EV ownership in India gains momentum: Cost advantages and govt support drive growth

Electric vehicle (EV) ownership in India is gaining momentum, driven by the clear cost advantages it offers over traditional internal combustion engine (ICE) vehicles. Despite the slightly higher initial acquisition cost, the long-term benefits make EVs a smart choice for buyers seeking sustainable and cost-effective mobility solutions. TATA.ev is leading the charge in bringing price parity between EVs and comparable ICE models. With lower running and maintenance costs, EVs are the future and are redefining the economics of car ownership.

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According to the VAHAN data, the electric passenger vehicle segment has seen a remarkable surge, with retail sales reaching over 89,000 units in CY 2024, marking a 22 per cent increase from the previous year. This growth reflects a broader trend in the EV market, which saw a total of 1.9 lakh units sold, representing a 27 per cent overall increase. Besides its economic benefits, this rising consumer interest in EVs is also driven by the expanding support from both manufacturers and government initiatives.

The financial edge of EVs

A closer examination of the costs associated with EV ownership reveals substantial savings across multiple fronts. The total acquisition cost for models like the Nexon.ev is becoming increasingly competitive as battery prices continue to decline. When compared to equivalent petrol, diesel, hybrid, and CNG vehicles, the Nexon.ev offers a favourable cost proposition, making EVs more accessible to a broader range of consumers.

Beyond the initial purchase, the ongoing cost benefits of EVs become even more apparent. Charging an EV is substantially more economical than fuelling an ICE vehicle. Additionally, lower maintenance costs due to fewer moving parts further enhance the appeal of EVs as a cost-effective option. The integration of rooftop solar systems adds another layer of savings, allowing EV owners to achieve zero-cost mobility and reduce energy costs by utilising renewable energy for charging, making the shift to electric mobility even more advantageous.