Total Cost of Ownership of an Electric Vehicle: Why EVs Like TVS iQube Trump Over ICE Vehicles

With the rising awareness of climate change, pollution, and increasing fuel prices, electric vehicles (EVs) have gained significant attention. One of the most compelling reasons to consider an EV today is the Total Cost of Ownership (TCO), a factor that often proves EVs to be more cost-effective than their Internal Combustion Engine (ICE) counterparts. While the upfront cost of an electric vehicle may seem higher, a closer look at the TCO reveals why switching to an EV, like the popular TVS iQube electric scooter, is a smarter financial choice in the long run.

In this blog, we'll break down the various components of TCO, explain why EVs are more economical, and compare the TVS iQube electric scooter to its ICE equivalents to show the real financial benefits of owning an electric vehicle.

What Is Total Cost of Ownership (TCO)?

The Total Cost of Ownership (TCO) is the overall cost of owning a vehicle over a certain period, typically 5-7 years. It includes not only the purchase price but also expenses like fuel, maintenance, insurance, taxes, and other running costs.

When comparing EVs to ICE vehicles, several factors contribute to the TCO:

1. Purchase Price (Upfront Cost)

2. Fuel/Electricity Costs

3. Maintenance Costs

4. Government Incentives and Rebates

5. Resale Value

6. Insurance and Registration Fees

By analyzing these factors, we can see how EVs like the TVS iQube provide significant cost savings over time compared to traditional ICE vehicles.

1. Upfront Cost: The Initial Investment

When it comes to purchase price, EVs tend to have a higher upfront cost compared to ICE vehicles. This is primarily due to the cost of the lithium-ion battery pack, which is one of the most expensive components in an electric vehicle.

For instance:

• The TVS iQube electric scooter is priced around ₹1.61 lakh (on-road in certain states with subsidies), depending on the location and variant.

• A comparable ICE scooter, such as the Honda Activa 125, costs around ₹90,000 (on-road).

At first glance, the TVS iQube appears to be more expensive, but once you consider the long-term savings on fuel, maintenance, and other factors, the higher upfront cost quickly justifies itself.

2. Fuel Costs vs. Charging Costs

One of the biggest advantages of owning an EV is the dramatic reduction in fuel costs. Let's break down the cost comparison between a traditional ICE scooter and an electric scooter like the TVS iQube.

• TVS iQube Charging Costs: The iQube comes with a battery capacity of 3.04 kWh, and it provides a range of around 100 km on a full charge. If electricity costs around ₹6 per kWh, a full charge will cost around ₹18. This means your cost per km is just ₹0.18.

• Honda Activa 125 Fuel Costs: Assuming the Activa has a fuel efficiency of around 45 km per liter and petrol costs ₹100 per liter, the cost per km would be ₹2.22.

Let's compare fuel costs over a year, assuming a daily commute of 30 km:

• TVS iQube: 30 km/day × 365 days = 10,950 km/year × ₹0.18/km = ₹1,971/year

• Honda Activa 125: 10,950 km/year × ₹2.22/km = ₹24,309/year

As you can see, the annual fuel savings with the TVS iQube can be around ₹22,338. Over five years, that's a savings of more than ₹1 lakh on fuel alone!

3. Maintenance Costs: EVs Require Less Maintenance

Another significant factor in TCO is maintenance costs. Electric vehicles, including the TVS iQube, have far fewer moving parts compared to ICE vehicles. EVs do not have components like oil filters, spark plugs, or fuel injectors that need regular servicing or replacement.

Maintenance Differences Between EVs and ICE Vehicles

• TVS iQube: Being an electric scooter, it doesn’t require engine oil changes, clutch adjustments, or air filter replacements. Routine checks mainly focus on the health of the battery, tires, and braking system. The brake pads, tires, and suspension are subject to wear and tear, but that’s about it.

• Honda Activa 125: A typical ICE scooter requires regular oil changes, air filter replacements, clutch adjustments, and occasional engine tuning, all of which add to the maintenance costs. Additionally, ICE vehicles are more prone to mechanical breakdowns due to the complexity of internal combustion engines.

Annual Maintenance Cost Comparison:

• TVS iQube: Approx. ₹2,000-3,000/year for regular maintenance.

• Honda Activa 125: Approx. ₹6,000-8,000/year, considering oil changes, air filters, and other engine maintenance.

Over five years, maintenance savings with the TVS iQube can be around ₹15,000-₹20,000 compared to an ICE scooter.

4. Government Incentives and Rebates

The Indian government offers several incentives and subsidies under the FAME II scheme (Faster Adoption and Manufacturing of Electric Vehicles in India) to encourage the adoption of electric vehicles. These incentives can significantly reduce the purchase price of an EV.

For example, the TVS iQube qualifies for a subsidy of approximately ₹51,000 under FAME II in some states, bringing down its effective price. Additionally, some state governments provide further incentives, such as:

• Exemption from road tax and registration fees

• Subsidies on the purchase price

In contrast, ICE vehicles are not eligible for such financial incentives. These government subsidies further tilt the balance in favor of EVs when considering TCO.

5. Resale Value: Growing Demand for Used EVs

While the resale value of electric vehicles is still evolving, as EVs become more popular, their resale market is growing. Although ICE scooters like the Honda Activa have traditionally had higher resale values, the trend is shifting as more people recognize the long-term savings and environmental benefits of EVs.

With the increasing demand for second-hand EVs and improvements in battery technology, electric scooters like the TVS iQube are likely to retain better resale value in the coming years.

6. Registration Fees

Electric vehicles often enjoy lower insurance premiums due to their lower maintenance needs and fewer accident-related breakdowns. Moreover, in some Indian states, EV owners benefit from exemptions on registration fees and road tax, further lowering the TCO.

For example:

• The TVS iQube may benefit from reduced or waived road tax and lower insurance premiums in certain states.

• The Honda Activa 125 doesn’t enjoy these exemptions and typically incurs higher insurance costs, especially as the engine size and power affect the premium.

Conclusion: Why EVs Like TVS iQube Are More Cost-Effective

When you consider the Total Cost of Ownership (TCO), electric vehicles like the TVS iQube emerge as the more cost-effective choice compared to traditional ICE scooters like the Honda Activa 125. Here’s a summary of the key savings:

• Fuel Savings: EVs offer significantly lower fuel costs. In the case of TVS iQube vs. Honda Activa, the TVS iQube can save you over ₹1 lakh on fuel over five years.

• Maintenance Savings: EVs require less maintenance, which could save you ₹15,000-₹20,000 over the same period.

• Incentives: Government subsidies and incentives for EVs further reduce the upfront cost and annual expenses.

• Environmental Benefits: On top of financial savings, EVs contribute to cleaner air and reduced carbon footprints, making them the eco-friendly choice.

While the upfront cost of an EV might seem higher, the long-term financial benefits far outweigh the initial investment. As electric vehicle infrastructure grows in India, and more affordable EV models hit the market, the future of mobility is undoubtedly electric. So, if you’re considering buying a scooter, the TVS iQube makes a strong case for itself in terms of both savings and sustainability.