EV vs Petrol — Total Cost of Ownership Over 5 Years in India

The question every EV buyer asks

EVs cost ₹2-4 lakhs more than equivalent petrol cars upfront. But everyone says "EVs are cheaper to run." How much cheaper? And does the lower running cost actually justify the higher purchase price?

This guide runs the full math — not marketing claims, but real numbers based on current electricity tariffs, petrol prices, and insurance costs in India.

The comparison: Tata Nexon EV vs Tata Nexon Petrol

Let's use the Tata Nexon as the example. It is available in both petrol and EV versions, making it a clean comparison. Both have similar features, safety ratings, and build quality.

	Nexon Petrol (Creative)	Nexon EV (Prime)
Ex-showroom price (Delhi)	₹9.00 lakhs	₹14.50 lakhs
On-road price	₹10.50 lakhs	₹15.20 lakhs
Range	600+ km per tank	325 km per charge
Fuel/electricity cost (per km)	₹8.50 (at ₹100/L, 12 km/L)	₹2.00 (at ₹8/kWh, 4 km/kWh)

Upfront difference: ₹4.70 lakhs (EV costs more)

Now let's see if the EV recovers that ₹4.70 lakh premium over 5 years.

Year-by-year cost breakdown (5 years, 1 lakh km)

Fuel / Electricity Cost

Nexon Petrol:

• Mileage: 12 km/l (real-world mixed driving)
• Petrol price: ₹100 per litre
• Cost per km: ₹8.33
• Total fuel cost (1 lakh km): ₹8,33,000

Nexon EV:

• Efficiency: 4 km/kWh (real-world)
• Electricity cost: ₹8 per kWh (average home tariff)
• Cost per km: ₹2.00
• Total electricity cost (1 lakh km): ₹2,00,000

Fuel savings with EV: ₹6,33,000

Maintenance Cost

Nexon Petrol:

• Oil changes (every 10,000 km): ₹3,000 × 10 = ₹30,000
• Air filter, spark plugs, coolant: ₹15,000
• Brake pads (more frequent due to no regen braking): ₹20,000
• General service labor: ₹20,000
• Total maintenance (5 years): ₹85,000

Nexon EV:

• No oil changes, no spark plugs, no exhaust
• Brake pads last longer (regenerative braking reduces wear): ₹8,000
• Coolant for battery: ₹10,000
• General service labor: ₹15,000
• Battery health check: ₹10,000
• Total maintenance (5 years): ₹43,000

Maintenance savings with EV: ₹42,000

Insurance Cost

EVs have higher insurance premiums because the insured declared value (IDV) is higher.

Nexon Petrol:

• Year 1: ₹18,000 (comprehensive)
• Years 2-5: ₹15,000 + ₹13,000 + ₹11,000 + ₹9,000
• Total insurance (5 years): ₹66,000

Nexon EV:

• Year 1: ₹28,000 (comprehensive, higher IDV)
• Years 2-5: ₹24,000 + ₹20,000 + ₹17,000 + ₹14,000
• Total insurance (5 years): ₹1,03,000

Insurance penalty with EV: ₹37,000 more

Resale Value (estimated)

This is the big unknown. EVs in India are too new to have solid depreciation data. For this comparison, let's assume:

Nexon Petrol resale (after 5 years): 60% of on-road price = ₹6.30 lakhs
Nexon EV resale (after 5 years): 55% of on-road price = ₹8.36 lakhs (conservative, accounting for battery age concerns)

Resale advantage with EV: ₹2.06 lakhs

Even with conservative depreciation, the EV holds more absolute value because it cost more to begin with.

Total Cost of Ownership (5 years, 1 lakh km)

Cost Category	Nexon Petrol	Nexon EV	Difference
Purchase (on-road)	₹10.50 L	₹15.20 L	+₹4.70 L
Fuel / Electricity	₹8.33 L	₹2.00 L	-₹6.33 L
Maintenance	₹0.85 L	₹0.43 L	-₹0.42 L
Insurance	₹0.66 L	₹1.03 L	+₹0.37 L
Resale value	-₹6.30 L	-₹8.36 L	-₹2.06 L
Net total cost	₹14.04 L	₹10.30 L	EV saves ₹3.74 L

Bottom line: Over 5 years and 1 lakh km, the Nexon EV costs ₹3.74 lakhs less than the Nexon Petrol, even after accounting for the higher purchase price.

Break-even point

The EV premium is ₹4.70 lakhs. With monthly savings of roughly ₹5,000-6,000 (fuel + maintenance), the break-even happens around 7-8 years or 1.4 lakh km.

If you drive less than 15,000 km per year, the break-even stretches to 10+ years — and by then, battery degradation becomes a concern.

If you drive 25,000+ km per year (taxi drivers, sales reps, frequent travelers), the break-even happens in 3-4 years — making EVs a financial no-brainer.

Variables that change the math

1. Electricity cost

If you charge at home and have a lower tariff (₹5-6/kWh), your per-km cost drops to ₹1.25-1.50. Savings increase.

If you rely on public fast chargers (₹15-20/kWh), your per-km cost jumps to ₹4-5. The EV advantage shrinks significantly.

2. Driving distance

The more you drive, the faster the EV pays for itself. At 30,000 km per year, the fuel savings alone are ₹1.9 lakhs per year.

3. Petrol price

If petrol goes to ₹120/litre (plausible in 2-3 years), the Nexon Petrol's fuel cost jumps to ₹10 per km. The EV advantage becomes even more dramatic.

4. Battery replacement

Tata warrants the Nexon EV battery for 8 years or 1.6 lakh km. If the battery degrades significantly and needs replacement after that, it costs ₹4-6 lakhs. This is a tail risk that does not apply to petrol cars.

When an EV makes financial sense

Buy an EV if:

• You have reliable home or workplace charging
• You drive 20,000+ km per year
• Your daily commute is under 150 km
• Petrol prices are high in your state

Stick with petrol if:

• You drive less than 10,000 km per year
• You do frequent long highway trips (300+ km)
• You do not have reliable charging access
• Upfront cost is your primary constraint

The intangible benefits of EVs

The math above does not capture:

1. Convenience of home charging
You wake up every morning with a full "tank." No weekly trips to the petrol pump.

2. Silent, smooth driving
EVs have no engine vibration, no gear shifts. The driving experience is genuinely more refined.

3. Instant torque
EVs accelerate faster than equivalent petrol cars. The Nexon EV feels quicker off the line than the Nexon Petrol.

4. Environmental impact
If you care about emissions, an EV powered by India's grid (mix of coal, solar, hydro) still produces fewer lifetime emissions than a petrol car.

The verdict

Over 5 years and 1 lakh km, the Tata Nexon EV saves ₹3.74 lakhs compared to the Nexon Petrol. The higher purchase price is more than offset by fuel and maintenance savings.

But this only works if you:

• Have home charging (otherwise electricity costs spike)
• Drive regularly (low-mileage buyers take 10+ years to break even)
• Stay within the EV's range on most trips (frequent long highway trips make EVs impractical)

If those conditions apply, the EV is the smarter financial choice. If not, stick with petrol or consider a strong hybrid as a middle ground.