Petrol vs EV — 5-Year Cost of Ownership Compared

Total Cost of Ownership (TCO) is the complete cost of owning a car over a defined period, including on-road purchase price (ex-showroom + RTO + insurance), all running costs (fuel, tolls), annual maintenance, insurance renewals, and minus the eventual resale value. TCO gives you a true picture of what a car actually costs you — a ₹10L petrol car can have a 5-year TCO of ₹18L once all costs are included.

EVs have significantly lower running costs — typically ₹1–2/km versus ₹6–8/km for petrol. Maintenance is also 40–60% cheaper due to fewer moving parts. However, the higher upfront cost and lower resale value (due to battery degradation concerns) can offset savings. For high-mileage drivers (1,500+ km/month) in states with cheap electricity like Gujarat, EVs typically become cheaper than petrol within 3–4 years.

Annual maintenance varies significantly by fuel type: petrol cars average ₹15,000–25,000/year, diesel cars ₹18,000–30,000/year (higher service costs offset diesel fuel savings), CNG cars ₹12,000–18,000/year, and EVs ₹8,000–12,000/year. These figures increase ~8% annually with labour and parts inflation. SUVs and luxury brands cost significantly more — budget ₹40,000–80,000 annually for premium vehicles.

RTO registration tax varies by state. For a ₹15 lakh petrol car: Maharashtra charges 11% = ₹1.65L, Karnataka charges 14% = ₹2.1L, Delhi charges 7% = ₹1.05L, and Gujarat charges 6% = ₹90,000. EV owners get significant discounts — Delhi and Maharashtra exempt EVs from road tax entirely. Always add RTO charges when comparing on-road prices across states, as the difference can be ₹50,000–1 lakh.

CNG is typically cheapest per km (₹1.5–2.5/km), followed by diesel (₹3.5–5/km), then petrol (₹5–8/km). However, diesel cars cost more to buy and service, and CNG requires a dedicated tank reducing boot space. For city driving under 1,200 km/month, petrol often wins on total cost. For highway driving above 2,000 km/month, diesel recoupes its premium. CNG is best for commercial or very high daily usage.

Resale value in India depends on brand, fuel type, age, condition, and service history. Maruti Suzuki retains ~70% value at 3 years while most other brands retain 60–65%. Diesel cars retained better value historically, but the trend is reversing as BS6 diesel costs rise. EVs are uncertain due to battery depreciation. This calculator uses industry average depreciation curves — actual resale depends heavily on the specific model and color.

Yes, for most urban drivers. Home charging at ₹5–8/unit yields a running cost of ₹1–2/km for an EV with 5–8 km/kWh efficiency. Public DC fast charging at ₹15–20/unit raises this to ₹2–4/km, still below petrol. Combined with zero road tax in most states, lower insurance IDV, and ₹1.5L income tax benefit on loan interest (Section 80EEB), total 5-year savings versus a comparable petrol car can be ₹3–6 lakh.

Beyond ex-showroom price, watch out for: RTO registration (7–15% of price), first-year comprehensive insurance (2.5–3.5%), extended warranty (₹30,000–60,000), accessories (₹15,000–50,000), parking charges, annual PUC certificate, E-challan fines, and increasing fuel costs. EMI interest on a car loan over 5 years can add 15–20% to the total cost. Always ask for the on-road price with a full breakdown before booking.