One of the biggest costs of driving any petrol or diesel car is the cost of fuel. Electric cars, however, offer tremendous cost savings because electricity rates are low and less volatile compared to oil prices.
At PluginIndia, we have been driving electric cars for 7+ years, and we know how cost efficient and convenient electric cars are from real-world experience!
VIDEO : How much does it cost to charge Tata Nexon EV? (HUGE SAVINGS!)
All of us understand the costs associated with petrol vehicles because we have grown up driving or being driven in them, whether we had a two- or four-wheeler or we took the bus to school or college or work. One of the first things you do when calculating costs is dividing the cost of petrol in your city by the real-world city mileage of your car. This will give you the per km cost of driving the car.
For example, the Tata Nexon Petrol AMT, which starts at Rs 8,30,000, is a good car to compare with the Tata Nexon EV.
The Tata Nexon AMT gives a real-world city mileage of 11 km per liter. Let's say you drive 12,000 km every year. With a petrol price of Rs 76 per liter, we’re looking at 1091 liters of petrol consumed per year. So, your petrol costs in the Tata Nexon AMT will add up to Rs 82,916 per year.
If you use this car for 8 years, your total fuel consumption would be 8728 liters, and the amount of money you’ll have spent on it would be a jaw-dropping Rs 6,63,328.
Remember this number because we’ll get back to it later.
Tata Nexon EV Costs
With the Tata Nexon EV or any electric car for that matter, you have to calculate costs differently. First, you find out the energy density of the Nexon EV’s battery pack. Energy density is the amount of electricity that can be stored in a battery. It’s easy to find. Just consult the car brochure or manual or ask the salesman. And when in doubt, the internet is your friend! Coming back to the Nexon EV, the battery stores 30.2 units of electricity per charge. Next, you need to calculate the real-world range offered by the Tata Nexon EV in the city.
You divide the energy density by the range and multiply this with the per-unit electricity cost in your city to give you the per km cost.
So, in the case of the Tata Nexon EV, the energy density of the battery pack, 30.2 kWh, is divided by the real-world city range, 250 km, this is multiplied by the per-unit electricity cost, which would be about Rs 6 per kWh (kiloWatt hour). Therefore, the per-Km cost would be Rs 0.724.
A kWh or a unit of electricity in India costs anywhere between Rs 4 to Rs 15 depending on your state and on whether you have a residential or commercial connection.
Now, if you are considering buying the Tata Nexon EV, let's say you drive 12,000 km every year, the same as with the Tata Nexon AMT. With a per km cost of Rs 0.724, your electricity costs will add up to Rs 8,688 per year.
The Tata Nexon EV has an 8-year warranty on its battery, so you won't have to worry about battery replacement costs for 8 years, which is a tremendous relief.
If you use the Tata Nexon EV for those 8 years, your total fuel costs would be only Rs 69,504.
What’s more, if you are eligible for discounted electricity rates during off-peak hours in your city, this will further lower your EV charging costs.
To summarize, your petrol automatic Nexon will consume petrol worth Rs 6,63,328 over 8 years, whereas your electric Nexon will consume electricity worth only
Rs 69,504 over the same period.
This means you’ll save a massive Rs 5,93,824 in fuel costs alone!
Also remember that oil is a finite resource with costs of drilling, extraction, and transportation getting higher each day. The cost of oil keeps fluctuating, but the trend has been an upward one for decades. Further, with India importing most of its oil, the price can fluctuate based on the global geopolitical situation. Basically, so long as we keep importing oil, the countries we import it from have carte blanche to take full advantage of us.
Electricity, on the other hand, poses no such problems. India can generate electricity locally, and the price is not dependent on geopolitics and is largely stable.
India also generates 20% of its electricity from renewable energy, and this percentage is expected to grow exponentially in the coming years as we invest in solar technologies.
Therefore, as the years go by, it will actually get cheaper to drive your Nexon Electric! Meanwhile, driving the Nexon Petrol AMT will only become more expensive.
You can visit the PluginIndia electric cars page and take a look at the numbers for the Nexon EV and other electric cars. We have interactive calculators, long-term ownership costs, and much more!
We hope this episode of EV guru answered any questions you might have about the fuel costs of the Nexon EV. Remember, by going electric, you’re not only saving a ton of money, you’re also benefiting your city, your country, and your environment. So don’t be thick; drive electric!