As India accelerates its shift toward cleaner and more affordable mobility, a comprehensive comparison of electric, petrol, diesel, and CNG vehicles has become essential. Drawing on recent government-led analyses and independent studies, this report sheds light on costs, environmental impacts, and long-term value.
Ownership of an electric vehicle typically requires higher upfront spending. Entry-level EVs begin around ₹8 lakh for hatchbacks, rising to ₹15 lakh or more for SUVs. By contrast, petrol vehicles remain the lowest-cost option upfront, with CNG models adding ₹90,000 to ₹1.3 lakh over petrol, and diesel variants generally ₹1–1.5 lakh more than petrol equivalents(Statista, Price India). Government incentives under FAME‑II and various state subsidies—such as in Delhi, Maharashtra, Tamil Nadu, and Uttar Pradesh—help narrow the cost gap. EV buyers benefit from lower GST (5% versus 28%), waived road taxes, and registration exemptions(Citizencareev).
In terms of running cost, the advantage swings heavily toward electric vehicles. Home charging typically costs ₹1 to ₹1.5 per kilometre, while CNG averages ₹2 to ₹3 per kilometre. Diesel remains lower than petrol—around ₹5 to ₹6 per kilometre—whereas petrol cars incur the highest running cost, approximately ₹7 to ₹9 per kilometre, and potentially more depending on conditions(Caron Phone, Price India).
A closer look at five‑year ownership costs for a mid‑range model reveals the differences starkly. Assuming typical usage of 150,000 km, petrol vehicles may incur fuel costs of ₹2.6 lakh, diesel ₹1.87 lakh, CNG ₹1.76 lakh, and EVs just about ₹39,000. Over a 150,000 km span, total fuel expense is lowest for EVs by a wide margin(Carbike360). Maintenance costs also favor EVs—about ₹30,000 over five years versus ₹40,000 for petrol and ₹45,000 for diesel or CNG vehicles(Carbike360, agppratham.com).
When purchase price, fuel, and maintenance are combined, total five‑year ownership cost falls to approximately ₹13.24 lakh for petrol, ₹15.01 lakh for diesel, ₹13.15 lakh for CNG, and ₹14.69 lakh for EVs. Although EVs are slightly more expensive overall in that example, savings in fuel and maintenance begin to outweigh the higher initial cost depending on mileage and charging access(Carbike360).
More recent analysis from the Council on Energy, Environment and Water (CEEW), updated in June 2025, underscores that electric two‑wheelers are already the most economical transport option—₹1.48 per kilometre versus ₹2.46 for petrol two‑wheelers(CEEW). The broader CEEW report ranks EVs cheapest across most four‑wheeler categories in many Indian states. Where electricity tariffs are high or CNG infrastructure is robust, CNG can be equally competitive in cars or taxis. Diesel remains cost‑effective primarily for high‑mileage SUVs and commercial vehicles today, with EVs expected to become fully competitive broadly by the early 2030s(CEEW).
In environmental terms, electric vehicles have zero tailpipe emissions, sharply reducing urban air pollution, soot, nitrogen oxides, and volatile organic compounds. However, lifecycle greenhouse gas emissions depend on India’s power grid, which remains heavily coal‑based. A lifecycle study finds that an EV in India emits between 0.32 and 0.37 kg CO₂‑equivalent per kilometre, compared to 0.24 to 0.27 kg CO₂e/km for conventional petrol or diesel vehicles. The higher EV emissions stem from battery manufacturing and coal‑based power generation. As renewable energy penetration increases and battery production improves, those emissions are projected to decline substantially(researchgate.net).
User experiences mirror the economic argument. EV owners report reductions in monthly fuel (electricity) bills of up to ₹10,000–12,000 compared to petrol vehicles. One reported charging costs fell to ₹1,500 monthly versus ₹5,000–6,000 by petrol. Many attribute improved driving experience, quieter operation, and lower vibration as added benefits, though range anxiety and charging infrastructure remain concerns(reddit.com, reddit.com).
Summing up, for urban commuters and those covering high daily mileage, EVs offer substantial savings in running costs and less environmental harm—especially as charging becomes more renewable. CNG vehicles offer a pragmatic, lower-cost alternative in city conditions, with cleaner emissions than petrol or diesel. Diesel remains relevant for heavy‑duty and long‑distance use, while petrol retains flexibility and widespread infrastructure advantages.
As India continues expanding charging networks, and battery prices decline, the total cost and emissions benefit of EVs are set to strengthen further. Consumer choice in 2025 ultimately hinges on usage patterns, access to home charging or CNG stations, budget, and environmental priorities.