Switching to an electric vehicle (EV) is an exciting step, especially in a country like India, where EVs are rapidly gaining popularity. EV buying is a carefully taken step.

But navigating the process can be tricky if you’re unfamiliar with EVs and how they fit into the Indian landscape.

This guide is designed to help you make an informed decision on buying and maintaining an EV in India, referencing popular models.

In this guide, we’ll go through the basics of owning an EV, how to maintain one effectively, financing options, and more juice for Indian EV owners.

Why Buy an EV in India?

EVs come with numerous benefits, especially in India’s rapidly evolving transportation scene. Some key reasons why you should consider buying an EV:

• Lower Running Costs: The cost per kilometer in an EV is significantly lower than petrol or diesel vehicles. According to reports, fleet operators in India save up to 50% on operational costs by switching to EVs.
• Government Incentives: The Indian government offers tax incentives and subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative, reducing the overall cost of buying an EV.
• Environmental Benefits: EVs contribute to cleaner air by producing zero tailpipe emissions, a crucial advantage in India’s urban centers that grapple with high pollution levels.

Popular EV Models in India

India has witnessed a surge in electric vehicle options. Here are some of the leading choices:

• Tata Nexon EV: As one of the top-selling EVs in India, the Nexon EV offers a great blend of affordability and range, making it a solid choice for Indian buyers. With an impressive range of 312 km per charge, it’s perfect for daily commutes.
• Citroën ëC3: A newer entry into the Indian EV market, this compact SUV offers a unique design and competitive pricing. It’s ideal for city driving with its range and features tailored for Indian roads.
• Tata Curvv EV (Upcoming): Tata’s upcoming Curvv EV promises to revolutionize the Indian market with its futuristic design, and long-range, and advanced tech features. While still in its initial phase, it’s worth considering if you’re thinking of a near-future purchase.
• Mahindra XUV400 EV: This electric SUV is known for its robust design and spacious interiors. With a range of around 456 km, it’s well-suited for both city drives and longer journeys.
• Hyundai Kona Electric: A premium offering in the EV segment, the Kona Electric combines style with performance. It boasts a range of about 452 km, along with features like a sunroof and advanced infotainment system.
• MG ZS EV: The MG ZS EV has gained popularity for its impressive range of up to 461 km and features such as a panoramic sunroof and connected car technology, making it a smart choice for tech-savvy buyers.
• Tata Tiago EV: This compact hatchback offers an entry-level electric vehicle option with a range of 250 km, making it accessible and practical for city commuting.
• BYD Atto 3: A global player making its mark in India, the Atto 3 offers a stylish design, a range of approximately 521 km, and advanced safety features, appealing to urban drivers looking for a modern EV experience.

Things to Consider Before Buying an EV

Before purchasing your EV, it’s important to factor in a few key elements. We have mentioned the three most important ones:

• Range and Battery Life: One of the biggest considerations when buying an EV is its range — the distance it can travel on a single charge. For city driving, a range of around 200–300 km should suffice. For longer commutes, look for models offering more range, such as the Tata Nexon EV Max (up to 437 km).
• Charging Infrastructure: Although charging stations are growing across India, it’s important to check the availability of charging points in your city or state. Cities like Delhi, Bengaluru, and Mumbai are well-equipped, but rural areas may still lack adequate charging infrastructure.
• Battery Replacement Costs: While EVs have lower maintenance costs than conventional cars, battery replacements can be expensive. Fortunately, most EVs come with a warranty on the battery (usually 8 years or more), but it’s essential to know what you’re covered for.

EV Charging Options: AC vs. DC Charging

There are two primary charging methods: AC (slow) and DC (fast) charging. AC charging is more suited for home installations, allowing you to charge your vehicle overnight. This method is not only more affordable but also better for the long-term health of your battery.

Related: AC vs DC Charging in Electric Vehicles

DC fast charging, on the other hand, is available at public charging stations and can charge your EV in a fraction of the time, but it’s often more expensive and may degrade battery life faster over time.

For example, Tata’s Nexon EV supports both AC and DC charging, offering flexibility depending on your needs.

Maintenance Tips for Your EV

Owning an EV is easier in many ways compared to traditional petrol or diesel vehicles.

