EVs vs. Fuel-Engine Cars in 2025: A 10-Year Financial & Practical Debate Across India and the U.S.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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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