The transformation brought by the usage of electric vehicles (EV) in India goes beyond just driving; it is also a new way of spending. New and seasoned car buyers tend to ask the same question, “Will an EV cars actually help me save money in the long run?”. Based on research done in 2025, the answer is a reconfirmed yes for most people. However, the driving patterns, charging stations, and the car you are switching from do make a difference. We break down EV spending and savings, and talk about the considerations.
1. Lower Operational Expenses: Electric vs Petrol/Diesel
The use of an electric vehicle to spend is cheaper compared to petrol or diesel vehicles.
Home charging, for the most part, sits between ₹6-₹10 per kWh. Most electric vehicles operate efficiently at 0.8-1.5 per kilometer. Compare this to the ₹6-10/km diesel and petrol cars charge, which is less than the 0.8-1.5 reimbursement. For starters, diesel SUVs charge more than 100/litre, making this a more economical choice.
In terms of driving in urban settings, using electric vehicles can result in a savings of up to 90000 in terms of fuel, compared to petrol cars.
2. Lower Maintenance Costs
Electric vehicles (EVs) have less maintenance to handle like no exhaust systems, no fluids, engines, and significantly reduced need for brakes because of regenerative braking systems.
EVs save money not only for maintenance, but also for servicing. Comparing to ICE vehicles, servicing EVs reduces spending by as much as ₹10,000 to ₹20,000.
Costs are decreased by unexpected repairs and servicing visits.
- Government spending on EVs, and encouragement for buyers with subsidies and rewards
- GVs have been marketed for a given time, therefore many offers and rewards are available:
- 0-1.5L purchase subsidies,
- 0-195 per year on administration fees,
- 0-yes for more spending on home charger rewards.
These incentives reduce your upfront cost and let you recover your investment faster.
In 2025, EVs have better resale value than before with backed warranty like 7-8 years. With better infrastructure, resale value is sustained by more buyers in the used market.
EVs have become more reliable with depreciation. Vehicles like Tata Nexon and Punch have less depreciation than ICE vehicles, and great demand sustains resale value.
3. Total Cost of Ownership: Real Example
Let’s compare a typical scenario for someone in a major Indian city:
Tata Nexon EV vs. Petrol Compact SUV (15,000 km/year for 6 years):
| Cost Item | Tata Nexon EV (₹) | Petrol SUV (₹) |
| Energy/Fuel | 75,000 | 540,000 |
| Maintenance | 36,000 | 90,000 |
| Road Tax/Fees | 1,500 | 30,000 |
| Incentive Avail. | -100,000 | 0 |
| Total (6 yrs) | ₹112,500 | ₹660,000 |
Assuming typical urban use, home charging, and periodic fast charging for highway trips. Battery replacement is not included as modern batteries are covered by warranty.
Result: Even after a higher initial sticker price, the Nexon EV owner saves well over ₹400,000 in 6 years—before resale, and without factoring reduced pollution/traffic perks.
4. When Might Savings Be Smaller?
- Driving very little per year: If your annual mileage remains under 5,000 kilometers, the time it takes for you to recoup your investment costs increases.
- City driving with frequent highway fast-charge stops: A reliance on costly highway fast charging (₹18–₹25 per kWh) is not ideal for city driving, although it may be a necessity during longer city-centric trips.
- Slow charging in rural areas: If access to home charging is not possible and you have to rely on slow public chargers, the financial benefits diminish.
Ev’s Additional Utilities and Advantages
- Environmental sustainability: The electric vehicles are eco-friendly compared to traditional vehicles as they have lesser tailpipe emissions.
- Driving an EV is more pleasant: Traditional vehicles generate a fair bit of noise and vibration. Compared to these vehicles, electric vehicles are quieter and more comfortable.
- Protecting the investment: EV-friendly urban policies mitigate costs through congestion fees, premium EV parking, and these policies are expanding.
Final Verdict
The trend is clear, almost any EV focused Indian, even in 2025, has the opportunity to benefit financially over the long haul because of cheaper fuel and lower maintenance costs combined with steady government incentives.
With a growing selection of EVs available, improved charging infrastructure, and the extended lifespan of car batteries, the switch to electric vehicles is advantageous not just for the environment but even more so from a financial perspective.
When the conditions of daily commute and home charging access or city incentives are met, the annual savings can be multiplied for drivers.
1. Are EVs more expensive to buy upfront?
Most EVs still cost more than petrol/diesel models at the time of purchase, but subsidies, lower running and maintenance costs usually offset this after 3–5 years of ownership.
2. How much can I save in 5 years by owning an EV?
Even for a mid-range compact EV, you’re likely to save ₹2–3 lakh compared to petrol models over 5 years with normal city use and home charging.
3. What about battery replacement?
Modern EVs offer 7–8 year/160,000km battery warranties. By the time a replacement is needed, battery prices will likely have dropped and warranties often cover major failure.
4. Does insurance for EVs cost more?
Slightly higher premiums in some cases, but this is offset by fuel and maintenance savings, and insurance competition is increasing as EVs become mainstream.
5. Can I get benefits from solar or off-peak charging?
Absolutely, those with rooftop solar or who charge at night (off-peak rates) can drive at minimal energy cost.