Buying an electric car? Before spending big bucks, factor these hard facts

Time of India

28-04-2025

With the government proposing a complete ban on the import of
internal combustion engine
(ICE) vehicles by 2030, the push towards
electric vehicles
(EVs) is evident. The rationale is strong—EVs promise a cleaner environment and are positioned as a sustainable solution to India's pollution problem. The impact is already visible, with nearly two million EVs sold in 2024, reflecting rising consumer interest.
#Pahalgam Terrorist Attack
India stares at a 'water bomb' threat as it freezes Indus Treaty
India readies short, mid & long-term Indus River plans
Shehbaz Sharif calls India's stand "worn-out narrative"
However, government policy is not the only reason for this rapid adoption. Lower running costs and the promise of long-term savings have also contributed to EVs becoming an attractive option for many buyers.
Yet, behind the optimism, a segment of consumers still remains hesitant to let go of their
ICE vehicles
, and for good reason. According to a 2024 Park+ survey, 51% of EV users considered switching back to ICE vehicles.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Moose Approaches Girl At Bus Stop In Jakarta Raya - Watch What Happens
Happy in Shape
Undo
While the EV ecosystem has seen notable improvements in recent years, several of the core challenges continue to exist. For prospective buyers, understanding these hidden costs is crucial to making an informed and regret-free purchase decision.
How usage impacts cost
Whether an electric vehicle will cost you less or more ultimately depends on how you use it. For individuals who primarily commute within the city, EVs can be highly cost effective.
Live Events
PADAM MITRA
PUNE
Profession:
Retired bank official
Cars:
Tata Tigor EV and Maruti Grand Vitara
Problem Faced: Charging issues outside city, requiring visits to Tata service centre. Avoids long drives; uses EV only for intra-city travel.
Take the case of Padam Mitra, who uses his EV exclusively for intra-city travel. 'I use it to travel within the city and, honestly, the experience has been great,' he says. However, he avoids long-distance drives due to range issues that he faced when he took it to Mumbai.
Electric cars
typically offer a shorter driving range than ICE vehicles; they cover lesser distance on a full charge compared to a full tank of fuel.
'The other problem I faced was charging my car outside home. If I charge it from a different charger, the plug gets stuck and I often need to go to the Tata service store for help,' he adds. He now makes sure to always charge his car at home. It has pushed the electricity bill by just Rs.1,000-2,000 a month, which is a reasonable amount. Mitra admits that he does not take his EV outside the city anymore.
He's not alone. Mumbai-based Ashish Dwivedi, an automobile engineer, has structured his
vehicle ownership
around the limitations of EVs. Aware of how EVs function, he has purchased electric scooters for city commutes and retained his XUV500 for inter-state travel. 'EV scooters and bikes offer great value for money compared to ICE if your daily commute is between 80 and 120 km. Beyond that, range anxiety becomes a real concern. When it comes to
electric car
s, the dynamics are different,' says Dwivedi.
ASHISH DWIVEDI
MUMBAI
Profession:
Automobile engineer
Vehicle(s):
Mahindra XUV 500 & Mercedes E350D; OLA S1 Pro Problem: EVs offer value only for daily city travel (80-120 km), he says. Also rues range anxiety and high upfront cost of electric cars.
Electric cars that offer a usable range closer to what's promised on paper typically come at a significant premium. For instance, the XUV 3XO (ICE variant) is priced between Rs.8 lakh and Rs.15.5 lakh, while the XUV 3XO EV with similar features and body design is priced between Rs.15 lakh and Rs.18 lakh. Buyers often end up paying considerably more simply because the vehicle is electric.
This premium pricing leads many buyers to assume that EV ownership will be hassle-free after purchase. However, reality kicks in when they drive for long hours only to find themselves stranded with a drained battery and no charging infrastructure in sight. Such moments reveal the gap between expectation and experience, particularly for long-distance travel.
Beware of these before buying an electric car
Understand usage patterns
EVs are cost-effective for city commute, but if you travel long distances, the range anxiety and charging issues can offset savings.
Factor in the hidden costs
Towing and battery replacement can burn a bigger hole in your pocket than expected. Battery replacement alone can cost up to 60% of the car's value.
Don't forget insurance and repair costs
EV insurance premiums are higher due to costly repairs, especially if battery or sensor damage is involved. Most owners add extra riders for battery protection.
Don't overlook charging infrastructure
Unlike petrol pumps, EV chargers aren't available everywhere, and even fast chargers can take hours. On road trips, poor infrastructure can derail your plans as well as budget.
Resale value can be low
Electric vehicles can depreciate a lot faster than ICE vehicles due to fast evolving technology and changing consumer preferences.
