How much money Can you save with Electric Vehicle in India?

Cost Saving on Electrical Vehicle in India 

With rising fuel prices and a growing emphasis on sustainability, electric vehicles (EVs) are becoming a popular choice among Indian consumers. But beyond environmental benefits, one of the biggest attractions is the potential cost saving. So, how much you can really save by switching to an EV in India? Let's Break it down.

1. Fuel Cost Savings:

The most immediate and significant saving with an EV comes from reduce fuel costs.

A) Cost of Petrol: As of 2025, petrol prices in India hover around Rs-112 per liter.

B) Cost per km (Petrol car): A petrol car with an average milage of 15 km/liter cost around 7.5 Rs / Km.

C) Cost per km (Electric Car): An EV consumes about 1.5 units of electricity per Km. With electricity rates at about 7 Rs. per unit, cost per km is just 1.05 Rs.

Annual Driving Distance: 15,000 Km

A) Annual Fuel Cost (Petrol car): 1,12,500 Rs.

B) Annual Electricity Cost (EV): 15,750 Rs.

Annual Savings: 96,750 Rs.

2. Maintenance Cost Savings:

EVs have fewer moving parts than Internal Combustion Engine Cost (ICE) vehicles, which results in significantly lower maintenance costs.

A) No oil changes,

B) Fewer mechanical parts mean fewer chances of breakdowns.

C) Brake wear is reduced thanks to regenerative breaking

Estimated Annual Maintenance Savings: 20,000-30,000 Rs.

3. Government Incentives and tax Benefits:

The Indian government provides several in incentives for EV buyers:

A) FAME II subsidy: Discounts on the purchase price of EVs.

B) State-level Subsidies: Additional support from state governments.

C) Tax Benefits: up to 1.5 lakh tax deduction on interest paid on EV loans under section 80EEB.

Potential Savings: 60,000-1,00,000 Rs. (One-Time).

4. Total Cost of Ownership (TCO):

While EVs may have a slightly higher upfront cost, the long-term ownership costs are substantially lower. here a simplified comparison over 5 years:

Vehicle Type       Upfront Cost       Fuel/Charging    Maintenance      Total 5 Year Cost

                                   (Rs.)                     (Rs.)                  (Rs.)                        (Rs.)

Petrol Car            7,50,000                  5,62,500             1,00,000                    14,12,500

Electrical              9,00,000                78,750                 50,000                       10,28.750

5-Year Savings: 3,83,750 Rs.

Conclusion:

Switching to an electrical vehicle in India isn't just an eco-friendly move-it's also a financially smart one. From slashing fuel and maintenance costs to enjoying government incentives, EVs offer considerable long-term savings. If you are someone who drives regularly and plans to keep your vehicle for several years, an EV can be a wise investment for your wallet and the planet.