Ideally, people should choose fuel-efficient electric scooters over two-wheelers that consume fossil fuel. However, the price of the former can be deterring when you are dealing with a price-sensitive market like India because it ranges between ₹95,000 and ₹1.35 lakh.
In the long run, however, you could actually save a great deal of money by using e-scooters if you overlook the initial high costs. The outrageous price of petrol at more than ₹100/liter makes purchasing an electric car all the more sensible.
In today’s post, we will be looking at the current scenario of Electric Vehicle adoptions in India, and try to understand whether or not it is economically viable to opt for an EV now or in the near future. Here’s an overview.
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EV Price Range in India: An Overview
The prices of e-scooters are not the same across electric vehicle manufacturers in India. Hero Electric, Okinawa, and EeVe India offer affordable electric scooters from ₹50,000 to ₹56,000. Compared to Ather and Simple Energy One, these models come with higher power and range (the distance a user can travel on a fully charged EV), as well as an array of tech features and cost about 1.1 lakhs to 1.3 lakhs. According to Ola Electric, its first product offering, Ola S1, will retail for ₹85,000 in Delhi (post-government subsidy based on an ex-showroom price of ₹99,999).
The Incentives for Electric Vehicles:
Due to its high initial cost, buying an electric vehicle used to be an expensive proposition until a few years ago. Nonetheless, the government introduced a number of initiatives to promote the purchase of EVs in the country, which have helped to bring the price of electric vehicles down.
The fee for EV registration certificates is no longer charged by the Ministry of Transportation and Highways effective August 2021. Tax benefits of up to ₹1.5 lakh have also been introduced for first-time buyers who take out a loan to buy an EV. Additionally to the benefits the government offers, some states have provided subsidies and other incentives. The result has been a significantly reduced price for the end-user.
Ownership costs of Electric Vehicles:
For a comparative analysis of the savings that could be realized by an electric scooter, we can compare Honda’s Activa 125 with Okinawa’s i-Praise, which is the closest in specification to a mid-range petrol scooter.
By some simple calculations, it can be found that electric scooters are 90% cheaper than petrol scooters in terms of fuel costs. The high upfront costs of an e-scooter can be easily offset by your daily commute of over 30 km within a year.
Furthermore, cost savings on a two-wheeler over the course of six years, which is the minimum term one typically owns, will total nearly ₹93,000. A battery can cost up to ₹40,000 when it needs to be replaced.
A majority of companies, however, give a five-year guarantee on the battery and claim that it won’t require any replacements for 5-6 years. In this case, if you decide not to replace the battery, you’ll save another ₹30,000.
When you ride electric scooters regularly and for long distances, e-scooters do result in significant savings over petrol scooters. The total savings for six years would be above 8k INR if you ran your scooter on average for 300 km per month. For the total ownership cost to equalize with that of a petrol vehicle, it will take more than four years.
Regarding service and maintenance, electric scooters do well, though battery replacement is expensive and usually requires replacement after five years. Compared to petrol scooters, electric scooters require about ₹1,000 in maintenance annually.
Final Words:
In the long run, electric scooters are considerably more economical than petrol scooters.
EVs, however, do not offer the same flexibility as petrol cars due to the country’s poor charging infrastructure. Using two-wheelers for commutes within the city should not be a big problem since most electric four-wheelers are used for inter-city travel. However, planning charging schedules ahead may be necessary for electric four-wheelers since they are often used for inter-city commutes.
