EVs vs ICE Cars: The Total Cost of Ownership Battle

Electric vehicles (EVs) are often seen as expensive, but there’s more to car ownership than just the price tag. When you factor in how much you’ll spend over the years on fuel, maintenance, insurance, and resale, the numbers start to favour EVs. This comparison—called Total Cost of Ownership (TCO)—gives a clearer picture of which vehicle actually costs more in the long run: an EV or a traditional petrol/diesel (ICE) car.

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Upfront Price: ICE cars are cheaper

There’s no doubt that ICE cars are easier on the wallet at first. For example, a petrol Tata Nexon starts at around Rs 9 lakh, while the electric version costs about Rs 15 lakh. Even with government subsidies, the difference is significant.

Operational Costs: EVs pull ahead

But EVs are far cheaper to run. Charging an EV at home costs around Rs 1.5–2 per km, compared to Rs 7–9 per km for a petrol-driven car. Over a year, that could save you Rs 40,000 or more—especially if you drive daily.

Maintenance

EVs have fewer moving parts, which means less servicing. There’s no engine oil, no clutch, and no exhaust system to worry about. Many EV owners save Rs 20,000–25,000 a year on maintenance compared to ICE cars.

Insurance and Tax

EV insurance can be slightly more expensive, but many states offer road tax waivers and incentives. That helps bring down the overall cost.

Resale Value

Petrol and diesel cars have a strong resale market. EVs are new, and resale prices are still uncertain—mainly due to battery life concerns. That said, EV batteries now come with long warranties, and resale values are expected to improve.

What Should You Buy?

You should go electric if you drive regularly, mostly in the city, and have access to charging at home or work. However, stick to petrol/diesel if you travel long distances often, especially where charging stations are hard to find.

Final Word

EVs may seem costly at first, but when you look at the overall scheme of things, they often win the total cost game. As more models enter the market and charging gets easier, the case for switching to electric will only get stronger.