
As the world shifts towards sustainability, the debate between Electric Vehicles (EVs) and Fuel-Engine Cars is heating up, especially in 2025. While environmental concerns are a big motivator, financial considerations remain crucial for buyers in India and the U.S. This blog will offer an in-depth 10-year financial comparison, analyzing cost per kilometer/mile, purchase options (loan vs. upfront), maintenance, depreciation, and resale value. Additionally, we will explore the impact of EV adoption on traditional petrol car mechanics, vendor lock-in, and differences in the Indian and U.S. automotive landscapes.
Contents
- 1 1. Upfront Costs: Purchase Price & Government Incentives
- 2 2. Fuel vs. Charging Costs: Cost Per Kilometer/Mile
- 3 3. Maintenance & Repair Costs
- 4 4. Depreciation & Resale Value
- 5 5. Long-Distance Travel & Charging Infrastructure
- 6 6. Weather Impact: Battery vs. Engine Performance
- 7 7. Effect on Traditional Car Mechanics & Vendor Lock-In
- 8 Final 10-Year Financial Comparison: EV vs. Fuel Cars
- 9 Conclusion: Is an EV Worth It in 2025?
1. Upfront Costs: Purchase Price & Government Incentives
India
- EVs: ₹15–₹30 lakh ($18,000–$36,000) depending on model and battery size.
- Fuel Cars: ₹8–₹20 lakh ($9,600–$24,000) for petrol/diesel equivalents.
- Subsidies & Incentives:
- EVs benefit from FAME II subsidies (₹1.5–₹3 lakh or $1,800–$3,600).
- Lower GST on EVs (5%) vs. petrol/diesel cars (28%) reduces effective cost.
U.S.
- EVs: $35,000–$60,000 (₹29 lakh–₹50 lakh).
- Fuel Cars: $25,000–$40,000 (₹21 lakh–₹33 lakh).
- Subsidies & Incentives:
- Federal tax credits up to $7,500 (₹6.25 lakh).
- Some states (California, New York) offer additional incentives.
🔹 EVs in India are still relatively more expensive than their U.S. counterparts, even after subsidies, due to import dependencies and battery costs.
🔹 In the U.S., tax credits and incentives help narrow the price gap.
2. Fuel vs. Charging Costs: Cost Per Kilometer/Mile
One of the biggest long-term considerations is fuel (petrol/diesel) vs. electricity costs.
India
- Petrol/Diesel Costs: ₹100/liter ($1.2/liter)
- EV Charging Costs: ₹7–₹12 per kWh ($0.08–$0.14 per kWh)
- Mileage:
- Petrol: ~15 km/liter (37 mpg)
- Diesel: ~20 km/liter (47 mpg)
- EVs: ~6 km per kWh (~3.7 miles/kWh)
🔹 Per km cost comparison (2025 estimates)
- Petrol car: ₹6.67/km ($0.08/mile)
- Diesel car: ₹5/km ($0.06/mile)
- EV: ₹1.67–₹2/km ($0.02–$0.03/mile)
U.S.
- Gasoline Costs: $3.50/gallon (₹290/gallon or ₹76/liter)
- EV Charging Costs: $0.15–$0.25 per kWh (₹12–₹21 per kWh)
- Mileage:
- Gasoline: ~25 mpg (10.6 km/liter)
- EV: ~4 miles per kWh (6.4 km per kWh)
🔹 Per mile cost comparison (2025 estimates)
- Gasoline car: $0.14/mile (₹11/km)
- EV: $0.03–$0.06/mile (₹2.5–₹5/km)
📌 Verdict: EVs are 60–80% cheaper per km/mile than fuel cars in both countries, but savings depend on electricity pricing and charging infrastructure.

3. Maintenance & Repair Costs
India
- Fuel Cars: ₹10,000–₹30,000/year ($120–$360)
- EVs: ₹5,000–₹15,000/year ($60–$180)
- Battery Replacement (8-10 years): ₹5 lakh ($6,000)
U.S.
- Fuel Cars: $500–$1,000/year (₹42,000–₹83,000)
- EVs: $300–$600/year (₹25,000–₹50,000)
- Battery Replacement (8-10 years): $8,000–$15,000 (₹6.7–₹12.5 lakh)
🔹 EVs require fewer moving parts, reducing wear and tear costs. However, battery replacement remains a key expense in long-term ownership.

4. Depreciation & Resale Value
India
- Petrol/Diesel Cars: ~50% value drop in 5 years.
- EVs: ~55% value drop in 5 years (battery degradation concerns).
U.S.
- Gasoline Cars: ~40% depreciation over 5 years.
- EVs: ~50% depreciation (Tesla models depreciate slower).
📌 Verdict: EVs lose value faster currently, but improvements in battery tech may change this in the future.
5. Long-Distance Travel & Charging Infrastructure
- India:
- Highway charging is limited but growing.
- Range Anxiety still a concern (most EVs offer 300–500 km per charge).
- Petrol pumps are still more convenient.
- U.S.:
- Tesla’s Supercharger network widely available.
- Range of 400–500 miles on premium EVs.
📌 Verdict: Long trips are still easier with fuel cars, but EV charging is improving.
6. Weather Impact: Battery vs. Engine Performance
- Cold Climates (U.S. & Northern India):
- EVs lose 20–40% range in winter due to battery inefficiency.
- Fuel cars have better winter reliability.
- Hot Climates (India & U.S. South):
- EVs overheat if charging infrastructure lacks cooling.
- Fuel cars perform normally.
📌 Verdict: Fuel cars remain more reliable in extreme climates, but battery innovations are addressing these concerns.
7. Effect on Traditional Car Mechanics & Vendor Lock-In
- EVs are disrupting traditional petrol/diesel car servicing, leading to job losses among mechanics.
- Most EV manufacturers (Tesla, Tata, Rivian) use proprietary systems, making repairs expensive outside authorized service centers.
- Vendor lock-in (software updates, battery replacements) increases long-term costs for users.
📌 Verdict: EVs may limit DIY repairs, leading to monopolization by automakers.
Final 10-Year Financial Comparison: EV vs. Fuel Cars
Factor | EV (India) | Fuel Car (India) | EV (U.S.) | Fuel Car (U.S.) |
---|---|---|---|---|
Upfront Cost | ₹15L–₹30L | ₹8L–₹20L | $35K–$60K | $25K–$40K |
Fuel/Energy Cost (10 Years) | ₹1.5L–₹3L | ₹6L–₹12L | $3K–$6K | $12K–$20K |
Maintenance (10 Years) | ₹1L | ₹2L–₹3L | $3K | $5K |
Battery Replacement | ₹5L | N/A | $10K | N/A |
Resale Value | ~50% loss | ~50% loss | ~50% loss | ~40% loss |
Total Cost Over 10 Years | ₹22L–₹40L | ₹18L–₹35L | $45K–$70K | $45K–$65K |


Conclusion: Is an EV Worth It in 2025?
✔ EVs are more cost-effective in daily running but suffer from high upfront costs and depreciation.
✔ Fuel cars remain reliable for long trips and extreme climates.
✔ EV infrastructure is improving, making them a smarter choice for urban commuting.
📌 Final Thought:
If you drive frequently and plan to keep the car for 8+ years, an EV is a wise financial choice. If you need long-distance reliability and resale value, fuel cars still make sense.
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