The Nexon example
Let's use the assumptions from the TRG reel: an EV costs ₹2.69 lakh more than the comparable petrol car. The car is driven 10,000 km each year, petrol costs ₹102 per litre, public DC charging costs ₹22 per kWh, and the assumed efficiencies are 12 km/l for petrol and 6 km/kWh for the EV.
| Input / result | Petrol | EV |
|---|---|---|
| Annual distance | 10,000 km | 10,000 km |
| Efficiency assumption | 12 km/l | 6 km/kWh |
| Energy price | ₹102/litre | ₹22/kWh |
| Calculated annual energy cost | ₹85,000 | ₹36,667 |
| Annual EV energy saving | — | ₹48,333 |
At that saving rate, five years of lower energy costs add up to about ₹2.42 lakh. That's close to—but still below—the ₹2.69 lakh upfront premium. After five years, roughly ₹27,000 of the original premium remains unrecovered, before considering opportunity cost, resale value or other ownership costs.
The hidden cost: opportunity cost
What if the extra ₹2.69 lakh needed for the EV had instead been invested in a fixed deposit earning an assumed 7% annually? With annual compounding, it would grow to roughly ₹3.77 lakh after five years—about ₹1.08 lakh in interest.
Interest over five years ≈ ₹1.08L
One rough way to visualise the hurdle is to divide that five-year future value by the current annual energy saving: ₹3.77 lakh ÷ ₹48,333 ≈ 7.8 years, or around 78,000 km at 10,000 km per year.
This 7.8-year figure is a simplified communication shortcut—not a full discounted-cash-flow breakeven. A rigorous calculation would model the timing of yearly savings, changing energy prices, charging mix, finance cost, maintenance and resale value.
Resale value can change the answer
You don't just pay to use a car; you also own an asset that you'll eventually sell. In India's current used-car market, many EVs can face resale-value pressure compared with similarly aged petrol or diesel cars. Buyers may factor in uncertainty around battery health, the cost of future repairs, rapid improvements in range and charging technology, and price changes or incentives on new EVs.
This is a market tendency, not a rule for every vehicle. Resale value depends on the specific model, battery condition and warranty, age, kilometres driven, local demand, the price of newer alternatives and the seller's condition records. A well-maintained EV with documented battery health can perform differently from another EV of the same age, so use model-specific resale estimates where available.
Home charging vs public charging
The example uses ₹22/kWh public DC charging. Your actual savings may be very different if most charging happens at home, at work or on public fast chargers.
What a proper EV-vs-petrol comparison should include
The takeaway
EVs can have a compelling running-cost advantage. But lower running cost is not the same thing as financial breakeven.
For someone driving 10,000 km a year, the answer can depend on a handful of inputs: how much extra the EV costs up front, where it's charged, what that money could earn and what the vehicle will be worth at resale.
Sources & assumptions
The ₹2.69 lakh purchase premium, 10,000 km/year, ₹102/litre petrol, ₹22/kWh public DC charging and stated efficiencies are the worked-example assumptions supplied with the TRG reel. The annual costs above are recalculated from those inputs and rounded to the nearest rupee; actual prices and efficiencies vary.
Resale note: Used-car prices change with local supply and demand, the condition of the vehicle, battery-health evidence, warranty coverage and changes in new-car pricing. Do not treat a general market trend as a guaranteed resale prediction for any individual model.