EV or petrol: calculate the cost for your own driving

An EV's electricity bill can be much lower than a petrol car's fuel bill. That does not tell you the whole cost of changing cars. Purchase price, borrowing, insurance, maintenance and resale can outweigh a saving calculated at the charging socket.

For a useful comparison in Nepal, start with two cars that could both do your job. Give them the same annual distance and ownership period. Then show each assumption so that someone who drives less, borrows more or relies on public charging can change it.

Calculate the energy cost first

The following example uses invented budgeting inputs. It is not a current petrol-price quotation, an NEA tariff or a road test.

The EV needs 1,920 kWh from its battery across the year. With the stated charging loss, the meter supplies about 2,133 kWh. That costs roughly Rs 25,600.

The petrol car needs about 857 litres, costing roughly Rs 1,37,143. The energy difference is about Rs 1,11,543 per year, or Rs 5.58 lakh over five years if all inputs remain unchanged.

That figure is an energy saving. Total ownership saving is a wider number. Keep the two labels separate when comparing a dealer's illustration with your household budget.

Public charging changes the calculation

If the EV electricity in the same example costs Rs 25 per kWh instead, the simplified annual energy cost becomes about Rs 53,333. The five-year gap against petrol falls to about Rs 4.19 lakh.

In practice, a mix of AC and DC sessions needs the relevant delivered-energy and billing measurements, because losses are not identical everywhere. Some operators may also charge for time or parking. Use actual receipts once you own the car.

NEA's tariff information distinguishes consumer categories. A household's incremental electricity cost can differ from the price sold at a public station. A cost calculator should also check the connection before it assumes domestic off-peak discounts.

How long to recover a higher purchase price?

Suppose the EV costs Rs 3 lakh more, including the installation it needs, and in this example it saves about Rs 1.12 lakh a year in energy. A simple energy-only payback is about 2.7 years. If the premium is Rs 8 lakh, it becomes about 7.2 years.

Interest on the extra borrowing pushes the payback out further. Different maintenance and resale outcomes can shorten or lengthen it. A payback calculation also ignores the timing of money unless it explicitly includes discounting.

For a household driving half as far, the fuel saving is roughly half as large under unchanged consumption assumptions. That household may still prefer the EV for other reasons, but it should not borrow against the savings of a high-mileage taxi.

Include the bills people forget

Obtain insurance quotes for the actual insured values and cover. Put annual vehicle tax and renewal costs under the province where each car is registered. Compare the service schedules rather than assigning every EV zero maintenance.

EVs can require tyres, brake servicing, cabin filters, coolant inspections and other model-specific work. MG's Nepal service guidance directs owners to the service and warranty booklet. A maintenance-free claim ignores those costs.

Borrowing deserves its own line. Nabil's auto-loan terms show why loan fees and financing conditions need attention as well as interest. Use a written offer for the actual borrower, including the repayment schedule and prepayment terms.

For total ownership cost, count purchase price minus the eventual sale price, interest and fees, energy, tax, insurance, maintenance and installation. Do not count the whole purchase price and then count loan principal again. The principal is the money that finances that purchase. Counting it twice would add a cost that does not exist.

Use a range for resale

No one can promise the sale price of your car five years from now. Compare several resale scenarios rather than inserting a confident percentage. A new-car price cut, a replacement model or an expensive fault could change the outcome for either powertrain.

Keep an energy log and receipts for the first few months. That turns the calculation into your own evidence. If your EV uses 20 rather than 16 kWh per 100 km on your route, update the model rather than defending the original estimate.

The right conclusion may be that the EV saves substantially for your mileage, or that changing a lightly used, reliable petrol car does not repay the upfront cost quickly. Both are more useful than a headline claiming every Nepal buyer saves the same number of lakhs.