Introduction
As EV adoption grows in India and globally in 2025, many wonder if buying an electric vehicle actually saves money compared to a petrol car. While EVs often have higher upfront costs, lower running and maintenance costs can potentially offset this over time.
This post breaks down upfront costs, running costs, maintenance, resale, and government incentives to determine whether EVs or petrol cars save you more in the long run.
1. Upfront Cost
EVs:
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Generally higher initial price.
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Eligible for government subsidies and tax benefits in many regions.
Petrol Cars:
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Lower upfront cost.
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No subsidies, but wide availability and dealer discounts.
2. Running Costs
EVs:
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Electricity is cheaper per km than petrol.
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Charging at home during off-peak hours saves more.
Petrol Cars:
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Petrol prices continue to rise.
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Mileage varies by model, but running costs are consistently higher per km than EV charging.
3. Maintenance Costs
EVs:
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Fewer moving parts, no oil changes.
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Lower brake wear due to regenerative braking.
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Battery replacement needed after 7–10 years, but many warranties cover battery health.
Petrol Cars:
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Require regular oil changes, filter replacements, clutch maintenance.
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Engine repairs can be expensive over time.
4. Government Incentives
EVs:
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State and central subsidies reduce initial costs.
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Lower registration and road tax in many regions.
Petrol Cars:
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No government incentives.
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Standard taxes and registration fees apply.
5. Resale Value
EVs:
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Resale value improving with rising demand.
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Dependent on battery health.
Petrol Cars:
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Better-established resale market.
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Depreciation faster due to fuel cost concerns and potential bans in future.
6. Environmental Impact (Bonus Factor)
EVs:
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Lower emissions, especially when charged with green energy.
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Contribute to cleaner air and lower carbon footprint.
Petrol Cars:
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Higher emissions, contributing to pollution.
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Stricter norms may impact their viability in the coming years.
Real-World Example
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A petrol car costing ₹8 lakh vs an EV costing ₹12 lakh.
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Running cost per km: Petrol ~ ₹8/km, EV ~ ₹1.5/km.
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Annual running (15,000 km): Petrol = ₹1,20,000; EV = ₹22,500.
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Saving ~ ₹97,500/year on running costs alone, making up the upfront difference in 4–5 years.
FAQs
Q: Do EVs require special charging setups at home?
A: A regular 15A socket can charge an EV, but a dedicated home charger speeds up charging.
Q: How long does it take to recover the higher upfront cost?
A: Typically within 4–6 years depending on your annual driving distance and local electricity rates.
Q: Are EVs practical for long trips?
A: With expanding charging infrastructure, long trips are increasingly feasible with planned charging breaks.
Final Thoughts
While petrol cars are cheaper upfront, EVs save significantly on running and maintenance costs in the long run, making them financially beneficial if you plan to keep your vehicle for 5–7 years or more.
If you want to save money while contributing to a cleaner environment, EVs are increasingly the smarter choice in 2025.
Which would you choose? Let us know in the comments