Electric Bikes vs. Petrol Bikes: Which One Saves You More Money in the Long Run?

When it comes to choosing between an electric bike and a petrol bike, many buyers focus only on the upfront cost. However, the long-term savings with an electric bike make it the more cost-effective option. From fuel and maintenance savings to government incentives, electric bikes help owners save a significant amount over the years. In this blog, we will compare the total cost of ownership between electric and petrol bikes to see which one offers better savings.


Initial Purchase Cost: Is an Electric Bike More Expensive?

Many people assume electric bikes are more expensive than petrol bikes, but government subsidies help bring down the cost significantly.

  • Electric bike price: ₹90,000 - ₹1.5 lakh
  • Petrol bike price: ₹80,000 - ₹1.3 lakh

Under the FAME II subsidy, electric bike buyers get a discount of up to ₹15,000 per kWh, reducing the cost by ₹20,000 - ₹30,000. Additionally, some states offer extra subsidies, making electric bikes even more affordable.

Fuel vs. Charging Costs: Where You Save the Most

The biggest financial advantage of electric bikes is the elimination of petrol expenses. Here’s a breakdown of fuel and charging costs over five years:

Petrol Bike Fuel Costs:

  • Average mileage: 45 km per liter
  • Fuel price: ₹100 per liter
  • Monthly travel: 1,000 km
  • Monthly fuel cost: ₹2,200
  • Annual fuel cost: ₹26,400
  • 5-year fuel cost: ₹1.32 lakh

Electric Bike Charging Costs:

  • Battery capacity: 3 kWh
  • Per charge range: 100 km
  • Electricity rate: ₹8 per kWh
  • Monthly charging cost: ₹240
  • Annual charging cost: ₹2,880
  • 5-year charging cost: ₹14,400

By using an electric bike, you can save ₹1.17 lakh in fuel costs alone over five years.

Maintenance Costs: A Hidden Benefit of Electric Bikes

Electric bikes require much less maintenance compared to petrol bikes. With fewer moving parts, there’s no need for oil changes, engine tuning, or spark plug replacements.

Petrol Bike Maintenance Costs:

  • Regular servicing: ₹2,500 every 4 months
  • Annual maintenance cost: ₹7,500
  • 5-year maintenance cost: ₹37,500

Electric Bike Maintenance Costs:

  • No oil changes, fewer parts to service
  • Annual maintenance cost: ₹1,500
  • 5-year maintenance cost: ₹7,500

Switching to an electric bike results in an additional ₹30,000 in maintenance savings.

Battery Replacement: The Only Major Cost

Electric bike batteries last around 4-5 years, after which they need replacement. A new battery costs between ₹30,000 - ₹50,000. However, considering the savings in fuel and maintenance, the overall cost of ownership remains much lower than a petrol bike.

Tax Benefits and Government Incentives

To promote electric mobility, the Indian government provides several incentives:

  • FAME II subsidy: Discounts up to ₹20,000 - ₹30,000 on new electric bikes.
  • Lower GST: Only 5% GST on electric bikes compared to 28% for petrol bikes.
  • State subsidies: Additional discounts in some states reduce the overall cost.
  • No road tax in many states, saving thousands of rupees over time.

5-Year Cost Comparison: Electric Bike vs. Petrol Bike

Cost FactorPetrol Bike (₹)Electric Bike (₹)Savings with Electric Bike (₹)
Fuel/Charging Cost1,32,00014,4001,17,600
Maintenance Cost37,5007,50030,000
Battery Replacement040,000(-40,000)
Government Incentives0(-20,000)20,000
Total Cost Over 5 Years₹1,69,500₹41,900₹1,27,600 saved

Conclusion

When looking at the long-term cost of ownership, electric bikes clearly offer better financial benefits. Even after accounting for battery replacement, electric bike owners save over ₹1.27 lakh in five years. With rising petrol prices and increasing government support for EVs, electric bikes are the smarter, more economical choice for Indian riders.

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