Financial strategies for electric vehicles in India
What's the story
Electric vehicles (EVs) are the new wave in India, fueled by the desire for a cleaner environment and pushed by the government.
But, that high upfront cost of EVs is like a speed bump for a lot of us.
This article delves into the nitty-gritty of managing your finances like a pro, so you can join the EV revolution without burning a hole in your pocket.
Tip 1
Evaluate Total Cost of Ownership
When evaluating an electric vehicle, don't just look at the sticker price. Consider the total cost of ownership (TCO), which includes purchase price, fuel savings, maintenance costs, and government incentives.
EVs generally have lower operating costs compared to conventional vehicles. For example, charging an EV can be substantially cheaper than fueling a gasoline or diesel car over the long run.
Plus, EVs require less maintenance (thanks to fewer moving parts).
Tip 2
Leverage government incentives
The government of India provides several incentives under schemes such as FAME India (Faster Adoption and Manufacture of Electric Vehicles) to decrease the acquisition cost of EVs.
These encompass direct subsidies on the purchase price and tax benefits.
For instance, buyers can benefit from a subsidy that directly reduces the upfront cost of an electric vehicle by up to ₹150,000 based on its type and specifications.
Tip 3
Opt for green financing options
In India, most banks and financial institutions provide green auto loans specifically designed for electric vehicle purchases at attractive rates.
These loans offer advantages such as longer repayment tenures and lower processing fees, setting them apart from conventional auto loans.
By opting for green financing, you can potentially save a significant amount over the course of the loan.
Tip 4
Consider battery leasing plans
One novel method to mitigate the high upfront cost of an electric vehicle is by opting for a battery leasing plan offered by certain manufacturers.
Instead of purchasing the EV along with its battery (which is typically the most costly part), you lease the battery separately.
This not only lowers your initial expenditure but also offers flexibility to upgrade if superior battery tech becomes accessible in the future.
Tip 5
Plan for charging infrastructure
Before you invest in an electric vehicle, plan your charging infrastructure needs wisely.
If you can charge at home or work, you will save on public charging costs, which can be unpredictable.
A home charging station may have an initial cost but offers convenience, and potentially lower charging expenses over time, compared to relying solely on public charging stations.