Are electric two wheelers really cheaper than petrol driven vehicles?:Fada says, ‘One size doesn’t fit all’ – here’s how to find out what is best for you

Electric Two Wheelers (E2Ws) are becoming more and more common in India. But are these really cheaper than the Internal Combustion Engine (ICE) based vehicles we are used to? Let’s break it down. Electric Scooters vs. Petrol Scooters Petrol scooters run on petrol! You fill them up at a gas station. While, electric scooters run on electricity. You charge these clean energy vehicles at home or at a charging station. Claim: E2Ws are much cheaper than traditional 2Ws! Top Speed: Generally, petrol scooters can go a bit faster than electric scooters. But many electric scooters are catching up. Mileage: This is where electric scooters shine. Petrol scooters give a mileage of around 50-60 km per liter. Electric scooters can travel much further on a single charge, making them seem more efficient. Price: Electric scooters often cost more to buy upfront than petrol scooters. However, government subsidies and lower running costs can make them cheaper in the long run. The Real Cost of Riding: Petrol vs. Electricity The biggest difference is in the “fuel.” Petrol prices are always changing and can be high. Electricity is usually cheaper, so “filling up” an electric scooter costs less. Also, electric scooters need less maintenance (like oil changes), which saves you money. According to the Federation of Automobile Dealers Association (Fada), whether E2Ws would prove to be more cheaper for riders than traditional 2Ws, it depends upon the factors like owner’s riding habits, distance travelled on daily basis and the price gap.
If the price of the EV is much higher than the fuel-driven 2Ws, and the rider doesn’t commute long distances daily, then, there are more chances that the 2Ws would turn out to be more economical as compared the green energy vehicle. While, if the price gap isn’t too wide and the owner rides short distances every day then, there are chances that the E2W would prove to be more economical for him. Eg, Honda Activa 110 (standard variant) comes at ex-shpwroom price of ₹75,433 while, the electric version of the company’s flagship model – Activa e comes at a higher cost of ₹1.19 lakh. Honda Active 110 vs Activa e: GST on 2Ws – 5% Moreover, the government also reduced GST on traditional vehicles from 28% to 18%, making those cheaper. While, the indirect tax on EVs remain at 5%. So, the fossil fuel-driven vehicles have become more affordable than before. Govt reduced subsidy on EVs: The Indian government has significantly reduced subsidies on electric two-wheelers. The FAME II scheme’s high incentives ended in March 2024, replaced by the lower-subsidy Electric Mobility Promotion Scheme (EMPS) 2024 and subsequently the PM E-DRIVE scheme (Oct 2024–March 2028), reducing per-vehicle support from up to ₹15,000/kWh to ₹10,000 per vehicle. Problems with EVs in India Some riders of popular electric vehicle company in India, Ola Electric in the past have had problems with their Ola scooters, like sudden breakdowns or quality issues. Ola Electric says they are working hard to fix these problems and make their scooters more reliable. They are investing in better quality control and customer service.