Bhavish Aggarwal, founder of Ola Electric, has said that electric vehicles (EVs) are ‘90% cheaper’ than petrol vehicles. This comment has triggered widespread debate on social media. Users are questioning whether the comparison reflects real ownership costs.
Aggarwal pointed out that the technical aspects of running costs were the main point of discussion. According to him, the figures suggest that petrol scooters cost about Rs. 2 per km, and electric scooters Rs. 0.2 per km, thus a 90% saving in favour of the latter.
The assertion started to become popular since fuel prices are still unstable and the transition to EVs is getting faster. However, detractors still maintain that the comparison is misleading and only shows a part of the reality.
The 90% figure is limited to energy costs. On this metric alone, EVs are cheaper to operate. Electricity costs per kilometre remain significantly lower than petrol, especially for daily urban commuting. This advantage holds even after accounting for home charging tariffs in most Indian cities.
Netizens and auto analysts point out that the total cost of ownership extends far beyond running costs. Electric two-wheelers typically carry a higher upfront price than comparable petrol scooters, even after subsidies. This initial premium delays the point at which fuel savings translate into net financial gains.
Battery life is another concern. Lithium-ion batteries degrade over time, and replacement costs can be substantial. Nonetheless, these expenditures have not been factored into Aggarwal's comparison, which indicates a lack of consideration for long-term ownership economics.
Resale value adds complexity to the computation. The depreciation of petrol scooters has become increasingly predictable, as they already have an established resale market. The reselling of electric vehicles, however, remains very much uncertain, mainly due to concerns about battery life and replacement costs.
It is acknowledged that the running-cost calculations are correct to a large extent when considered on their own. Nonetheless, the opposing side points out that the promotion of EVs as ‘90% cheaper’ without mentioning the limited range of the comparison is misleading to customers.
EVs do offer clear savings on daily operating expenses and align with long-term decarbonisation goals. But whether they are cheaper overall depends on usage patterns, purchase price, battery durability, financing terms, and resale value. The real cost equation is more complex than a single per-kilometre comparison suggests.