EV vs Petrol/Diesel Cars – Tested Running Costs Comparison

The market for electric vehicles and their demand is rapidly expanding.

Since electric vehicles are more cost-effective and environmentally friendly than fuel-powered ones, many people are choosing to purchase them.

While electric vehicles are the future of mobility, their high upfront purchase cost and running costs as compared to an ICE vehicle prevent them from penetrating the mass market.

Thus, a big question that comes to everyone’s mind is the cost of running an electric vs petrol vehicle.

EV Vs Petrol/Diesel Cars – Running Cost Comparison

 

Electric vehicles are far more cost-efficient since they make use of electricity to charge their batteries instead of traditional fuels like petrol or diesel.

An electric vehicle has a significantly lower running cost than a petrol-powered or diesel-powered vehicle.

The running cost of an EV can be made even more cost-effective by utilizing renewable energy sources.

For instance, installing renewable energy sources such as solar panels, can help reduce the running cost of EVs even more.

And when you include this in the total running cost, an electric vehicle becomes much cheaper than using petrol or diesel for travelling.

To understand and assess the cost of running an EV versus an ICE vehicle, we have compared the charging costs of the Hyundai Kona Electric and the fuel costs of an ICE vehicle with a mileage of 20km/l covering a distance of 564 kms.

Vehicle Type	Charging/Fuel Cost (for 564 km)	Cost per km (₹)	Efficiency & Cost Insights
Electric Car (Hyundai Kona)	₹1,101	₹1.95/km	Most cost-efficient due to lower electricity rates and higher energy conversion efficiency.
Diesel Car	₹2,453	₹4.34/km	More fuel-efficient than petrol, but higher diesel costs and lower efficiency than EVs make it more expensive.
Petrol Car	₹2,735	₹4.85/km	Least efficient, making it the most expensive to run.

Savings Per Km (Compared to EV)

• Diesel vs EV: ₹4.34 – ₹1.95 = ₹2.39 saved per km
• Petrol vs EV: ₹4.85 – ₹1.95 = ₹2.90 saved per km

Source: X/@Xroaders_001

Hyundai Kona Electric:

Charging cost: Rs. 1,101 for 564 km.

Cost per km: 1.95/km.

The Kona Electric is the most fuel-efficient option, with the lowest running cost because electricity rates are generally cheaper than fuel.

Additionally, EVs are more energy-efficient, converting a higher percentage of the energy from charging into actual driving power, leading to lower operational costs.

ICE Vehicle:

Diesel Powered

Charging cost: Rs. 2,453 for 564 km

Cost per km: 4.34/km.

Diesel-powered vehicles tend to be more fuel-efficient than petrol ones, but the higher cost of diesel per litre and lower efficiency compared to EVs have resulted in higher overall running costs than the Hyundai Kona Electric.

Petrol Powered

Charging cost: Rs. 2,735 for 564 km

Cost per km: 4.85/km

Petrol-powered vehicles are less efficient than diesel-powered ones, making them much more costly, resulting in petrol-powered vehicles having the most expensive cost of running per km.

Savings Per Km

Travelling by an electric vehicle is significantly cheaper and cost-effective at ₹1.95/km as compared to a diesel vehicle at ₹4.34/km or a petrol one at ₹4.85/km.

Therefore, savings per km in the case of an Electric vehicle compared to an ICE vehicle stands at:

Diesel: ₹4.34- ₹1.95= ₹2.39

Petrol: ₹4.85- ₹1.95= ₹2.90

Observations

The Hyundai Kona Electric has a significantly lower running cost, with costs less than half of what it takes to operate a diesel or petrol vehicle covering the same distance

ICE vehicles have a significantly higher running cost, with petrol vehicles being the most expensive to travel per km.

Despite the higher upfront cost of EVs, the lower running costs can lead to substantial savings in the long run.

The fact is that EVs are much more cost-beneficial than their ICE engine counterparts when it comes to running costs. The gap between EV and ICE vehicle costs highlights the financial advantage of adopting EVs. 

Factors Affecting EV Running Cost

 

It is important to take into account the influence of several factors, including energy consumption, fuel prices, maintenance costs, imposition of taxes, etc to understand the running costs of an EV in comparison to a traditional ICE vehicle.

The running cost of EVs is influenced by several factors. Some of the key factors are:

Electricity Cost:

The cost of electricity has a significant impact on the running cost of an EV. The price per unit of electricity varies across states all over India. It is important to take into account the local electricity tariff when calculating running costs.

Type of Charging:

Home Charging (AC Slow Charging): This is the least expensive option, usually done overnight using a dedicated EV charging station installed at your home. Ideal for convenient charging, however slower, and it may take several hours to fully charge.

Generally, public charging stations have various pricing models, including pay-per-use, membership-based or a mix of both.

Public AC Charging Stations: These stations offer faster charging than home chargers but may have slightly higher costs per unit. Slightly expensive but can charge an EV quicker, faster often within an hour or two.

DC Fast Charging Stations: These charging stations offer the fastest charging option but are also the most expensive option due to their much higher rates.

Battery Capacity and Usage:

The overall running cost mainly depends upon the battery size of the EV and is affected by its usage patterns. A larger battery or more frequent charging will incur more running costs.

EVs with better energy efficiency consume less electricity per mile or kilometre, reducing costs.

Maintenance cost

Even though all vehicles have maintenance charges, EVs normally have lower costs as compared to ICE vehicles. These lower maintenance costs are one of the key features that make EVs more cost-effective in the long run.

EVs require minimal maintenance as they have fewer moving parts compared to ICE vehicles. F

or instance, they don’t require parts like exhaust systems, oil filters, spark plugs, timing belts, etc lowering the maintenance costs. Brake examinations, software upgrades, tyre wear, etc are some of the required maintenance tasks for EVs.

\These are usually less costly and require less frequent checks than ICE vehicles.

This lowers the overall running cost of EVs as well as makes them easier to service.

Government Policies:

Government incentives or subsidies can also directly or indirectly impact the overall running cost of EVs and these government policies might get altered over time in the future.

Imposition of Taxes:

The running cost of electric vehicles is significantly affected by the imposition of taxes.

Electric vehicles are eligible for various tax exemptions by the government, lowering their overall running costs.

To make up for the lost fuel tax revenue, the government have also implemented road usage taxes, increasing their overall running costs.

The imposition of taxes can either lower or raise the running cost of EVs, depending on the policies.

While usage-based or higher energy taxes may increase running costs, implementation of supportive tax structures like subsidies, exemptions or lower energy taxes can help make EVs more cost-effective in the long run.

Conclusion

In conclusion, Electric Vehicles offer significant cost savings on running costs compared to ICE vehicles in the long run.

While EVs initially have a higher upfront purchase cost, they save more money in the long run due to lower running costs.

The overall savings vary depending on various factors like energy costs, charging infrastructure, maintenance costs, government policies, etc.