How Electric Vehicles Save You Money

Utsav Chaudhary|Updated on:03-Sep-2025 05:08 AM

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ByUtsav Chaudhary

Updated on:03-Sep-2025 05:08 AM

1,458 Views

Electric vehicles aren’t just eco-friendly—they’re cost-efficient too. This article explores how making the switch to EVs can lighten your financial burden while contributing to a greener future.

How Electric Vehicles Save You Money — Electric cars cut costs with cheaper electricity, lower maintenance, and fewer repairs. Subsidies, reduced GST, and tax benefits make ownership affordable.

: Your Ultimate Guide to Buying Electric Car in India

India’s automotive market is shifting gears as more manufacturers introduce zero-emission electric cars. With advancements in battery technology, expanding charging infrastructure, and strong government incentives, switching to an EV is now easier than ever. For Indian drivers, the benefits go beyond sustainability—electric vehicles offer lower running costs, reduced maintenance expenses, and significant savings compared to petrol and diesel cars. As the nation moves toward cleaner mobility, owning an electric car is not just a trend but a cost-effective and future-ready choice.

Never Fill Up Again

Rising fuel prices are a constant worry for Indian drivers, but with an electric car, you can leave petrol pumps behind. Charging an EV at home is usually far more affordable than filling a tank with petrol or diesel, and the savings add up quickly over time.

For those with shorter commutes, a regular 15-amp household socket may be enough to keep the battery topped up. However, if you drive longer distances, installing a faster 7.2 kW AC home charger (Level 2 equivalent) can make daily charging much more convenient. The cost of a home charging unit in India can range from ₹30,000 to ₹90,000, excluding installation charges. Some state governments and utility providers also offer subsidies or rebates to ease this expense.

Public charging stations are expanding across major Indian cities and highways. Prices vary depending on the provider and charging speed—slow AC charging is usually billed per unit of electricity consumed, while DC fast charging may be priced higher but can recharge up to 80% in under an hour. With networks like Tata Power, Ather Grid, and Fortum growing rapidly, EV drivers have more flexibility than ever before.

Reduced Maintenance Costs of EVs

Electric cars in India may seem premium at first glance, but their ownership costs tell a different story. Unlike petrol or diesel cars that require regular oil changes, filter replacements, and engine servicing, EVs have fewer moving parts and no combustion system. This makes them far cheaper to maintain in the long run.

On average, the annual maintenance cost of a petrol car in India can range between ₹10,000 and ₹15,000, depending on usage. For an EV, it usually stays around ₹4,000–₹6,000, covering essentials like tyre rotation, brake pads, and software updates. Over a period of 8 years, this translates to:

Petrol Car Maintenance: ₹80,000–₹120,000
EV Maintenance: ₹32,000–₹48,000

That’s a savings of nearly ₹50,000–₹70,000 on service alone.

EV batteries—mostly lithium-ion—are built to last 8–10 years or up to 1.6 lakh km. While a replacement battery could cost anywhere from ₹5–7 lakh (model-dependent), most automakers in India (like Tata, MG, and Hyundai) provide 8-year or 160,000 km battery warranties. This ensures most owners won’t face that expense during typical ownership.

When combined with the lower cost of electricity versus petrol/diesel, EVs not only help reduce pollution but also make financial sense for Indian car buyers planning long-term ownership.

Government Incentives and Subsidies for EVs in India

Buying an electric vehicle in India not only reduces your fuel costs but also comes with a range of government-backed benefits. Under the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, buyers of electric cars and two-wheelers can avail subsidies that reduce the upfront purchase price. For example, incentives are provided based on the size of the battery pack, typically around ₹10,000 per kWh, with caps depending on the vehicle category.

In addition, several state governments—including Delhi, Maharashtra, Gujarat, and Telangana—offer their own EV subsidies, road tax waivers, and registration fee exemptions. Some states even provide financial support for installing a home charging station, further reducing ownership costs.

EV buyers in India can also benefit from income tax deductions. Under Section 80EEB of the Income Tax Act, individuals can claim up to a ₹1.5 lakh deduction on interest paid on loans taken to purchase an electric vehicle.

Together, these central and state-level incentives significantly lower the cost of owning an EV in India, making it easier for buyers to shift from petrol or diesel cars to cleaner mobility solutions.

Time-Saving Benefits of Electric Cars

Owning an electric car in India doesn’t just save money—it saves time too. Instead of making repeated trips to petrol pumps, you can simply plug in your EV at home overnight, just like charging your smartphone. With India’s public charging infrastructure growing rapidly in cities like Delhi, Bengaluru, Mumbai, and Hyderabad, it’s becoming easier to top up your battery at malls, offices, and even highway pit stops while you go about your day.

Electric vehicles also reduce the time spent at service centers. Since EVs have fewer moving parts and don’t require oil changes, your visits to the mechanic are minimal. Apart from basic tasks like tyre rotations and brake checks, EVs need far less routine maintenance compared to petrol or diesel cars—giving you more time on the road and less in the workshop.

Some Indian states are even offering EV-friendly traffic benefits, such as green number plates that allow smoother toll access and future eligibility for dedicated lanes. For daily commuters in congested cities, such measures could significantly cut travel time.

What about Used Electric Cars?

The future of mobility in India is electric—and that includes the used electric car market, which is gaining strong momentum. With rising fuel prices, stricter emission norms, and government incentives for EV adoption, more Indian buyers are exploring second-hand electric cars as a smart and affordable alternative to petrol or diesel vehicles.

One of the biggest advantages of buying a pre-owned EV in India is cost savings. Electric cars depreciate faster than conventional vehicles, which means buyers can often get a well-maintained EV at a fraction of its original price. At the same time, EVs come with lower maintenance costs, since they have fewer moving parts, no engine oil, and longer-lasting components. Most models also include battery warranties of up to 8 years or 160,000 km, offering peace of mind to second-hand buyers.

With the expansion of EV charging stations in India and the rise of certified resale platforms, the resale ecosystem for electric cars is becoming more reliable and transparent. Battery health checks, charging history, and range reports are now available, helping buyers make informed decisions.

The future of India’s pre-owned car industry is undoubtedly electric—affordable, sustainable, and future-ready.

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