However, there are still some crucial maintenance tips to ensure the longevity of your EV:

• Regular Battery Checks: The battery is the heart of your EV. To keep it in optimal condition, charge it regularly but avoid letting it drain to zero or overcharging it frequently.
• Tire Maintenance: EVs are typically heavier due to their batteries, which can wear down tires faster than conventional vehicles. Regularly check tire pressure and rotate your tires to ensure even wear.
• Software Updates: EVs rely heavily on software to manage battery performance, regenerative braking, and other features. Manufacturers like Tata frequently roll out updates, so it’s important to keep your EV’s software current.
• Brake Maintenance: Thanks to regenerative braking, EVs generally have less wear and tear on their brakes. But it’s still important to have your brakes checked during regular service visits.

Charging at Home vs. Public Charging

One of the biggest questions new EV owners face is whether to charge at home or rely on public charging stations. Here’s a quick comparison:

• Home Charging: Installing a home charger is a convenient and cost-effective option. With a standard AC charger, it will take 6–8 hours to fully charge your EV, perfect for overnight charging.
• Public Charging: If you travel long distances regularly, you might need to rely on public fast chargers. Fast chargers can charge your EV up to 80% in just 30–60 minutes, but they are pricier than home charging and can reduce battery health over time.

To know in depth about this topic, we’d suggest you read our guide on public vs home EV charging, where we have explained comprehensively how each type of charging works.

Key Considerations for First-Time EV Buyers in India

When you’re buying your first EV in India, there are a few extra considerations you should keep in mind to make sure you’re getting the best vehicle for your lifestyle:

Resale Value:

While the resale market for EVs in India is still growing, it’s important to consider how long you plan to keep your EV. Given that battery technology is rapidly evolving, newer EV models may offer better range and performance, which could affect resale value. The good news is that as more people switch to EVs, we can expect the resale market to stabilize.

Insurance Costs:

EV insurance tends to be slightly higher than for traditional vehicles due to the cost of repairs, particularly for the battery. Be sure to compare insurance plans and consider getting an EV-specific policy that covers battery replacement and charging infrastructure damage.

On-Road Assistance:

Many EV manufacturers like Tata Motors offer special roadside assistance programs for EV owners. This service can be invaluable if you face battery issues or run out of charge on the road, especially since EV charging infrastructure is still developing in some areas.

Charging Infrastructure in Your Area:

While EV charging stations are popping up across major cities, the situation is still evolving. It’s crucial to check the availability of charging stations near your home, workplace, or during your regular commute. In areas where charging infrastructure is still sparse, you might want to prioritize an EV with a longer range or consider installing a home charging setup.

Government Policies and Incentives:

Besides national schemes like FAME II, many Indian states offer their incentives for EV buyers, such as road tax exemptions, registration fee waivers, or subsidies. States like Maharashtra and Delhi have rolled out attractive EV policies, so it’s important to explore what benefits are available to you based on your location before finalizing your purchase.

Compatibility with Daily Driving Needs:

If your daily drive involves mostly city commuting, a compact EV like the Tata Tiago EV or Citroën ëC3 could be ideal. However, if you frequently embark on long highway trips, an EV with a higher range and fast-charging capabilities, such as the Tata Nexon EV Max, might be more suitable. Understanding your driving habits can help you pick a vehicle that matches your lifestyle without any range anxiety.

Financing Options for EV Buyers in India

Given the slightly higher upfront cost of EVs, it’s essential to explore financing options that make buying an EV more affordable.

To make electric vehicle (EV) ownership more accessible, various financing options are available in India. Beyond traditional bank loans, several creative and flexible methods can ease the financial burden of purchasing an EV.

Here’s what you need to know:

1. Bank Loans

Several leading banks in India, such as State Bank of India (SBI) and ICICI Bank, offer special loan schemes for electric vehicles. These loans usually have lower interest rates and longer repayment terms compared to regular car loans. Some banks may even offer a “green loan” with favorable terms to promote environmentally friendly purchases.

• Interest Rates: EV loans tend to have interest rates starting as low as 7.5%, depending on the bank and your credit score. Thus, making them one of the most affordable options.
• Loan Tenure: You can get repayment terms stretching up to 7 years, allowing for smaller monthly installments.

2. Leasing Options

Leasing has become increasingly popular in urban India. This is with companies offering flexible lease plans that give customers the option to drive an EV without a long-term commitment. This typically includes maintenance costs, insurance, and even road tax, so you only pay a fixed monthly fee.

