Users wanting to buy a new 2-wheeler are considering the option of electric scooters. Their motivation to buy an electric vehicle is based on a) interest to reduce the carbon footprint and/or b) to save on running costs. This article throws some light on the latter, that is the running cost of an electric scooter.
So, is it really true that EV running costs are lower than ICE vehicles (Internal Combustion Engine/ Petrol vehicle)? How long or how much usage does it take to derive reasonable benefits given the higher purchase cost of electric vehicles? In this regard, let’s compare EVs and ICEs based on the following parameters:
- Ex-showroom price
- Fuel cost
- Subsidies
- Road Tax cost
- Maintenance cost
- Insurance cost
The goal of this article is to highlight how these parameters affect the long-term costs (known as Total Cost of Ownership, TCO) of scooters.
We have considered all the above-mentioned parameters influencing the total cost of running a scooter. The calculations were done for a 5 year period. The user is taken as a typical college going student or an office going employee – we have considered 2 scenarios here (1) one who drives 1000 km/month and (2) and the other who drives 2000 km/month.
For the sake of comparison, we have taken an ICE scooter and a similar EV rival. We have assumed that the scooters are in good condition every day and charging/re-fuelling practices are followed correctly.
Based on our calculations for TCO, we have arrived at the following table.
Now, let’s delve into the 6 most important parameters that affect each scooter case.
- Ex-showroom price
For our current case and time, the ex-showroom cost of the ICE Scooter and the Electric Scooter is shown in the table below. This is assuming that the loan and EMI initiatives are not taken by the student. Thus, the ICE Scooter is already at an economic advantage of Rs. 69,300 compared to the Electric Scooter. This means the student needs to have the necessary upfront liquid cash in order to purchase an EV as stated before.
2. Fuel Cost
When it comes to fuel costs, it is to be noted that whichever scooter has the least fuel to mileage ratio will be the winner. For our calculations, we take the mileage of the ICE Scooter as 50 km/l and Electric Scooter as 116 km on a full charge as per specifications given. The cost of petrol and electricity are taken as Rs.100/l and Rs. 7/kWh respectively and treated as static values. Additionally, the capacity of the Electric Scooter battery is taken as 3 kWh as per specifications.
In the first table, we can see that EVs pack a punch when it comes to fuel savings (> Rs. 1 lakh) over 5 years in both cases. However, it is to be noted that fuel cost calculation for EVs assumes a unit energy consumption cost of Rs. 7. This value could change based on the region considered in India and the entire calculation will change for an EV with a different battery capacity. Also, it is assumed that fast-charging stations with typically a higher unit energy consumption cost are not used by the student but rather home charging is used instead. This is a reasonable assumption since the student has the entire night to charge his scooter in his home.
3. Maintenance cost
Generally, the maintenance cost of an ICE scooter becomes progressively more expensive as it ages compared to EVs assuming no battery replacement costs. This is because the ICE scooter is made up of more movable parts which are prone to damage as the scooter functions for a long time. These include clutch, engine, radiator, piston, transmission, spark plugs, fuel pumps, cooling systems, exhaust systems just to name a few.
Additionally, EVs are equipped with regenerative braking. It can be used instead of slamming the brake pads like in ICE scooters to ensure a longer life for the braking systems in EVs. Looking at the table below, we see how the maintenance costs are distributed for the two-scooter types based on several parameters over 5 years.
From the table, we see that for both cases over 5 years, the ICE Scooter beats the Electric Scooter by the same cost of around Rs. 40,000. Thus, the result is contrary to what was assumed before. This is attributed to the high battery replacement cost associated with the Electric Scooter.
It is to be noted that battery costs are on a decreasing basis every year. Some electric scooters like Ather themselves have claimed that their battery replacement cost would only be Rs. 40,000 in 3 more years which exactly corresponds to their warranty period. However, we have taken a static battery replacement cost to simulate the worst-case scenario.
4. Insurance cost
The insurance cost of EVs is usually more expensive than their ICE equivalents because of their higher initial value. The insurance premium to be paid by the customer is usually dependent on the value of the vehicle each year. Based on published data, we displayed the insurance costs for electric scooters as Rs. 26000 and for ICE scooters as Rs. 11000 over a period of 5 years.
5. Subsidies
In India, we have state-wise subsidies offered to EVs upon their purchase based on the kWh rating of their battery. For our case, let’s assume that the student is residing in the Delhi area. Therefore, as per the above table, we have a subsidy on the ex-showroom price for an EV at Rs. 15000.
6. Road Tax Cost
We have already assumed that the student resides in the Delhi area. Therefore, as per the above table, he gets a 100% road tax rebate for EV. On the other hand, when he drives the ICE Scooters, the road tax will not be rebated. Road tax is typically paid once a year. In our case, we determine the road tax for the ICE scooter chosen for Delhi as Rs. 6100 to be paid by the student after 5 years of usage.
Conclusion
In this blog, we have qualitatively and quantitatively described the various parameters which affect the TCO of electric and ICE scooters.
With a 1000 km/month usage, Electric Scooter is more or less comparable to the ICE Scooter. However, with a 2000 km/month usage the Electric Scooter has a good bargain in the TCO which is greater than Rs. 1 Lakh. This is attributed to the high fuel costs in ICE scooters compared to EVs.
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At Nesh, we provide plug-and-play & ready to use full-stack technology solutions that enable Electric Vehicle manufacturers (EV’s) to easily collect, transform, and transfer vehicle data to the cloud in near-real-time. Once the data is in the cloud, we use advanced analytics & machine learning algorithms to provide an indication to the user on various factors like drivability, low charge alerts, high-speed alerts, nearest charging station locations, predicted range with the current conditions of driving and many more such features.
We also work closely with EV OEMs to monitor vehicles in terms of battery state of health, battery temperature, ambient temperature, and alerting users towards battery maintenance best practices. With all this information and actionable alerts, the users can keep the maintenance costs predictable which in turn assists in a quicker return on investments.
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