Is it true that in the long run it’s cheaper to have an electric car?

Electric cars have gained considerable attention in recent years, not only for their environmental benefits but also for their long-term economic advantages. Many prospective buyers wonder if transitioning to an electric vehicle (EV) is truly cost-effective when considering ownership over several years. In this article, we break down a comparison among different variants of the popular Tata Nexon—petrol, diesel, CNG, and electric—to understand which option offers the lowest cost of ownership over a five-year period.

Initial Investment

The first factor to consider is the ex-showroom price of each variant:

• Nexon Petrol (XZ+): ?10,00,000
• Nexon Diesel (XZ+): ?11,50,000
• Nexon CNG (XZ+): ?11,00,000 (estimated)
• Nexon EV (XZ+ MR): ?14,50,000

While the EV variant has a higher upfront cost compared to the petrol, diesel, and CNG models, the initial investment is only one part of the total cost of ownership.

Running Costs Per Kilometer

Running costs include fuel expenses and regular maintenance. Here's a comparison of the per-kilometer cost for each variant:

• Petrol: Efficiency: 17 km/l Cost: ?6.73 per km Note: Higher fuel prices contribute to the increased cost per kilometer.
• Diesel: Efficiency: 21 km/l Cost: ?4.92 per km Note: Diesel offers a good balance of efficiency and cost, though maintenance costs may be higher.
• CNG: Efficiency: 25 km/kg Cost: ?3.20 per km Note: CNG is economical in terms of fuel, but its maintenance cost somewhat reduces its overall edge.
• EV: Efficiency: 7 km per unit Cost: ?1.33 per km Note: The electric variant dramatically lowers running costs due to minimal maintenance needs and the absence of fluctuating fuel prices.

Total Ownership Costs Over 5 Years

When you add the initial cost with the fuel (or energy) expenses and maintenance over a five-year period, the running costs become a crucial factor. Observations indicate:

• Electric Vehicles (EVs), despite their higher purchase price, show the lowest per-kilometer running cost at just ?1.33 per km. This makes them remarkably economical in the long term.
• CNG-powered vehicles offer the cheapest fuel expenses upfront, but higher maintenance costs can diminish the advantage.
• Diesel models provide a balanced approach, while petrol variants are generally the most expensive to run due to higher fuel prices.

Key Takeaways

• Short-Term vs. Long-Term Costs: If you're focused on short-term savings, CNG might seem the most attractive. However, for those planning to own the car for over five years, the significantly lower running costs of EVs make them the best economic choice.
• Electric Vehicles Lead in Affordability: Beyond the initial five-year mark, the long-term value of the Nexon EV far surpasses that of the conventional petrol, diesel, and CNG variants—not only in terms of cost but also due to additional benefits like reduced environmental impact, lower noise, and minimal maintenance.
• Overall Value: Even though the upfront cost of an EV is higher, its low per-kilometer cost and lower maintenance expenses offer buyers substantial savings over time.

Conclusion

The data strongly suggests that while the initial cost of an electric car like the Tata Nexon EV is higher, its economical running costs make it a more affordable option in the long run. For buyers planning to keep their vehicle for more than five years, the EV is a sound investment that combines future-proof technology, eco-friendliness, and substantial savings.

Considering all these factors, if low running costs, minimal maintenance, and sustainability are your priorities, the Nexon EV stands out as the best choice for the long haul.