Buying an Electric Car in India (2025): What You Should Know
Buying an Electric Car in India (2025): What You Should Know
Electric vehicles (EVs) are steadily gaining popularity in India, but making the switch comes with important trade-offs.
In 2024, around 100,000 EVs were sold, accounting for just 2.5% of total car sales. The government aims to push this to 30% by 2030. Tightening emission norms and rising fuel costs have prompted automakers like Tata, MG, Mahindra, Maruti — along with new entrants VinFast and BYD — to plan dozens of EV launches in 2025, promising longer ranges and faster charging (some models can now charge from 20% to 80% in under 20 minutes).
However, key questions remain: What are the real costs of owning an EV today, and is India’s charging network ready? Here’s a detailed guide to help you make an informed choice.
Government Policies and Incentives
The Centre and several states are encouraging EV adoption through a mix of regulations and incentives.
Since 2019, all new petrol pumps must offer alternative fuels like CNG, biogas, or EV charging. Today, nearly 10,000 fuel stations offer EV charging options. Oil companies like BPCL have also developed over 90 fast-charging corridors covering 30,000 km of highways.
The FAME (Faster Adoption and Manufacturing of EVs) scheme has so far focused on public transport and commercial vehicles, with minimal direct subsidies for private car buyers since 2019. However, FAME-3 is expected soon.
Some states offer benefits like waived road tax, registration fee exemptions, and limited purchase rebates. For instance, Delhi’s EV policy offered up to ₹1.5 lakh subsidy for the first ~1,000 private EV buyers.
Though direct cash subsidies are few, EV owners can still save through tax benefits (like ₹1.5 lakh interest deduction under Section 80EEB), lower insurance rates, and reduced manufacturing costs as domestic battery production grows.
Running Costs and Maintenance
One of the biggest advantages of EVs is their lower operating cost.
Electricity costs ₹1–1.5 per km versus ₹8–10 per km for petrol cars. Over 5–6 years, high-mileage drivers (10,000 km+ annually) can recover an EV’s higher upfront cost through fuel savings alone.
Maintenance is also cheaper — EVs have fewer moving parts, no oil changes, and reduced brake wear thanks to regenerative braking. Overall, annual maintenance costs can be up to 75% lower than for petrol vehicles.
The major long-term expense remains battery replacement, which today costs around ₹3–4.5 lakh. Fortunately, most EV makers now offer battery warranties of 5–8 years.
Hidden Costs to Watch Out For
Home Charging Setup:
Installing a home charger can add ₹30,000–₹50,000 to your initial expense. A typical 7–11 kW charger costs ₹40,000–₹75,000, with additional installation fees depending on your home’s wiring setup.
Insurance:
EV insurance premiums are 15–25% higher than for petrol cars, mainly due to expensive battery costs. Opting for zero-depreciation and battery cover add-ons is highly recommended. Some insurers now offer EV-specific policies.
Depreciation and Resale:
Used EVs currently depreciate faster than petrol cars. After 5–7 years, an EV may retain only 10–15% of its original value, compared to 40–50% for a petrol vehicle. Battery performance concerns and a small second-hand EV market contribute to this trend. Manufacturers are now introducing certified pre-owned programs and extended battery warranties to counter this.
Charging Time and Long-Distance Travel
Charging time and availability remain key concerns.
Typical charging times:
– Fast DC charger: 30–60 minutes (up to 80% charge)
– Regular home socket (15A): 6–8 hours (full charge)
Long-distance travel requires planning, although highway charging infrastructure is improving, with chargers now roughly every 100 km on major corridors. Metro cities like Mumbai, Delhi, and Bangalore have better public charging access, but smaller cities still lag behind.
For daily commutes under 200 km, EVs are highly practical. For long trips, flexibility and planning are necessary.
Summary: Should You Buy an EV?
Owning an EV offers clear fuel and maintenance savings, plus environmental benefits, but demands a higher upfront investment and careful planning.
Government policies are gradually improving infrastructure and support. Buyers should budget for a home charger, choose insurance wisely, and understand battery warranties thoroughly.
If you have daily driving needs and easy charging access, an EV can repay its premium in just a few years.
For now, EVs work best as a second car or for city driving.
