Comparing Electric Cars and CNG Cars Economics for Fleet Owners

The rising popularity and increasing affordability of electric vehicles is posing a direct threat to CNG vehicles. EVs have seen an increase in usage in recent years due to the extremely low cost of running them. As per studies, the running cost of an electric car is estimated at just Rs 1/km, compared to Rs 4/km for a CNG car and Rs 10/km for a petrol car.

The adoption of CNG requires big compromises like negligible boot space, lower distance per fill, long waiting times for refueling and lower ride quality. CNG’s price advantage in comparison to petrol and diesel has already gone down considerably in the last few years and is likely to erode further.

As EV batteries become cheaper, their replacement cost will further decline. On the contrary, with natural gas costs increasing, CNG prices will go up in future.

CNG vehicle manufacturers are facing a significant level of competition from electric vehicles, which are witnessing acceleration in demand with India’s expanding EV charging infrastructure. While the initial cost of an EV is higher than a CNG or petrol/diesel vehicle, the much lower cost of EV ownership remains a very attractive buying proposition. With the central and state governments offering a host of subsidies along with banks and financing institutions joining in with EV finance schemes, it seems like the CNG sector’s loss will be the EV sector’s gain.

Delhi & IGL Scenario:

Apart from automobile manufacturers, the gradual shift to electric vehicles is also a challenge for gas companies. Indraprastha Gas Limited (IGL) is a joint venture between Delhi Government, GAIL & Bharat Petroleum. Experts claim that the rising popularity of EVs may pose a significant threat to IGL in the long term.

For IGL, the automobile CNG business accounts for nearly 70-75% of total revenue. The business involves distribution of CNG to automobile users through gas stations.

Amid concerns over high air pollution levels, Delhi has been more aggressive in adopting alternatives that have lower emissions. Recently, the Delhi Government proposed that all new vehicles in the cab industry and delivery vehicles be electric. This could be problematic for IGL. Its management highlighted that buses currently account for 20% of CNG volumes, while three-wheelers account for 30%. A large number of cab fleets in the capital are CNG. Hence, analysts are of the view that aggressive EV policies by the Delhi Govt may pose challenges for the company in the coming years.

However, IGL has already started taking action with respect to this problem. The company has already set-up battery swapping stations for electric two and three-wheelers and has tied-up with Tata Power to set up EV charging stations.

Comparative Analysis Between Multifuel Cars:

The Tiago hatchback from Tata Motors is available in 3 versions: electric, internal combustion engine and CNG. So, we are using the Tiago as the subject for our comparative analysis.

Prices:

The Tigo EV is priced between Rs 8.49 lakh and Rs 9.09 lakh, featuring a battery pack of 19.2 kWh. Alternatively, it is priced between Rs 9.99 lakh and Rs 11.79 lakh, equipped with a 24 kWh battery pack. On the other hand, the CNG version of the same car falls within the range of Rs 6.29 lakh to Rs 7.81 lakh, while the petrol version is available in the range of Rs 5.39 lakh to Rs 7.46 lakh.

Running Cost (at a glance):

The Tiago EV comes with battery capacities of 19.2 kWh and 24 kWh, offering ranges of 250 km and 315 km, respectively. The Tiago CNG variant boasts a mileage of 26.5 km/kg with a fuel tank capacity of 10 kg for CNG and 35L for petrol, while the Tiago Petrol model provides a mileage of 20 km/L with a 35L petrol tank. In terms of running costs for an average daily distance of 50 km, the Tiago EV costs around Rs 70.5, the Tiago CNG costs Rs 148, and the Tiago Petrol costs Rs 240.

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(Based on petrol price Rs 96.72 [Delhi], CNG price Rs 78.61 [Delhi] & public EV charging rate Rs 18/kWh)

Running Cost (detailed):

Capacities:
The Tiago EV lineup presents customers with two distinct options, each boasting different battery capacities: 19.2 kWh and 24 kWh. Alongside these electric variants, there is also the Tiago CNG variant to consider. The Tiago EV models feature battery pack capacities of either 19.2 kWh or 24 kWh, offering varying levels of driving range on a single charge. On the other hand, the Tiago CNG variant introduces a hybrid approach, equipped with a fuel tank capacity of 35L for petrol and 10 kg for CNG.

Efficiency and Costs:
Efficiency is a key factor across these models. The 19.2 kWh Tiago EV exhibits an efficiency of 13.02 km/kWh, while the 24 kWh version achieves 13.13 km/kWh. In contrast, the Tiago CNG showcases impressive efficiency as well, running at 26.5 km/kg on CNG. When it comes to costs, the public charging cost for both Tiago EV options remains consistent at Rs 18/kWh. In terms of CNG usage, the Tiago CNG’s cost per kilogram is Rs 91/kg.

Range and Charging/Refueling Costs:
Range plays a significant role in the decision-making process. The Tiago EV, powered by the 19.2 kWh battery, offers a range of 250 km on a full charge, while the 24 kWh version extends this range to 315 km. On the other hand, the Tiago CNG variant is designed for efficient city driving, with a range of 265 km on CNG alone. In terms of costs associated with replenishing energy sources, the approximate cost for a full charge of the 19.2 kWh Tiago EV hovers around Rs 350, while the 24 kWh version demands around Rs 450. For the Tiago CNG, refueling with a full tank of CNG incurs an approximate cost of Rs 900.

Running Costs for Daily Driving:
When considering the financial aspects of daily driving, running costs per kilometer become pivotal. The 19.2 kWh Tiago EV incurs a per km cost of Rs 1.40, while the 24 kWh version requires Rs 1.43 per kilometer driven. In contrast, the Tiago CNG, renowned for its cost-efficient operation, yields a running cost of Rs 3.40 per kilometer when powered by CNG. To gauge the monthly expenditure for a daily average of 50 km, the 19.2 kWh Tiago EV results in an approximate cost of Rs 2100, the 24 kWh version equates to around Rs 2145, and the Tiago CNG, when running exclusively on CNG, totals approximately Rs 5100 for the same distance covered.

Additionally:

The CNG variant comes with a five-speed manual gearbox whereas the EV variant has no gears. The CNG variant has no boot space whereas the EV variant has a 240L boot space.

Taking into consideration an average daily running of 50 km, you are spending Rs 2100 per month with the Tiago EV, whereas the running cost of the Tiago CNG comes out to be Rs 5100 per month.

Of the three variants (EV, CNG & Petrol), the Tiago EV has the most features. It has telematic capabilities with remote operations which can be controlled from your smartphone.

Although the Tiago EV is the most expensive of the three, its advanced features and lower operating costs can’t be ignored.

Conclusion:

CNG and electric vehicles are the top two options for people worried about skyhigh fuel prices. While CNG vehicles cost less to run than petrol & diesel ones, EVs offer an even lower running cost. The running cost comparisons usually involve public EV charging rates which are costlier. Charging at home makes it even cheaper to run. As far as ‘fueling’ convenience is concerned, nothing tops refueling at home. CNG users often have to endure long lines at CNG pumps.

When it comes to efficiency and being environment-friendly, CNG wins against petrol & diesel. But when against EVs, CNG stands to lose by a mile.