Owning an electric two-wheeler is slightly cheaper than petrol and diesel at a time when fuel prices are at a record high
- According to investment bank Morgan Stanley, battery-powered two-wheelers are cheaper to own and run than petrol equivalents.
- Although the fact that EVs are priced significantly higher than the vehicles running on fuel have kept people away from them. But once the infrastructure is in place, the cost really comes down.
- The running cost of an electric two-wheeler is nearly 5% lower compared to a gasoline petrol vehicle, according to Morgan Stanlety.
- Check out the latest news and updates on Business Insider.
AdvertisementThe electric vehicle industry is booming, but the biggest drawback for the consumer is that they are priced much higher than the traditional fuel vehicles. However, at a time when filling-up a full tank of petrol scooters and motorcycles is fast becoming a dream for many, the alternative to it — electric two-wheelers — seems to offer better running price realisation in the long term.
According to investment bank and financial services firm Morgan Stanley, battery-powered two-wheelers are cheaper to own and run than petrol and diesel equivalents. The running cost of electric vehicles is nearly 5% lower annually compared to a gasoline petrol vehicle, the report showed.
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The maths of cheaper electric vehicles
The petrol and diesel prices across the country continued their northward march taking its retail rates to unprecedented levels and burning bigger holes in the consumer's pockets. The electric vehicle as an option weighs heavy.
Although the fact that EVs are priced significantly higher than the vehicles running on fuel have kept people away from them. But once the infrastructure is in place, the cost really comes down to the electricity unit price, which is much lower than the fuel rates. No matter what the price of crude oil is around the world, in India, the average fuel rates have always remained at ₹70 and ₹80 per litre for diesel and petrol, respectively.
Under the bare minimum conditions, the math becomes even clearer — unit price of electricity multiplied by battery size is equivalent to the cost of running an EV. This also eradicates high fuel costs and provides cheaper maintenance and tax. Electric vehicles also hold their value for longer compared to fuel vehicles, according to a Europe-wide study by Leaseplan.
Here is how owning an electric two-wheeler can be much cheaper than a petrol two-wheeler
Source: Morgan Stanley
|Particulars||Electric two-wheeler||Petrol two-wheelers|
|Life||10 years||10 years|
|Amortised annual cost||₹11,500||₹8,389|
|Annual electricity/fuel cost||₹2,127||₹12,483|
|Annual maintenance + insurance||₹3,000||₹4,300|
|Amortised annual battery cost||₹7,500||₹0|
|Total annual cost of operation||₹24,127||₹25,173|
|Total annual cost of operation (per KM)||₹3.4/KM||₹3.5/KM|
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Wholesale growth expected to continue for tractors, passenger vehicles and two-wheelers, says equity research firm Emkay
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