• Benefits of Leasing: It allows you to upgrade to the latest model once your lease term ends. This is especially advantageous as EV technology evolves rapidly. Companies like Orix and Zoomcar provide leasing plans for electric vehicles, especially in metro cities like Delhi, Mumbai, and Bengaluru.
• Ideal for Short-Term Use: Leasing is great for those who want the benefits of driving an EV without the higher initial purchase cost or are unsure about long-term ownership.

3. Government Subsidies and Incentives

Under the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, the Indian government provides financial subsidies for both private buyers and fleet operators.

• Subsidies on EV Purchases: Buyers can get subsidies up to ₹1.5 lakh, significantly reducing the upfront cost of the vehicle. For instance, the Tata Nexon EV benefits from these subsidies, making it more affordable for consumers.
• State-Specific Incentives: Some states like Delhi, Maharashtra, and Gujarat offer additional benefits, such as road tax exemption, registration fee waivers, and discounts on the purchase of EVs.

4. Non-Banking Financial Companies (NBFCs)

Apart from traditional banks, Non-Banking Financial Companies (NBFCs) like Mahindra Finance, Bajaj Finserv, and Tata Capital offer EV-specific financing plans. NBFCs often provide quicker processing times and more flexible loan terms compared to conventional banks.

• Flexible Loan Structures: NBFCs may provide custom-tailored loans to fit your budget, including EMI options that suit both salaried and self-employed individuals. In some cases, they offer lower down payments to make EVs more accessible.
• Specialized EV Financing Products: Tata Capital, for example, offers loans specifically designed for electric vehicles with relaxed credit score requirements, making it easier for a wider range of consumers to qualify.

5. Electric Vehicle Subscription Models

Subscription models are emerging as another financing option in India, especially for those who prefer flexibility over ownership. Companies like Revv and Zoomcar now offer EV subscription plans where you can “rent” an electric vehicle for months or years without actually purchasing it.

• Pay-As-You-Go: With EV subscriptions, you don’t have to worry about depreciation or long-term ownership costs. After the subscription period ends, you can either extend the contract, swap to another model, or end the service.
• All-Inclusive Plans: These subscriptions typically cover insurance, maintenance, and charging, simplifying the ownership experience. This model is ideal for customers who want to try out EVs before making a full commitment.

6. Green Loans and Special Schemes

Several banks and financial institutions now offer green loans to encourage the purchase of environmentally friendly vehicles, including EVs. For example, HDFC Bank has introduced loans specifically tailored for electric vehicles under their “Green & Sustainable” initiative.

• Lower Interest Rates: These loans often come with lower interest rates compared to regular auto loans as they are designed to promote sustainable practices.
• Tax Benefits: Some green loan schemes offer tax benefits under Section 80EEB of the Income Tax Act, allowing you to claim deductions of up to ₹1.5 lakh on the interest paid on loans taken for EVs.

7. Down Payment Assistance Programs

Certain manufacturers, like Tata Motors and Mahindra, offer down payment assistance programs where they provide a discount or reduce the down payment needed for EV buying. This initiative is often paired with government subsidies, further easing the financial burden on buyers.

• Manufacturer Discounts: For instance, Tata Motors occasionally runs special promotions where they offer discounts or cashback on specific EV models, making the down payment more affordable for buyers.

8. Pay-Per-Kilometer Financing

An innovative financing solution is the pay-per-kilometer plan offered by some EV manufacturers and leasing companies. Under this scheme, you only pay for the distance you drive, reducing costs if your driving needs are minimal.

• Dynamic Payments: Instead of a fixed EMI, your monthly payments vary based on usage. This is ideal for individuals who use their EVs for short city commutes and don’t want to overpay for idle time.

By exploring these various financing options, you can find a solution that best suits your budget and driving needs.

With the government’s push toward electric mobility, banks, and other institutions are offering more flexible and affordable ways to own an EV in India.

Conclusion: Making the Switch

Effective EV buying in India can feel like a big decision, but with more models, improved infrastructure, and growing financial incentives, the process is getting simpler every day.

Whether you’re interested in the Tata Nexon EV for its range and features or the Citroën Basalt for its compact design, there are options for every type of buyer.

Related: Citroen Basalt vs Tata Curvv EV: All Features Compared

By considering factors like range, charging infrastructure, maintenance, and government support, you can make an informed decision that suits your needs.

And remember, the transition to electric vehicles is not just about saving money—it’s about contributing to a cleaner, greener future for India.