How much will you save if you start driving an electric car?

Petrol prices have reached an all-time high in the Indian market. A litre of petrol now costs Rs 77.17 in Delhi and Rs 84.99 in Mumbai (as per revised prices on May 23, 2018). To put it in perspective, last year around this month, the prices ranged around Rs 65 in Delhi. Apart from high state and central taxes, the international prices of crude oil skyrocketed with hardly any signs of slowing down.

Since the state has so far not done anything, the consumer has to bear the brunt of the higher prices.
The only thing that the consumer can do is to look for alternatives. Electric vehicles are turning out to be one of the best alternatives present at the moment.
 
From a consumer's point of view, electric cars are still an elusive option to a majority of automobile buyers. However, one thing that electric cars have going for them is the low running cost. Here we compare the running costs of an average petrol car with that of an electric car (Mahindra e2o).
 
The calculations have been made with an assumption that both cars-ev and petrol cars-- travel 50 kms a day for 24 days in a month (6 days a week).

Here's the calculation:

Electric car (Mahindra e2o)

Full Range: 140km

Total consumption of electricity in a full charge: 16.5 units

Electricity Usage per km: 16.5/140= 0.12 unit

Maximum cost of electricity in Delhi (domestic): Rs 6.5 per unit

Total cost of running for 1 km: Rs 6.5x 0.12= 0.78 or 78p

Total expenditure in a day: Rs 0.78x50= Rs 39

Total expenditure in a month: Rs 39x24= Rs 936

The calculations clearly show that the electric car just needs an investment of Rs 936 per month, owing to the relatively low price of electricity per unit.

Petrol Cars

Mileage assumed: 15 kmpl

Price this year (May 2018): Rs 77 (rounded off petrol price in Delhi)

Average consumption (distance traveled/mileage) 50/15= 3.33 liters per day

Cost of running in 2018 (per day) = Rs 77x 3.3= Rs 254.1

Average working days in a week= 6

Total working days in a month= 6x4= 24

Total expenditure in a month: 24x254.1= Rs 6,098.4

Difference in running cost of both cars= Rs 6,098.4-936= Rs 5,162.4

As seen in the calculations above, high petrol price leads to a higher running cost of Rs 254.1 per day which is 651.5 per cent higher compared to a meager Rs 39 per day for an electric car. The difference in cost further amplifies when analysed on a monthly basis. Our calculations show that a person running the same distance in a petrol car will have to pay an extra Rs 5,162.4, when compared to an electric car.

Having said that, the total expenditure on the electric vehicle should also account the replacement cycle of the battery, which in this particular case is five years. The price of a new lithium ion battery, in the current situation, is slightly lesser than half of the price of the car itself.

Unlike petrol cars, electric vehicles also require a substantial amount of time to charge. Additionally, charging stations are a rare sight even in urban setups. The practicality bit is a big reason why most buyers are willing to pay extra for petrol, diesel rather than switching to EVs.