LCV

In the current scenario, CNG comes across as the cheapest alternative powertrain due to the prohibitively high
initial cost of electric LCVs.

In case of LCVs (at Mumbai prices), operating cost of an EV is ~50% less than that of a comparable diesel vehicle.
In the sixth year both electric and diesel versions are likely to break even for FY24 prices.

However, with respect to CNG the difference in operating costs of an electric vehicle is <30%, due to which the
break-even period of an electric vehicle with respect to a comparable CNG vehicle is relatively higher at <15
years.

With respect to cost of ownership, while EVs may be able to match the cost of diesel LCVs by FY24, they will
still be considerably costlier than CNG LCVs. This when looked at in conjunction with the focus of the

government on improving the natural gas grid in India, is expected to keep the overall adoption levels of EVs in
LCVs at 1-3% even by FY24.

TCO period (years) 4 6 8 TCO period (years) 4 6 8

Diesel 3.8 43 4.0 Diesel 47 5.1 46
CNG 35 37 34 CNG 4.0 4.0 37
Electric 73 5.2 48 Electric 6.6 51 47

Note: Numbers denote total cost of ownership in Rs per km, TCO period units in years

ICV

In case of electric intermediate commercial vehicles (ICVs) both initial cost and operating cost (including battery
replacement) are prohibitively high as of now. By fiscal 2024, the cost difference between diesel and electric IC Vs
is expected to remain high with electric ICV costing more and CNG versions will be relatively cheaper to own
compared to electric versions

Some short haul applications are likely to move to CNG (if CNG fuel cost remains low) to take advantage of the
cost benefit. CNG ICVs have lower operating cost in comparison to diesel and also electric vehicles.

Thus the substantially low cost of ownership of CNG vehicles could limit the penetration of the electric
powertrains in the ICV segment to near negligible levels.

    

Y20
TCO period (years) 4 6 8 TCO period (years) 4 6 8
Diesel 12.6 111 10.4 Diesel 14.6 12.7 TL
CNG 99 8.6 8.1 CNG 108 93 86
Electric 26.0 23.0 © 213 Electric 252 224 © 209

Note: Numbers denote total cost of ownership in Rs per km, TCO period units in years

MCV

Cost of ownership of an electric bus is ~1.5X that of a standard diesel bus, primarily due to high purchase cost.
Owning CNG buses is Rs 1.3-1.4 crore cheaper than electric ones. While this cost gap would reduce going
forward, electric buses are still expected to need capital of Rs 1-1.2 crore by fiscal 2024.

In the bus segment, owing to the excessively high battery cost, there is 4-5X difference in the initial purchase cost
between a diesel/cng and an electric bus

As a result of this high differential, the breakeven period is more than 20 years between electric and diesel
powertrains despite a 30-35% lower operating cost for electric vehicles.

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