"Running cost" usually just means fuel/electricity cost per km. Total cost of ownership (TCO) is the number that actually matters for a buying decision, because it accounts for everything else too.
The components of TCO
- Depreciation: The difference between what you pay and what the vehicle is worth when you eventually sell it. EV resale values are still maturing in India as the market is newer, so depreciation curves are less predictable than for petrol cars with decades of resale data.
- Energy cost: What you actually spend on electricity, which varies hugely by whether you charge at home (cheaper) or rely on public DC fast charging (significantly more expensive per unit).
- Insurance: EV insurance is often more expensive than an equivalent petrol car's own-damage premium — commonly 20-40% higher — because the battery pack (40-50% of the vehicle's insured value) is expensive to repair or replace, even though EVs typically get a discount on third-party premiums.
- Maintenance: EVs have far fewer moving parts (no engine oil changes, no exhaust system, no clutch), so routine maintenance is generally cheaper than a petrol car's — though tyre wear can be higher due to instant torque and battery weight.
- Battery health over time: Not a cash cost unless you replace the battery, but it affects resale value and the vehicle's usable range as it ages — see our EV battery life guide.
Why this changes the "which is cheaper" answer
A vehicle with the lowest running cost per km isn't automatically the cheapest to own if its insurance is high, its resale value drops fast, or its maintenance turns out to include an expensive component you didn't expect. Comparing EVs to each other — or an EV to a petrol equivalent — only on cost-per-km misses a large part of the real financial picture.
Use the calculator, not a rule of thumb
Every one of these components varies by vehicle, your driving pattern, and your local costs. Our Ownership Cost Calculator lets you enter your own numbers — on-road price, expected resale value, annual distance, electricity tariff, insurance and maintenance estimates — and get a real total cost of ownership figure, rather than a generic industry average that may not apply to your situation.
If you're financing the purchase, run the EMI Calculator alongside it, since financing cost isn't included in the ownership calculator by design — the two are meant to be used together.
General cost-driver explanations based on how EV ownership costs are commonly structured in India; use the linked calculators for numbers specific to your situation rather than relying on any figure quoted here.