Is Now the time to go Electric?
Nitin Pokharna
Co-Founder & CEO @Stockz11 (400k+ downloads) - We're hiring Financial Educators for our new Investment Learning App
Developed countries some years back and India in 2021 have jumped onto the EV bandwagon. Everyone around is looking to buy an electric vehicle; that may be a car or a scooter. Everyone is eager paying the cheaper electricity charges against the burgeoning fuel bills.
IS BUYING AN EV REALLY GOING TO SAVE YOU MONEY? SCROLL DOWN TO KNOW!
There are several factors to be considered while deciding on the purchase; the price of the vehicle, RTO cost; Insurance Costs; daily running; costs of fuel; battery replacement costs etc. etc. Here is a comparative chart of different cost aspects involved:-
(Working based on Daily Running of 40 Km's and the car considered is Tata Nexon since that is the most popular EV Variant currently)
While Insurance of an Electric Vehicle is expensive; the RTO taxes are negligible! While central government subsidy of 1.5 Lacs and Maha Govt subsidy of 1 Lacs is available today – it might not be available tomorrow. Running cost for a petrol car is almost 4.5 times that of an Electric one!
Following are the important factors to be considered while making the decision:-
1) Use within the city or inter-city?
2) Future costs of fuels/Lithium-ion batteries
3) Availability of Charging Infrastructure
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4) Impact on Environment and Climate Change
5) Driving Pleasure
6) Subsidies & Tax benefits Available
While the above are the important factors while considering buying an EV the most relevant factor to be considered while admeasuring the economic viability is the daily running of the vehicle.
EV VS PETROL VS DIESEL
VERDICT - So from the economic perspective you should buy an Electric Vehicle only if your daily running is around 80 Kms. An electric vehicle is not saving money for everyone; it’s also a higher cash outflow at the onset :)
PS :- This piece is purely based on economic aspects and not considering the impact on the environment – which is absolutely priceless!
Note:- Drop me a DM if you want the readymade Excel Sheet to adjust figures to suit your use :)
WISH YOU ALL A WONDERFUL 2022! :)
Associate
2yVery Helpful Nitin :) I think EV vehicle will be more popular once charging stations are readily available across .Currently we don't have many variety EV vehicles and there is also scarcity of adequate charging stations across India...Environmentally it will be beneficial for sure
ISB and BITS Pilani Alumini | Co-Author | Precision machining | Thought Leader | Managing Partner at Globewin Group | EO Pune
2yThis was really helpful Nitin Pokharna!! Just a quick query: what’s your take on the amount of pollution created by all the three options?
Entrepreneur, Founder at AB Market Research & Analytics
2yEV may become competitive after ~3yrs
Engineer at Broadcom
2yThe article looks good but why is there a need of change of battery even after 5 years Tata gives a warranty of 8 years on the battery if I’m not wrong and that should take care of battery replacement in case it goes bad, right ?
Bringing Ather closer to you | Seasoned Sales & Marketing Strategist | Digital Transformation Expert | Business Growth Catalyst
2yNicely articulated !!! Thanks for sharing this with us Nitin Pokharna San