How long is the prepayment for an EV? | Rare Techy

Currently, there are a limited number of EV four-wheelers available in the market, most of which are expensive models offered by the likes of Kia, Morris Garages (MG) Motors, Volvo and Hyundai. between. ₹20 million and ₹65 thousand. Some EV cars are cheap and Tata Nexon is mid priced ₹15 million and ₹20 lakh, Tata Tigor in between ₹12.5 lakh and ₹13.64, Tata Tiago starting at ₹8.49 lakh and Mahindra E-verito priced in between ₹9.13 million and ₹9.46 thousand.

However, to prevent the high cost up front, electric cars will be more economical than their gasoline counterparts in the long run. The running cost of EVs is only a fraction of fossil fuel-based vehicles. In addition, at the annual gasoline price, it is better, financially, to change it up front.

To evaluate how long it will take to pay for an electric car, Mint compared the cost of owning a Tata Nexon and Nexon EV Prime (see graph). Both cars are manufactured by the same company and have similar product categories.

Our calculations showed that, at an average annual trip of 17,000 kilometers (46km/day), it would take almost six years to pay off if you bought an EV.

Compared to gasoline cars, electric driving can save 85-90% on fuel costs, and this savings will take more time to pay off the high upfront cost of buying an EV. To realize this savings, our model shows that the owner of Tata Nexon will be released ₹6.92 lakh in petrol over six years (at current petrol prices), but the Tata Nexon EV owner spends less. ₹68,000 (ON WHAT) for the same period. The EV owner saves ₹6.24 lakh in fuel cost alone.

In addition, EVs have lower service and maintenance costs because they have fewer moving parts than gasoline cars, and its main component, the battery, is maintenance-free. We did not include the cost of replacing the battery in our calculation as most EV car manufacturers offer a warranty of 6-8 years and the company says it will last car batteries last 10-12 years and don’t need replacement before that. Currently, the cost of replacing the wrong battery ₹15,000-20,000 per Kwh (a mid-range car has a 30-40 Kwh battery).

By the end of the sixth year, you will have net savings of approx ₹30,000 in EV ownership (see graphic).

View Full Image

EVs welcome no road tax: The Ministry of Road Transport and Highways had abolished it last year to promote EV adoption in the country. Government subsidies for EV cars have now ended as they are now available to first-time buyers.

It should be noted that since the running cost of an EV is largely responsible for eliminating its bulk sale, net savings can be made if the car is driven regularly. For example, in the same model of Tata Nexon and Nexon EV Prime, if the average annual travel is 10,000 km (about 27 km per day), the ownership cost will be more than EV car. ₹2.19 lakh compared to the same petrol in six years. It takes about 10 years to break even on the purchase price (see graphic), but soon the battery will need to be replaced (the price is approx. ₹6 lakh) or offer the car for sale.

We did not take resale value into account when determining total ownership costs because there is insufficient data on the resale of EV cars. However, given the current high demand for ICE (Internal Combustion Engine) vehicles, EVs will become more expensive to sell, said Animesh Das, executive director, motor underwriting, ACKO .

Advanced insurance

In addition to the higher purchase price, insurance on EVs can cost up to 40%. “Because of the higher value of the car, the cost of landing on the insurance for the customer is higher if they are EVs,” Das said.

He added that, currently the prices of EV cars are falling at the same rate as petrol/diesel cars although the value of the battery is depreciating faster than the value of the engine. “Within five years, the value of the batteries in the market will drop by almost 70% but the engine will depreciate by 50%. Therefore, the value of the gasoline car will be higher, for the engine or diesel than a vehicle running on a battery.”

The cost of EV insurance increases due to the higher IDV (Insured Declared Value) of the vehicle, not as an added benefit.

EV insurance, like auto policies, covers the vehicle against accidental damage, fire, natural disasters, riots and theft of the insured vehicle. “EV battery failure scenarios for accidental and ‘Act of God’ accidents are covered under insurance policies, while electrical and mechanical failure are not covered,” it said. says Indraneel Chatterjee, co-founder, RenewBuy.

Price and range

EVs can easily be charged with the 15 amps socket used in homes for gas and thermals. Most car companies install a 15 amp outlet in the owner’s home for free. However, the payment period is longer in this case. It takes 9-10 hours for a 10-90% charge. The car has a range (distance covered in a fully charged EV) of 210-20 km and is driven for an average of 45 km per day, needs to be charged twice a week and uses a 15 amps socket.

Additionally, one can use the CCS (combined charging system) connection for fast charging (60 minutes for 10-80% charge) at the station. You can find charging stations in your city on platforms like EV Plug, Charge-List and Tata Motors website, among others.

Those who live in apartments in housing communities and do not have a parking space must rely on the common paid spaces that are included in the community. Sameer Ranjan Jaiswal, CEO, Charzer, said the Welfare Association (RWA) will introduce the facility and recover this cost from EV owners by subsidizing their electricity bills. For communities without RWA, EV owners can install a charging system from companies that provide the necessary infrastructure and credit system, such as ACDC Electric, Zeon, ElectricPe and others. The credit system in this option is based on cost. -as-you-use method.

Those who live in apartment communities can install a rental in a common parking space by drawing the community’s electric line, installing a meter and charger. Permission should be obtained from the community group and each DISCOM.

Whichever method you choose, it is advised that you discuss the cost structure integration with the community/RWA before purchasing an EV as there are cases where housing societies have rejected it.

Separately, the potential of EVs for inter-city travel is debatable because small towns and highways do not have a proper charging structure. If you are planning inter-city travel, it is advisable to plan the fare schedule in advance. Make sure you have a working charging station on your way and the hotel or any lodging you will be staying in has a 15 amp socket installed in the parking lot.