
A closer examination of the costs associated with EV ownership reveals substantial savings across multiple fronts. The total acquisition cost for models like the Nexon.ev is becoming increasingly competitive, as battery prices continue to decline. When compared to equivalent petrol, diesel, hybrid, and CNG vehicles, the Nexon.ev offers a favorable cost proposition, making EVs more accessible to a broader range of consumers.
Beyond the initial purchase, the ongoing cost benefits of EVs become even more apparent. Charging an EV is substantially more economical than fueling an ICE vehicle. Additionally, lower maintenance costs due to fewer moving parts further enhance the appeal of EVs as a cost-effective option. The integration of rooftop solar systems adds another layer of savings, allowing EV owners to achieve zero cost mobility and reduce energy costs by utilizing renewable energy for charging, making the shift to electric mobility even more advantageous.
The table below shows the difference in cost of acquisition of an EV as against an equivalent Petrol and Diesel vehicles in addition to the closest Hybrid and CNG powered vehicle on price:
| Model | Nexon.ev | Equivalent ICE Vehicle – Petrol | Equivalent ICE Vehicle – Diesel | Mid-size Strong Hybrid SUV[1] | Subcompact ICE Vehicle – CNG[2] [3] |
| ESP Price (₹) | 1,249, 000 | 1,169,990 | 1,309,990 | 1,843,000 | 1,209,500 |
| Registration | 8,160 | 140,398 | 183,398 | 227,941 | 102,845 |
| Other Charges | 13,090 | 11,699 | 13,099 | 18,930 | 12,095 |
| Insurance cost (₹) – First 3yrs | 56,995 | 55,813 | 60,966 | 62,594 | 48,684 |
| Insurance cost renewal after 3 yrs | 39,471 | 37,496 | 40,995 | 54,314 | 38,484 |
| Total Acquisition Cost | 1,327,245 | 1,377,900 | 1,567,453 | 2,152,465 | 1,373,124 |
EVs demonstrate significant acquisition cost savings compared to premium hybrid and CNG options, aligning with consumer priorities of affordability and sustainability.
Range and Fuel Costs Comparison
Another significant advantage of EVs is their efficiency and lower fuel costs. The mileage (range) and fuel costs for different vehicle types illustrate this point clearly:
| Model | Nexon.ev | Equivalent ICE Vehicle – Petrol | Equivalent ICE Vehicle – Diesel | Mid-size Strong Hybrid SUV | Subcompact ICE Vehicle – CNG |
| Mileage (kmpl) / km per kWh | 9.17 | 17.18 | 24.08 | 27.97 | 25.5 |
| Fuel Cost (Rs./unit) – Mumbai | 8 | 104.21 | 92.15 | 104.21 | 77 |
EVs stand out with their low per-kilometer energy cost, especially when compared to traditional fuels like petrol and diesel. This is a critical factor for consumers seeking to reduce their daily commuting expenses.
Understanding Cost of Ownership in Detail
One of the key advantages of owning an EV is the significant reduction in daily operating costs, which becomes evident when examining the granular details of fuel consumption and maintenance.
| Model | Nexon.ev | Equivalent ICE Vehicle – Petrol | Equivalent ICE Vehicle – Diesel | Mid-size Strong Hybrid SUV | Subcompact ICE Vehicle – CNG |
| Service & Maintenance costs (₹) | 4,000 | 6,000 | 6,000 | 6,000 | 6,000 |
| Average KM driven per day | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 |
| Total fuel consumed per day (L) | 5.45 | 2.91 | 2.08 | 1.79 | 1.96 |
| Daily fuel cost | 43.62 | 303.29 | 191.34 | 186.29 | 150.92 |
| Annual fuel cost | 15,703 | 1,09,184 | 68,883 | 67,064 | 54,332 |
With a daily fuel cost as low as ₹43.62 for the Nexon.ev, compared to ₹303.29 for a petrol vehicle, and ₹191.34 for its diesel powered counterpart, the financial benefits of owning an EV accumulate quickly. This translates to an annual fuel cost of only ₹15,703 for the Nexon.ev, compared to ₹1,09,184 for petrol, ₹68,883 for diesel, and ₹54,332 for CNG. Combined with lower maintenance expenses, EVs offer a cost-effective solution that not only helps save money but also enhance the overall ownership experience.
Long-term Running Cost Benefits
The annual running cost of the Nexon.ev is significantly lower compared to other vehicle types. Over five years, this difference becomes even more pronounced with the Nexon.ev totaling ₹1,77,458, compared to ₹6,50,912 for petrol, ₹4,56,404 for diesel, ₹4,73,947 for hybrid, and ₹3,78,625 for CNG.
| Model | Nexon.ev | Equivalent ICE Vehicle – Petrol | Equivalent ICE Vehicle – Diesel | Mid-size Strong Hybrid SUV | Subcompact ICE Vehicle – CNG |
| Total annual running cost | 19,703 | 115,184 | 74,883 | 73,064 | 60,332 |
| Total running cost over 5 years | 177,458 | 650,912 | 456,404 | 473,947 | 378,625 |
This long-term financial advantage offers consumers a sustainable and budget-friendly alternative to ICE vehicles.
TATA.ev continues to dominate the EV market with over 60 percent market share, achieving sales of over 2 Lakh units in 4 years. It leads the charge with the largest electric vehicle portfolio in India, comprising the Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, and the Curvv.ev ranging from ₹7.99 Lakh to ₹22 Lakh. By continuously innovating and enhancing its offerings, TATA.ev ensures that transitioning to electric vehicles proves to be a smart and rewarding choice for consumers.
[1] Cheapest Strong Hybrid in the Market chosen for representation
[2] Higher variant chosen to match the cost gap between MT and AMT
[3] OEMs typically don’t offer a CNG option in their top variants
