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Have you ever wondered how owning an electric vehicle (EV) stacks up against a traditional internal combustion engine (ICE) vehicle in the long run? As more people consider going green, the total cost of ownership between EVs and ICE vehicles has become a hot topic.
From upfront costs to long-term savings, there are several factors that influence the true price of car ownership.
In this article, we’ll dive into the key differences in cost between EVs and ICE vehicles, helping you decide which one could be the smarter financial choice for you.
Total cost of ownership refers to the comprehensive assessment of all costs associated with owning a vehicle over its entire lifespan. TCO includes:
The total cost of ownership (TCO) comparison between electric vehicles and internal combustion engine vehicles is influenced by several major factors that go beyond the sticker price.
Technological advancements, environmental concerns, and increasing governmental support are reshaping the landscape of vehicle ownership.
Let's explore the key drivers behind why EVs are becoming a more attractive long-term investment compared to their traditional gas-powered counterparts.
The increasing demand for environmentally friendly solutions is boosting the electric vehicle market.
As global warming intensifies, EVs are becoming a pivotal part of reducing greenhouse gas emissions, offering a cleaner alternative to internal combustion engine vehicles.
Nickel plays a crucial role in the efficiency of EV batteries.
These high-energy-density batteries enable EVs to achieve longer driving ranges, while also supporting performance in extreme temperatures, enhancing vehicle reliability.
Tax credits, financial incentives, and investments in charging infrastructure are some of the ways that governments around the world are encouraging the adoption of electric vehicles.
As a result of these initiatives, EVs are becoming more competitive with internal combustion engine vehicles by lowering their initial purchase price and total ownership expenses.
When we are preparing to purchase a new car, many of us focus on the initial cost. However, it falls under the category of total cost of ownership (TCO).
In this section, we will address the financial effects of owning electric cars (EVs) in India as compared to internal combustion engine (ICE) vehicles.
Government programs and the release of more reasonably priced models have resulted in a decrease in the initial cost of buying an EV in India. EVs are now more widely available thanks to well-known models like the Bounce Infinity.
Due to their typically cheaper initial expenses, ICE vehicles may appeal to consumers on a tight budget. However given the volatility of gasoline prices, their long-term costs can exceed their initial affordability.
In India, power costs about ₹7 per kWh on average. EV owners should anticipate spending about ₹1.17 per kilometer, assuming an average efficiency of 6 km per kWh.
In comparison, a liter of gasoline costs about ₹100 in India. Owners of ICE vehicles pay about ₹6.67 per kilometer for fuel, with an average fuel efficiency of 15 km/l.
EVs typically have lower maintenance costs due to fewer moving parts and less frequent servicing. The absence of oil changes and simpler brake systems contribute to overall savings.
ICE vehicles, with their complex engines and more components, often incur higher maintenance costs. Regular servicing, oil changes, and potential repairs can add up significantly.
Insurance premiums for EVs can be higher due to their higher purchase price and specialized repairs. However, as the market matures, these costs are beginning to stabilize.
ICE vehicles generally have lower insurance costs. The following table compares average insurance premiums for both vehicle types.
EVs in India currently experience higher depreciation rates, though this is expected to change as technology improves and demand increases.
ICE vehicles typically depreciate at a more predictable rate. The following table outlines average depreciation rates for both types of vehicles.
The Indian government offers various incentives to promote EV adoption, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which can reduce the purchase price by up to ₹1.5 lakh.
Incentives for ICE vehicles are minimal, as the focus is primarily on encouraging cleaner alternatives. The following table summarizes typical incentives available for EVs and ICEs.
The total cost of ownership (TCO) of electric vehicles (EVs) and internal combustion engine (ICE) vehicles can vary significantly across different regions in India.
These variations are influenced by several key factors, including fuel prices, electricity tariffs, government incentives, infrastructure availability, and local economic conditions.
Understanding these regional dynamics is essential for consumers and businesses alike, as they directly impact the long-term costs associated with vehicle ownership.
In the total cost of ownership comparison of EVs vs. ICE vehicles, electric vehicles are proving to be the smarter choice for many drivers. With lower fuel and maintenance costs and attractive government incentives, EVs can lead to significant savings over time.
While the initial purchase price may be higher, the long-term benefits make them an appealing investment for environmentally conscious consumers.
If you're considering switching to an electric scooter, check out Bounce Infinity! Explore their range of electric scooters tailored to your needs, and book a demo to see how you can save money while helping the planet! Visit Bounce Infinity today!
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