Electric Vehicles in India: A Deep Dive into Costs, Benefits, and Challenges

New Delhi, April 29, 2025:
Electric Vehicles (EVs) are gaining popularity in India, with sales reaching 100,000 units in 2024, representing just 2.5% of total car sales. The government aims for 30% EV sales by 2030, and automakers like Tata, Mahindra, and new entrants like VinFast plan to launch several EV models in 2025. Despite this growth, key questions remain about the costs and charging infrastructure.

Cost Savings: Fuel and Maintenance

EVs offer significant savings on running costs. With electricity costing ₹1–1.5 per km, compared to ₹8–10 per km for petrol cars, high-mileage drivers can recover the higher upfront cost through fuel savings in just a few years. Maintenance is also cheaper due to fewer moving parts and no oil changes. Annual maintenance can be up to 75% cheaper than petrol cars. However, battery replacement, costing ₹3–4.5 lakh, remains a long-term expense, though most manufacturers offer warranties of 5–8 years.

Government Incentives and Policies

The Indian government has been promoting EV adoption through various schemes. All new petrol stations are required to offer alternative fuels, including EV charging, and over 10,000 stations now provide EV charging. State-level incentives, such as tax exemptions and subsidies, are also available, with Delhi offering up to ₹1.5 lakh in subsidies for the first 1,000 private EV buyers.

Hidden Costs

Additional costs include home charging setups, which can range from ₹30,000 to ₹50,000, and insurance premiums, which are 15–25% higher for EVs due to expensive batteries. Resale value is another consideration, with used EVs depreciating faster than petrol vehicles, retaining only 10–15% of their value after 5–7 years.

Charging Infrastructure and Long-Distance Travel

Charging time remains a key issue. Fast DC chargers can charge an EV up to 80% in 30–60 minutes, while home chargers take 6–8 hours for a full charge. Larger cities have better charging access, but smaller towns still lag behind. For daily commutes under 200 km, EVs are ideal, but long-distance travel requires careful planning.

Conclusion

EVs offer clear savings on fuel and maintenance but come with higher upfront costs and additional expenses for charging setup and insurance. Government incentives and expanding charging infrastructure make EVs a viable option for city commuting. For long trips, careful planning is essential. Overall, EVs are a great choice for daily use and are expected to become more mainstream as infrastructure improves.