Electric vehicles (EVs) are all the rage today! Because they don’t have any mechanical gears, they’re easy to manoeuvre and offer a comfortable driving experience. They also have low running and maintenance costs in comparison to gasoline-powered vehicles, thus adding to your savings. However, before you dive in headfirst and make a purchase, you must know what you’re getting into.
Here are some things you need to know before purchasing electric cars in India.
Without a doubt, electric cars are expensive, at least in India. Consider this: An electric hatchback like Strom Motors R3 has a showroom price of Rs. 4.5 lakhs. With insurance and other costs, the purchasing price would be about Rs. 6 lakhs. However, since electric cars have a low running cost than their traditional counterparts, you will save money in the long run.
An electric car needs an average of 5 units of electricity per day to cover 50 kilometres, which will cost you about Rs. 30. In comparison, a gasoline-powered car requires about 3 litres to travel the same distance and costs you Rs. 270.
EVs also have a lower maintenance cost, as they have fewer moving parts. The only considerable expense is the battery. An electric car needs a battery change every 5-6 years. Depending on your vehicle type, the price may range from Rs. 50,000 to Rs. 2 lakhs. However, with an extended warranty and a personal loan for an electric car, you can easily plan your expenses, so it doesn’t affect your monthly budget.
Additional Read: All you need to know about electric two-wheeler industry in India
The charging infrastructure for EVs is not as accessible as fuel stations in India. While metro cities have adequate charging stations, the same may not be the case in smaller cities as of now. However, the charging technology has undoubtedly made the process easier. You can simply install a charging set-up at home for faster charging or use a regular socket.
Electric cars in India are available in a wide range of charging options, from standard and slow charging to fast charging capabilities. While fast charging stations are expensive to install and rarely available, standard charging is more feasible, which you can also install at home.
If an EV offers a decent range but takes a long time to charge, it might dampen your daily commute or urgent travel plans. Most top EVs in India come with a charging capacity of 0 to 80 percent in one hour. So, do check these charging options and choose an EV that charges from zero to full in the least possible time.
The EV market is consistently growing, and you have several variants of electric cars in India to choose from. If you’re looking for an eco-friendly vehicle, you can go for a fully electric car. However, if you are not ready to switch from a fuel-powered vehicle, you can choose a hybrid vehicle. Hybrid vehicles work both on fuel and electricity, allowing you to test the feasibility of driving an EV and contribute positively to the environment.
Now, the average driving range of an electric car is between 100 to 400 kilometres. Whether you need a vehicle for your daily commute or to take long drives, you can choose a model depending on your commuting needs. In any case, if cost is an issue, you can always take a personal loan to buy a suitable electric car in India. Since EVs have a relatively long life compared to gasoline-powered vehicles, you can find yourself a good deal!
Additional Read: What is a Hybrid Car? How Exactly Does it Work?
The quality and life of the battery pack of the EV are just as crucial as a higher battery capacity. Electric cars come with powerful batteries, but they are one of the most expensive parts of an EV. And any malfunction in the battery pack can put a hole in your pocket.
As a result, you may want to check the battery life and the warranty offered by the EV manufacturer. Most brands of electric cars in India offer a warranty of 8 years or up to a certain distance run on the EVs battery. Thus, it is best to go for a long-term warranty to ensure the longevity of your electric car.
Incentives and Tax Benefits
To encourage the use of eco-friendly transportation in the country, the state and central government of India are actively promoting the sale of electric cars in India with exciting tax benefits and incentives. In fact, you can also avail reduced GST on the price of the EV, thus further reducing the cost of your purchase.
If you are planning to take a loan to finance the cost of the EV, you must look into the tax benefits that come along with it. Under section 80EEB of the ITA, you can enjoy tax savings of up to Rs. 1,50,000 on the interest payments of your auto loan to purchase an EV. These tax benefits can make switching to an EV much more affordable on the pocket.
Let Tata Capital finance your electric car
Got your heart set on an electric car model? Don’t think twice! Let Tata Capital finance your brand-new EV. You can avail of a quick loan with only minimal documentation. We offer collateral-free loans with an overdraft facility and personal loan interest rate starting at just 10.99%.What’s more, you can calculate your EMI amount and other details instantly with our personal loan EMI calculator. Visit the Tata Capital website for more information.