Do you also think of replacing your conventional auto rickshaw with an electric three-wheeler? Well, so do several other drivers and fleet owners. Main question: which proves best in the long run? We try answering that here in the form of a detailed cost comparison. Everything is included, from the electric three-wheeler price you pay for purchasing it to the maintenance cost. Let’s find out which road is best to take.
Initial Purchase Cost
First, the initial purchase cost needs to be discussed. The traditional auto rickshaw price is much cheaper in this regard. One can easily get an average auto rickshaw. On the other hand, electric three-wheelers are pretty expensive. The cost savings are considerable, as they seem. But hang on. We shouldn’t conclude from this just as other factors might be coming into play. Let us consider the running costs next.
Fuel Expenses vs. Battery Replacement
The auto rickshaw price is a major expense for drivers. Also, conventional auto-rickshaws run on either petrol, diesel, or CNG. The per-unit prices for these keep changing and generally happen to increase. A typical CNG auto rickshaw can consume more fuel in a day. Compared to them, electric three-wheelers run on cheaper batteries. It takes 1 hour to three hours to fully charge an electric three-wheeler. Besides, the price of batteries does not surge like petrol. As a result, you end up saving a lot in daily operational expenditure through electric three-wheelers.
Maintenance Costs
Maintenance is another big factor. The three-wheeler, or auto rickshaw, is equipped with many mechanical parts that need frequent servicing. This includes regular oil changes, filter replacement, and engine tune-ups.
Electric three-wheelers, on the other hand, have far fewer moving parts. They never require oil changes or an engine tune-up. Plus, the electric motors and batteries require much less frequent servicing. You would probably spend much more on the annual maintenance of an electric three-wheeler. Thus, electric vehicles can save you money on maintenance in the long term.
Battery Replacement
Now, let us consider the cost of replacing the battery. Electric three-wheelers are fitted with lithium-ion batteries, which survive several years. However, at some point in time, you will need to have your battery replaced. On the other hand, traditional auto rickshaws do not have this cost. However, their fuel costs and higher maintenance costs once aggregated over the duration, could come to par with the above. Replacement costs are expected to decline with the improvement in battery technology.
Government incentives are of paramount importance when comparing costs. Many governments provide subsidies and incentives to facilitate the adoption of electric vehicles.
For instance, a subsidy of almost INR 1 lakh is made available to you when you are buying an electric three-wheeler. Besides, in some states, reduced road tax and registration fees are also applicable for e-vehicles.
Conventional auto rickshaws, on the other hand, rarely benefit from such waivers or subsidies. The impact of an electric three-wheeler’s actual cost is lower than its declared price. Incentives of such nature make electric vehicles cheaper and more desirable.
Costs on Environment and Health
While this may not be a high cost, environmental and health effects need to be taken into account. Conventional auto rickshaws produce many poisonous emissions that increase air contamination. The resultant effect is that the drivers and even passengers get health complications due to this. This implies that there will be escalated medical costs.
Three-tyre EVs do not emit anything that can harm the environment or people’s health. Simply put, this reduces environmental and health costs. Clean air translates to sound health with no medical costs. The ripple effect is that a cleaner environment has a host of other benefits.
Resale Value
Resale value is the next factor worth mentioning. Regular auto rickshaws have lower resale values, and within a year or so, the value decreases drastically. However, electric auto rickshaws have a better resale value with rising popularity over the past years. That means that as the volume of demand is high, losing a high price is not possible. You probably have a better return rate on your investment in terms of resale value by selling the electric three-wheelers.
Driving Range
Another factor is the range of operation. Traditional auto rickshaws can drive continuously after quick refuelling, while electric three-wheelers require charging, which in some models takes several hours. Modern electric three-wheelers have a decent range on a full charge, often enough for a full day. In addition, the charging infrastructure is quickly maturing. The charging stations are, at present, more in place, meaning that the idling of the electric three-wheelers is low. Thus, the convenience disparity between electric and conventional vehicles is reducing rapidly.
Insurance Costs
Another area where the costs would differ significantly is insurance. Electric three-wheelers would have a higher premium on account of their relatively high prices. However, some insurers provide discounts on electric vehicles because of their lower maintenance/operation costs. Thus, on average grounds, there may be a few different insurance costs for two different vehicle types.
Conclusion
Although ice-auto rickshaws may have a relatively low initial cost, electric three-wheelers provide huge savings over time through operation. This is because electric three-wheelers have lower operational and maintenance costs, enjoy government incentives, and help in mitigating environmental damages. Electric three-wheelers, therefore, stand as the prudent way forward. With the rise in technology and the establishment of charging infrastructure, the benefits of electric three-wheelers will increase tremendously.
So, if you are thinking about that upgrade, the business case does not stop at the acquisition cost. Take a holistic view of the total cost of ownership and long-term benefit. Perhaps electric three-wheelers can be the gift that keeps giving in the years ahead.
