Hidden Costs of Owning an Electric Vehicle (EV) in India: What You Must Know Before Buying
Cleaner, less expensive, and more environmentally friendly, electric vehicles (EVs) are frequently promoted as the mobility of the future. But, especially in India, is owning an electric vehicle really cost-effective? While there’s no doubt that EVs offer benefits like lower emissions and fewer moving parts, it’s crucial to look beyond the sticker price. Many first-time EV buyers are unaware of the hidden costs that come with owning and operating an electric vehicle.
In this blog post, we discuss the lesser-known costs of EVs in India, such as the installation of chargers, battery degradation, difficulties with public charging, and costly repairs. If you’re considering an EV, this is the guide you need before making a decision.
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The Illusion of “Free Charging Infrastructure”
When you buy an EV, manufacturers may advertise bundled charging options, but don’t be fooled. Most top-end EVs don’t come with a fast charger (7.2 kW) included. This must be purchased separately and typically costs between 50,000 and 60,000 yen, including taxes. While a smaller 3.2 kW charger may be cheaper, it significantly increases charging time—up to 12 hours or more.
This is more than just a problem; it is also a hidden cost in terms of both time and money, especially for businesses that need to charge customers quickly and frequently. Many owners eventually upgrade, adding to the total EV ownership cost in India.
2. Electrical Load Upgrade—A Mandatory Expense
A reality check: purchasing a charger alone is insufficient.
Most Indian apartments have a power agreement (load) of just 4–8 kW.
To use a 7.2 kW charger safely, you may need to increase your sanctioned load—an expensive and bureaucratic process involving
- Paying for new meters and cables
- Possible bribes (unfortunately common in certain areas)
- Installation fees to electricians or local utility engineers
- Wiring that may require additional society permissions and NOCs
- In order to increase your electricity capacity, for instance, you will need to collaborate with MSEB in Maharashtra. The entire process can cost tens of thousands of rupees and several days of paperwork.
3. Public Charging: Convenient but Costly
- Public charging is the preferred option while your home charger is being installed.
- However, not everyone believes it to be as cost-effective.
- Public EV charging ₹18–₹20 per kWh.
- For a 40 kWh battery, that’s around ₹800 per full charge—significantly more than home charging.
In addition, you will have to deal with a variety of apps and service providers (Tata Power, Statiq, etc.), all of which frequently require registration steps, minimum balance requirements, and wallet top-ups. These steps not only consume time but also force you to keep money locked in multiple wallets.
4. Battery Degradation—A Silent Killer
One of the biggest concerns in EV ownership is battery degradation, which significantly impacts your vehicle’s resale value and performance. Frequent fast charging, especially from public stations, accelerates this wear.
Fast charging is comparable to fast food: it serves its purpose, but frequent use can make your electric vehicle less “healthy.” Manufacturers of electric vehicles like Tata recommend charging at home whenever possible to extend the battery life. If your battery fails or degrades significantly, replacements can cost between ₹2 and 5 lakhs.
5. Cold Weather = Less Range
- Although it may resemble physics class, this is significant.
- In colder temperatures, EV batteries struggle to maintain efficiency.
- The range drops, sometimes significantly, meaning more frequent charges and longer travel times.
- Although this might not affect users in tropical areas, it’s a real issue in North India during winters.
- If you rely on your EV for long commutes, this factor becomes a serious consideration.
6. Insurance Premiums Are Higher
- While EVs are supposed to have fewer moving parts and lower maintenance, insurance companies think otherwise.
- Insurance premiums for electric vehicles typically are higher than those for gasoline or diesel vehicles due to the high costs of batteries and the need for specialized repairs.
- This becomes a recurring yearly expense.
- Additionally, the insurance bracket is further impacted by the fact that on-paper EV prices frequently rise as a result of government subsidies or equipment costs.
7. Specialized Repairs, Less Accessibility
- EV owners face a significant challenge when it comes to post-warranty repairs. EVs necessitate the use of specialized diagnostic equipment and skilled technicians.
- You must rely on authorized service centers because regular local mechanics frequently cannot fix EV issues.
- If your EV runs into a software or hardware issue outside warranty, expect long wait times and higher repair bills—sometimes 20–25% more than for ICE (internal combustion engine) vehicles.
Because they are “EV-specific” and cannot be substituted for those of regular automobiles, even minor issues like a malfunctioning control unit or onboard computer can result in additional costs of tens of thousands of dollars.
8. Low Resale Value
While petrol and diesel cars can often retain decent resale value, EVs depreciate faster, largely due to battery concerns. Buyers are wary of purchasing used EVs without knowing the real condition of the battery or its remaining life.
In fact, dealers often offer 30–40% less for used EVs, even if the condition is good.
The second-hand EV market in India is still underdeveloped, and until a reliable battery inspection system becomes common, this will remain a problem.
9. Software Feature Subscriptions In an era when everything is a subscription, some EV manufacturers are encrypting software features behind paywalls.
Whether it’s heated seats, advanced navigation, or even driving assist features, you’ll have to pay monthly or yearly for access.
This is yet another method by which manufacturers boost profitability while simultaneously transforming car ownership into a recurring cost model—something that is uncommon for conventional automobiles.
10. Time is Money—Charging Delays
- EVs take time to charge, and while some people are okay with overnight charging, others value flexibility.
- On long road trips, finding a charger, waiting for a slot, and then spending 30–60 minutes at the station can be frustrating.
- If you’re someone who values time and spontaneity, this delay may become a regular annoyance—especially compared to a 5-minute petrol pump visit.
Last thoughts: Do electric vehicles have any value?
- EVs are certainly the future of mobility, but in the Indian context, buyers must understand that “cost-saving” doesn’t always equate to “cheaper.”
- From charging setup to battery replacement, the hidden EV costs in India can add lakhs to your total spend—something most buyers realize only after the purchase.
- An electric vehicle (EV) can be a great investment if you plan on owning it for a long time, are comfortable with the learning curve, and have the infrastructure in place.
- However, a conventional vehicle may still be the more practical choice for short-term use or cost savings.