How does Electric Vehicle save you money, than the Pricey Fuel Guzzlers?

Electric Vehicles have been around for not so long ago. But has managed to be the ultimate buying choice for a lot of people, and that lot is increasing day by day, not only in India, but globally. And who knows, this could be arguably the rightful heir to the 'Automotive Dynasty'.

This transition has not only been accepted for its sleek & smooth designs with silent, yet insanely quick accelerations. But also has to do a lot with the personal yield impact as well as its impact on the environment.

Considering the Lower Running Costs, Tax & Financial Benefits, Government Incentives, Zero Emission and Easy to Maintain factors aligned with this vehicle category, you wouldn’t be surprised by the growth in demand it has accomplished.

How well have EVs performed over the years?

In the year 2022 itself, the overall sales of Electric Vehicles increased by 210% year-on-year. Where the majority of sales was driven by the 2-wheelers category, selling 6,24,129 units with a remarkable sales growth of 306.07%. Along with that, there were 3,38,492 units sold under the 3-wheeler category, and 32, 844 units sold under the four-wheeler category. Crushing the 'Million Units Sale’ milestone for the first time.

In comparison with the other fuel alternatives, where the sales of Diesel vehicles increased by 16.21% y-o-y, Petrol vehicles were up by 9.4% y-o-y and CNG grew by 61% y-o-y. This data is according to reports on Vahan—a web portal managed by the Ministry of Roads, Transport and Highways.

Now, we will walk you through each aspect that can justify this emerging trend of EV and more importantly how it could save you the ‘big bucks’.

How to calculate your savings?

Figuring out how much an EV will cost you to own, drive and to maintain it, can be really complex. This might affect the decision making ability while planning to buy a vehicle for yourself. But, it is worth doing the math before making a decision for such a purchase, as you understand how distinctive it can be in the long run.

Purchasing Cost- When you compare the cost of Electric vehicle and fuel-powered vehicle, you’ll notice that there’s a big difference in the starting prices in the same segment. This has to do with what either of these vehicle types has to offer you, both financially and mentally.

When we talk about finance, the fuel-powered vehicle has a lower price point upfront than the EVs available in the same segment. But, on the flip side, EVs will cost you wayyy less in the long run. That is something that you’ll recognize once you start using an EV as per your driving regime, and you’ll notice an enormous difference with the running cost and while maintaining the vehicle (explained further below).

Subsidies- Along with the long term benefits, you could officially enjoy some of the best financial aid, provided by the Government itself. Some benefits like Zero Road Tax, Zero Registration Fees, Purchase Incentives and many more (explained further below), makes the purchasing transaction even more delightful.

Running Cost- As you already know, EVs use electricity to charge its batteries that run the vehicle. The prices of electricity are quite steady and cheap as compared to the volatile and yet very expensive alternative fossil fuels, like petrol and diesel. In the times where fuel prices have reached its highest point ever since, the cost of electricity has been comparatively substantial and even easily accessible, with the help of renewable resources like solar panels, wind turbines and more.

Charging EVs- Each EV has a certain range of how much it can travel with full battery capacity or even in a short and quick charge. With that being said, the number of EV charging stations have been swiftly growing, to keep up with the nimble growth in the demand of EVs. That includes the public charging stations, availability of free charging stations in commercial and residential societies, and charging stations introduced by the OEMs itself, like Tata.

You could also charge your vehicle at home, by installing solar panels at your place, which would further reduce your running cost. With electricity being low at cost and so easily available, you could worry less to recharge it, according to your usage. And eventually influence your lifestyle figuratively.

Maintenance Cost- Electric Vehicles have significantly low maintenance cost, as compared to the fuel- powered vehicles. As they do not have many moving parts like of engine, complex transmissions, fewer auto lubricant usage, and fuel or exhaust systems- they cost less to service and keep it in a good condition.

In addition, with the ‘regenerative braking’ available in EVs, it seizes the energy that would be otherwise lost during braking. This makes the brake system last longer than the fuel- powered vehicles. All these makes the EV cut up to 50% of repair and maintenance cost on an average, as compared to fuel cars.