Not enough charging points
ARCHIT DHINGRA DELHI
Profession:
Marketing manager Car: Tata Tiago EV
Problem:
Car broke down during a trip from Delhi to Dehradun due to lack of nearby charging stations. Towing cost Rs.2,100. Frustrated by lack of infrastructure and his overall experience, he decided to sell the car, only to find that it had depreciated significantly.
That's exactly what happened with Delhi based Archit Dhingra. While driving his Tata Tiago EV from Delhi to Dehradun, the car broke down midway. 'I had to get my car towed because there was no charging station nearby. It cost me `2,100, excluding the charging cost,' says Dhingra. 'Towing an electric vehicle typically requires specialised equipment, which can be more expensive than towing an ICE vehicle,' explains Kunal Vora, Head of Products, Motor Insurance, Probus. Such instances highlight the hidden costs of EV ownership that most buyers overlook before making a purchase decision.
'Charging infrastructure challenges, coupled with high upfront costs and battery performance issues over a five-year period make electric cars an expensive affair,' says Dwivedi. He adds that these long-term concerns should not be taken lightly by prospective buyers. 'Replacing an EV battery can cost up to 60% of the car's value,' warns Himanshu Arora, Co-founder, GoMechanic. Just like a smartphone, an EV battery will gradually degrade over time, making a replacement almost inevitable down the line.
To address these concerns, brands like Morris Garage and Mahindra have introduced lifetime warranties on select electric models. However, there's a catch—this benefit is only applicable to the first owner. For second-hand buyers, the warranty doesn't carry over, which significantly pushes down the resale value of the vehicle, creating another hidden cost that often goes unnoticed.
Poor resale value
'After the Dehradun incident, I decided to sell my Tiago and switch back to an ICE vehicle. I had used it for nearly 2.5 years, but was shocked to find that I was getting only around 50% of what I had paid. That really frustrated me,' says Dhingra.
Unlike ICE vehicles, electric vehicles depreciate a lot faster due to rapid shifts in technology and evolving consumer preferences. This hits particularly hard for buyers who like to upgrade frequently or are concerned about long-term value. 'There's a common misconception that EVs are significantly more economical, but over 5-7 years, the total cost of ownership is quite similar, especially for those driving long distances frequently or at high speeds,' says a Gurugram-based mechanic who preferred to remain anonymous.
Higher premiums
Even if your EV doesn't break down or meet with an accident, you will still end up paying more in terms of insurance, which is non-negotiable. In the event of an accident, the repair bill can sometimes match the cost of a new vehicle. This is because EV repairs, especially those involving battery or sensor damage, are expensive. These high repair costs are one reason that insurance premiums for EVs are higher than those for ICE vehicles.
To mitigate risks, many EV owners also purchase additional riders that specifically cover electric vehicle vulnerabilities. 'EV owners often opt for add-ons that address EV-specific risks. Common choices include coverage for consequential battery damage and 24x7 roadside assistance for breakdowns or charging issues,' says Gaurav Arora, Chief, Reinsurance, Underwriting & Claims, Property & Casualty at ICICI Lombard
Should you buy?
There's no denying that EVs offer several benefits. The lower maintenance costs and fuel savings make them attractive for many urban users. If your travel is mostly within the city, they can be very cost-effective. Electricity use could be as low as Rs.1-3 per kilometre, compared to Rs.5-9 spent on fuel for ICE vehicles.
However, for frequent outstation travel, EVs still pose logistical hurdles. 'If you are a frequent traveller or a road- trip enthusiast, a petrol or diesel car makes more sense. Over time, the total cost may even out, but ICE vehicles still cause less hassle and are more long-lasting,' says the anonymous mechanic.
Arora of GoMechanic advocates hybrid vehicles. 'I'd definitely recommend either an ICE or a hybrid car. Hybrid is a smart, underrated technology that deserves more attention,' he adds. Hybrids offer the cost-saving benefits of EVs while addressing range anxiety. At lower speeds of 40-50 km per hour, the car runs on battery power. Once the speed crosses 60 km an hour, the engine takes over, as batteries tend to drain faster at higher speeds.
Meanwhile, the government is taking steps to improve the infrastructure. One promising initiative mandates that all petrol pumps include EV charging stations as well. However, while charging may not strain your wallet, the time it takes is a cost in itself. 'Charging an electric car to 100% can take 2-3 hours, compared to only 10-15 minutes required to refuel an ICE car. This time lag becomes a problem during long journeys,' says Arora. 'In the future, we might have faster chargers widely available, but for now, my vote still goes to ICE.'