How do electric vehicles help you save money?

16 February, 2023

Owning a car is a dream for many. Thanks to the easy availability of low-cost loans, most of us can convert this dream into reality. However, owning a car can still be heavy on the pocket. A vehicle requires regular maintenance, repairs in case of damage or breakdowns, and above all – fuel.

Given the fuel prices that the world has seen in recent times, there has been a growing interest from consumers to opt for Electric Vehicles (EVs). EVs not only eliminate recurring fuel expenses but also offer better features, smoother rides, noiseless driving, and an opportunity to contribute towards a greener planet.

Here are some ways EVs can help lower expenses and save money.

1. Lower maintenance costs

Electric cars have a simpler structure than cars that run on petrol and diesel, so the chances of a breakdown are low. They do not require fluid changes as they do not have exhausts, transmissions, radiators, etc., typically found in ICE (internal combustion engine) vehicles. Furthermore, EVs use regenerative braking, so the brake pads and rotors last longer. If you take care of your EV and drive responsibly, you will be able to use your car for a long time with no or minimal visits to the garage. This is not only pocket-friendly but also helps save time.

2. Zero fuel costs

The most significant benefit of owning an EV right now is that you will not have to use petrol or diesel to power it. As of January 1, 2023, the cost of petrol in New Delhi was an astounding Rs. 96.72 per litre, and diesel was ₹ 89.62 per litre. These prices are subjected to further hikes due to inflation. In comparison, the cost of charging an EV is relatively low. When you buy an EV, you can install a charger at your home or office, which ensures ease and convenience in the long run. In addition, there are public EV charging stations, with more coming up across India, for better flexibility.

3. Improved resale value

EVs command a good resale value if they have been maintained well. You can sell your EV and upgrade to a new one a few years down the line without any hassles. This can be a good investment and allows you a way out in times of financial emergencies as well.

4. Better technology and luxury at excellent costs

EVs are the future of personal transport. With newer innovations being unveiled by the day, the scope for these vehicles is immense. Car manufacturers, whether old or new, affordable or luxurious, are getting into the EV game and ramping up their products. If you are in the market for a luxury car, an EV can offer the same (if not better) benefits and features as a petrol car – and at affordable costs.

5. Subsidies and loan deals

The Government of India has proposed several tax advantages for EV buyers. Under Section 80EEB of the Income Tax Act, 1961, you can claim a tax deduction of up to ₹ 1.5 lakhs on the interest paid for a car loan used for purchasing electric vehicles. The section applies to individual taxpayers who purchase an electric vehicle for personal or professional use. You can claim the tax deduction for the entire tenure of the loan. The section also offers tax deductions on loans taken to purchase two- and four-wheelers.

The Goods and Services Tax (GST) for electric vehicles has also been reduced from 12% to 5%. EV owners are also exempt from paying green tax, which is charged on older petrol and diesel vehicles. Additionally, several state governments have introduced cost-saving provisions, such as exempting EVs from road tax and registration charges at the time of issue/renewal.

Banks are also encouraging the move to e-vehicles by offering great loan deals. Take the new HDFC Bank EV Loan product, which offers loans of up to ₹ 10 crores and 100% on-road financing for electric vehicles. This ZipDrive-Instant Auto Loan has flexible repayment tenures and disbursals to pre-approved customers in less than ten seconds.

EVs can undoubtedly lower transportation and operational costs. However, they offer much more. They help you save tax and offer a luxurious appeal that may not be affordable otherwise, while letting you do your bit for the environment. As EV charging stations and infrastructure continue to improve, EV owners are set to enjoy more convenience in the near future.

Given the constant advancements in EV technology, electric cars and bikes will only continue to improve in terms of range and quality. No doubt, this can be an excellent time to purchase an EV. With easy financing options such as HDFC Bank ZipDrive - Instant Loan, you can buy an EV of your choice in no time and enjoy your car to its full potential.

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​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit at sole discretion of HDFC Bank Ltd. Other charges and taxes as applicable. The offer is unconditionally cancelable without prior notice. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.