Warranty- As the EVs are getting better technically and by using more advanced technologies, it makes it more reliable as well. With that set apart from the alternatives, EVs offer the most generous warranties on parts like batteries and electric drivetrain. With brands offering 8 to 10 years of warranty for its products, you could literally sit back and cruise in your EV with utmost relief. To find out more on the top EVs with best in class battery life and warranty, check out our latest article-

https://www.carbike360.com/news/top-6-evs-with-longest-battery-life-and-warranty-in-india

How does the Government support you with owning an EV?

The Government of India (GOI) recognizes the necessary swift in the automotive industry. With EVs being beneficial in every aspect like being better for the environment, lower cost to maintain and even better yielding commerce, the GOI has respectively taken a lot into consideration.

The GOI is offering hefty incentives, subsidies and tax exemptions for owning an EV. This will result in better reach to the masses and shall advance the decision making process to own a vehicle, in any region of the country.

The Central Government offers subsidy programmes under the national FAME-II scheme, for supporting and promoting electric mobility. Currently in the 2nd phase of implementation. The incentives offered in the scheme are as follows:

| Total Approximate Incentives | Approximate Size of Battery ||:--------------------------------------------------------------------:|:---------------------------:|| Two wheelers: Rs 15000/- per kWh up to 40% of the cost of Vehicles. | Two wheelers: 2 kWh || Three wheelers: Rs 10000/- per kWh | Three wheelers: 5 kWh || Four wheelers: Rs 10000/- per kWh | Four wheelers: 15 kWh || E Buses: Rs 20000/- per kWh | E Buses: 250 kWh |

The further national incentives are as follows:

• Purchase Incentives on the cost of EV.
• Coupons that can be reimbursed later.
• Interest rate subvention if taken a loan.
• Road Tax is completely waived off.
• Individual Income Tax Benefits.
• Registration fee on new EV purchase is waived off.
• Availability of interest free loans
• Top-up subsidies
• Incentives provided on de-registering old petrol or diesel vehicles.
• Special Incentives on electric 3- wheelers.

Not only the central government, but many state governments have gone an extra mile to provide financial benefits to its citizens. With states like Delhi, Haryana and Maharashtra, providing the highest subsidies in the country.

The State-wise incentives for Electric 2-wheelers are as follows:

| State | Per kWh of battery capacity | Max subsidy | Road tax exemption ||:-----------:|:---------------------------:|:-----------:|:------------------:|| Delhi | Rs 5,000 | Rs 30,000 | 100% || Maharashtra | Rs 5,000 | Rs 25,000* | 100% || Meghalaya | Rs 10,000 | Rs 20,000 | 100% || Gujarat | Rs 10,000 | Rs 20,000 | 50% || Assam | Rs 10,000 | Rs 20,000 | 100% || Bihar | Rs 10,000 | Rs 20,000 | 100% || West Bengal | Rs 10,000 | Rs 20,000 | 100% || Rajasthan | Rs 2,500 | Rs 10,000 | NA || Karnataka | No | No | 100% || Punjab | No | No | 100% |

The State-wise incentives for Electric 4-wheelers are as follows:

| State | Per kWh of battery capacity | Max subsidy | Road tax exemption ||:-----------:|:---------------------------:|:------------:|:------------------:|| Maharashtra | Rs 5,000 | Rs 2,50,000* | 100% || Delhi | Rs 10,000 | Rs 1,50,000 | 100% || Gujarat | Rs 10,000 | Rs 1,50,000 | 50% || Assam | Rs 10,000 | Rs 1,50,000 | 100% || Bihar | Rs 10,000 | Rs 1,50,000 | 100% || West Bengal | Rs 10,000 | Rs 1,50,000 | 100% || Odisha | NA | Rs 1,00,000 | 100% || Meghalaya | Rs 4,000 | Rs 60,000 | 100% || Kerala | No | No | 50% || Karnataka | No | No | 100% |

To understand more about the state policies and subsidies, you can refer to the official government website belowhttps://e-amrit.niti.gov.in/state-level-policies