Real Cost of Owning an EV vs a Fuel Car

EVs have been gaining popularity over the last few years, and OEMs have been pushing for EV adoption across the country. With government policies revolving around EVs and providing subsidies and rebates in the segment, it has been quickly gaining favor of the Indian buyers.

However, one question remains. Is owning an EV costlier than owning a fuel car?

Well, the question is fair. EVs tend to cost far more than their ICE versions and the upfront cost often becomes a barrier for the future.

Here, let me compare the ownership cost of Tata Nexon (Petrol) and Tata Nexon EV over a period of 5 years. We have assumed around 75,000 km total or 15,000 per year, with costs typical for Delhi.

Nexon Petrol – Total Cost of Ownership (5 Years)

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• Upfront Cost: Around ₹9.0 to 9.3 lakh ex‑showroom with on‑road price coming to ₹10.8 lakh in Delhi.
• Fuel Cost: At approx. 16 to 17 kmpl and petrol price ₹100 per liter  means a cost of ₹6 per kilometer. For 75,000 km, it comes to ₹4.5 to ₹5 lakh over 5 years.
• Maintenance / Service: ₹10,000 to ₹15,000 per year and ₹60,000 to ₹75,000 over 5 years.
• Insurance & Others: About ₹1.2 lakh over 5 years.
• Depreciation: Ballpark 50% in value drop of ₹4.6 lakh, depending on variant.
• Estimated Total Ownership Cost: Around ₹18 to ₹19 lakh, with many calculations around ₹18.3 to ₹18.5 lakh.

Nexon EV - Total Cost of Ownership (5 Years)

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• Upfront Premium: EV costs ₹5 to ₹5.5 lakh more than petrol variant.
• Charging Cost: At ₹10 to ₹7 per unit electricity, Nexon EV costs around ₹0.85 to ₹1/km. 75,000 km translates to roughly ₹65,000 to ₹83,000 over 5 years.
• Maintenance / Service: ₹25,000 to ₹33,000 over 5 years, assuming ₹5,000 to ₹6,000/year.
• Insurance & Others: Slightly higher insurance with approx. ₹1.4 lakh in total.
• Depreciation: Estimated around ₹6.5 lakh over 5 years.
• Estimated Total Ownership Cost: Around ₹17 to ₹19 lakh depending on charging rates and insurance with most sources clustering around ₹18.5 lakh over 5 years

Side‑by‑Side Comparison

Considerations

Electricity cost variability: If your state’s domestic tariff is ₹7 per kWh, EV running cost dips lower at ₹0.85 per km. But also rising to ₹10 to ₹12 per kWh pushes it up to ₹1 per km.

Charging convenience: Home charging is reliable while public fast‑charging infrastructure remains inconsistent in many areas.

Battery health & resale: Tata offers lifetime battery warranty. Resale market is improving but still has some uncertainty over battery degradation.

In Delhi with Around 15k km per year

With home charging at ₹7 to ₹10 per kWh and moderate driving, expect savings of ₹75,000 to ₹1 lakh over 5 years with the Nexon EV compared to petrol.

If electricity rates are higher or you rely heavily on fast chargers, the financial edge narrows but EV still often stays competitive over a typical 5‑year span.

Takeaway

Despite the upfront premium, the Nexon EV generally offers lower fuel and maintenance costs, bringing its 5‑year TCO in line with or slightly below the petrol version.

Many credible sources estimate the EV’s total to be about ₹1 lakh less, thanks to much cheaper running costs.

Other analyses show the EV may be only slightly more or comparable depending on electricity rates and driving patterns.