For a petrol SUV owner who has driven the same vehicle for five years, rising fuel expenses, upcoming servicing bills and increasing mileage may prompt a closer look at electric alternatives. Although an electric SUV may cost more initially than its petrol equivalent, lower energy costs can help offset the difference over time.
The key question is how long those savings take to recover the additional purchase price. The answer depends on annual mileage, charging costs, purchase price, taxes and the period for which the vehicle is retained.
A driver covering 20,000 kilometres annually and charging mainly at home could recover the additional cost of an EV within a few years. In contrast, someone driving 8,000 kilometres annually, particularly without access to home charging, could take close to a decade. These differences make individual driving patterns central to the ownership calculation.
The first step is to compare the cost of travelling one kilometre in a petrol vehicle with the cost of covering the same distance in an EV. With petrol priced at around INR 102 per litre in Delhi, an SUV delivering 13-14 kilometres per litre incurs fuel expenses of approximately INR 7.3-7.8 per kilometre.
For an EV travelling around 6-7 kilometres per kWh, household electricity tariffs ranging from approximately INR 3/kWh in Delhi to INR 8.98/kWh in Maharashtra translate into a raw energy cost of roughly INR 0.4-1.5 per kilometre, depending on the local tariff and household consumption. However, because EV charging can push household consumption into higher electricity slabs, a more practical estimate for home charging is around INR 0.9-1.3 per kilometre.
This creates a home-charging advantage of approximately INR 6-7 per kilometre in the example. Using INR 6 per kilometre as a conservative estimate, the savings can be calculated against a representative upfront EV premium of INR 4 lakh.
Dividing INR 4,00,000 by INR 6 gives a breakeven distance of approximately 66,700 kilometres. At that point, fuel savings alone would have recovered the initial price difference, with additional kilometres contributing further savings.
For drivers covering 8,000 kilometres annually, reaching this distance would take approximately 8.3 years. At 12,000 kilometres a year, the period falls to around 5.6 years, while 15,000 kilometres annually would bring it down to approximately 4.4 years. Drivers covering 20,000 kilometres a year could reach the same point in about 3.3 years.
The calculation changes when public charging replaces home charging. At rates of INR 15-25 per kWh, an EV travelling 6-7 kilometres per kWh would incur energy costs of approximately INR 2.1-4.2 per kilometre before accounting for charging losses. These costs remain below the estimated INR 7.3-7.8 per kilometre required to run the petrol SUV.
Maintenance expenses can further improve the economics of EV ownership. Petrol and diesel vehicles typically incur around INR 7,000-10,000 annually in scheduled servicing, compared with approximately INR 2,000-4,000 for comparable EVs. This represents potential annual savings of INR 5,000-8,000 before other ownership costs are considered. However, higher insurance premiums and potentially faster tyre wear can offset part of the advantage and should also be included in the calculation.
Road taxes can make a significant difference to the initial price gap. In states offering substantial road-tax exemptions for EVs, the savings can reduce the additional upfront expense before the vehicle leaves the showroom. For a representative vehicle priced at INR 20 lakh, road tax of 8-15% on an internal combustion engine (ICE) vehicle would amount to approximately INR 1.6-3 lakh, although the actual amount varies by state and vehicle.
The overall calculation becomes more favourable as annual mileage increases, charging costs decrease and the ownership period extends. There is no universal mileage threshold at which every petrol vehicle owner should switch to an EV, as the financial outcome depends on individual usage and ownership circumstances.
VinFast is seeking to make the transition easier in India through vehicle specifications, warranty coverage and ownership incentives. Its B-SUV, the VF 6, offers a range of up to 468 km under the MIDC cycle and can charge from 10% to 70% in approximately 25 minutes. The C-SUV VF 7 offers additional performance and space, with a range of up to 438 km under the MIDC cycle and charging from 10% to 70% in about 24 minutes.
The VF 6 comes with a vehicle warranty of seven years or 160,000 km and a battery warranty of 10 years or 200,000 km. The VF 7 offers a 10-year or 200,000 km warranty for both the vehicle and battery.
The company is also offering benefits aimed at customers moving from conventional petrol or diesel vehicles to electric mobility. Its current programme includes free maintenance for three years or 36,000 km, free charging at V-Green charging stations until March 31, 2029, and cash support for customers who sell an existing ICE vehicle and purchase a VinFast EV.
These benefits can reduce the effective cost of switching to an electric vehicle and potentially bring the breakeven point forward. For prospective buyers comparing petrol SUVs with electric alternatives, the decision ultimately depends on expected annual mileage, the cost of petrol or electricity, access to home charging and the duration of ownership.
VinFast, listed on NASDAQ under the ticker VFS, is a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates. It is a pure-play electric vehicle manufacturer with the mission of making EVs accessible to everyone. Its product lineup includes electric SUVs, e-scooters and e-buses.
The company is pursuing its next phase of growth through the rapid expansion of its global distribution and dealership network and increased manufacturing capacity, focusing on key markets across North America, Europe, the Middle East and Asia.
Further information is available at https://vinfastauto.in/en.
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