Video summary

Fuel Prices are RISING everyday. Buy an EV instead?

Main summary

Key takeaways

Finance

Finance-focused summary (ICE vs EV ownership cost over 5 years)

The video compares the total cost of ownership (TCO) of a petrol ICE car versus a comparable EV in India, using an Excel model. It focuses on:

  • Fuel / electricity costs
  • Maintenance
  • Insurance
  • Interest on loans
  • Resale value

Key assumptions & timeline (explicit)

  • Ownership horizon: 5 years
  • Driving volume: 30 km/day ≈ 900 km/month
    • Sensitivity test: 1,500 km/month
  • Financing: loan rate = 9%
  • Down payment: 20%
  • Example location for taxes: Delhi
  • Petrol price used: ₹100 per liter
  • Electricity price used (Delhi): ₹7 per unit
  • Petrol mileage assumption (reduced from claimed): 17 kmpl
    • The video cautions not to trust claimed mileage.
  • Maintenance horizon notes:
    • Insurance: includes full 5-year running insurance (only 1-year quoted at the start)
    • Tires: replaced by approximately year 5

Methodology / step-by-step framework shown (Excel-based)

1) Compute on-road price (ICE)

  • Start with ex-showroom price
  • Add road tax (example uses 7% in Delhi)
  • Add insurance (example: “zero dep” version)
  • Add misc charges, such as:
    • MCD charge
    • Hypothecation
    • Number plate changes

2) Compute running costs over 5 years (ICE)

  • Fuel cost: [ (\text{monthly km} \div \text{mileage}) \times \text{fuel price} \times 12 \times 5 ]

  • Maintenance / service: user-provided annual service costs

    • Model explicitly says to change for your car
  • Tires replacement: around year 5
  • Insurance: add remaining years beyond the first quoted year

3) Compute running costs over 5 years (EV)

  • EV tax incentives assumption:
    • “Tax for EV is zero” in Delhi, with a warning that incentives vary by state and may change
  • Electricity cost: based on the per-unit rate
  • EV maintenance: assumed 20–30% cheaper than ICE
    • Model uses ₹4,000/year
  • Tires:
    • Replace around ~5 years
    • EV tire cost assumed ₹20,000 (slightly higher)

4) Add missing finance component

  • Include interest cost (not just EMI)

5) Compute resale value at year 5

  • ICE resale: about 50%
  • EV resale: about 30–40%
    • Due to battery value uncertainty and shorter remaining battery life for the next buyer

Key numbers mentioned (prices, costs, ranges, percentages)

ICE (petrol car example)

  • Ex-showroom price: ₹6.31 lakhs
  • Road tax (Delhi example): 7% → ₹44,190
  • Insurance (1 year, “zero dep”): ₹15,000
  • Misc charges: ₹10,000
  • On-road price (after additions): about ₹7.0 lakhs
  • Total cost impact (after adding running costs):
    • Adds roughly ₹4.2 lakhs on top of on-road
    • Total cost of driving vehicle: ~₹11.1 lakhs
  • Fuel economy assumption used: 17 kmpl (not claimed number)
  • Tire replacement cost: ₹18,000
  • Interest cost on loan: ₹1.37 lakhs

EV (electric car example)

  • Ex-showroom price: ₹7.99 lakhs (higher than petrol)
  • Tax/incentives assumption (Delhi): tax = zero
    • Warning: incentives/subsidies may vary and change
  • Insurance cost (example): ₹29,405
    • Nearly doubles vs ICE in their model
    • Rationale: insurance covers the battery (including accidental and potentially non-accidental incidents)
  • Maintenance assumption: ₹4,000/year
    • Justification: 20–30% cheaper due to fewer moving parts
  • Tire replacement cost: ₹20,000
    • EV is heavier/battery-linked
  • Battery range caution (real-world vs brochure):
    • Certified full range: 223 km
    • Estimated real-world range: 168 km
    • Noted gap: ~60 km
  • Electricity cost assumption: ₹7 per unit
  • Interest cost on loan: ₹1.65 lakhs
  • Resale value assumption at year 5:
    • EV resale: 30–40% (battery-driven value + uncertainty)

Result of their base-case comparison

  • In their starting Excel assumptions, the EV “wins” by ~₹40,000.
  • The creator notes this doesn’t necessarily hold universally and demonstrates sensitivity.

Sensitivity results / explicit recommendations & caveats

  • Higher monthly driving (1,500 km/month):
    • ICE will never beat the EV (EV becomes more favorable)
  • Removing EV subsidy/rebate:
    • ICE can win “pretty well”
  • Certified vs real-world range:
    • Strong warning to check the gap between certified and actual range (advertising may be optimistic)
  • Insurance caution:
    • EV insurance may be much higher because it covers the battery
  • General financial caution:
    • “Don’t overextend yourself” / avoid making the car a financial burden

Disclosures / disclaimers

  • No explicit “financial advice / not financial advice” disclaimer is shown in the provided subtitles.
  • The analysis is framed as an Excel-based affordability comparison and includes warnings to adjust assumptions, such as:
    • State taxes/incentives
    • Mileage realism
    • Car-specific maintenance/service costs

Tickers / assets / sectors mentioned

  • None
    • No tickers, ETFs, bonds, commodities, or crypto referenced.

Presenters / sources (as named in subtitles)

  • Presenter / channel/creator name: “01”
    • Referred to repeatedly, including: “On every 01 makes a video, we give you an Excel sheet.”
  • No other specific external sources are named.

Original video