How cost effective are electric scooters? MediaInsights.in

Also Read : Check out all the latest scooters in India

When it comes to the commuter space, e-scooters are the obvious and unequivocal weapon of choice. In fact, an argument can be made that the commuter scooter was always designed to be electrified, simply waiting for the technology to catch up. They’re far smoother, quicker, offer more storage and are considerably easier to maintain. They have also proven themselves fairly robust in the last few years. Suppliers who provide parts like suspension, handlebars, alloys, tyres – are the same for both ICE and EVs, so the notion that they cannot withstand the abuse thrown at them by Indian roads, like the Splendor or Activa can, isn’t one rooted in logic. Why then are e-scooter manufacturers facing difficulty in toppling the incumbent market leaders?

Also Read : What is PLI scheme and does it really make your EV cheaper?

Low running cost : fact or myth?

A recent post on X went viral after the user showed a recent bill from an authorised Ather Energy service centre. The post, which accused the brand of high service costs, despite the receipt clearly showing multiple repair costs, sparked a debate around just how affordable it is to maintain an e-scooter? As expected, most experiences in India’s urban clusters remain overwhelmingly positive.

According to Burjis Elavia, a resident of Mumbai who owns an Ola S1 Pro, the difference in maintenance costs is “night and day”. Elavia, who has owned his S1 Pro for over two years claims that he hasn’t had to send it for servicing even once. “There’s been no need for servicing. I’ve done 16,000 km on it and other than replacing the grab handle, which was loose, and putting new brake pads, there have been no expenses” he says, adding that he did go to Ola for a front suspension issue, which they fixed for free prior to issuing a recall for several batches suffering from the same issue.

Kirk Gomes, a resident of Chennai, has had a similar experience with his Ather 450X which he has owned for two years. “I don’t ride long distances on it. So I haven’t faced any issues. Ather called me for a routine service after 500 km, stating that the brake pads needed changing. They did that and returned the scooter within hours. There was some noise because the motor’s belt wasn’t re-aligned properly, but I called them and they took care of it.” Gomes adds that he has no plans of ever returning to an ICE scooter.

Maintenance costs for e-scooters are lower than those of ICE scooters. That is irrefutable. The maths, as presented by E-scooter manufacturers points at how quickly the additional purchasing cost premium can be bridged. Ather Energy’s own website claims that the total savings in running cost, which include fuel and maintenance costs, would amount to anything ranging from ₹55,000 to ₹67,000 over a period of five years (with roughly 15km of daily usage), depending on which city you’re in. Figures such as these rarely take into account the increasing per unit cost of electricity over the same period.

While the figure is similar to what most e-scooter manufacturers would depose, it is an optimistic one. It also fails to take into account that the bulk of scooter buyers across India stop sending their scooters to authorised dealers once the scooter’s warranty expires. While it is far from recommended, it is commonplace in a country famous for jugaad. It is this bulk of scooter buyers that e-scooter manufacturers have not been able to convert. There’s also the fact that several brands having “experience centres” instead of authorised dealerships puts the onus of registering the vehicle at the RTO, squarely on the consumer, who has to deal with extensive waiting periods to get the scooter registered.

Resale value and longevity

While the numbers favour e-scooter ownership on paper, individual interactions and online forums paint a different picture. This is primarily due to the fact that the resale value of e-scooters varies dramatically. Vinod Goyal, a resident of Bengaluru and an Ather 450X owner claims that even though he purchased the scooter for close to ₹1.4 lakh, he has offers from interested parties willing to purchase it for ₹1 lakh. This is a rare occurrence, as many e-scooter owners have parted with their scooters for a fraction of that price. This becomes a particularly pressing issue once the scooter’s battery life cycle nears completion, along with the motor, at which point an e-scooter is worth less than half of its original value. When you take into account the replacement cost of an average e-scooter battery, sized between 3kWh to 4.0 kWh, the additional cost of ₹40,000 – ₹60,000 adds to the total cost of an e-scooter’s ownership, tipping the scales, once again, in favour of ICE scooters.

This, at a time when the bulk of commuter scooter and 100cc motorcycle owners are content with the cost economics and the tried-and-tested durability of their Activa/Jupiter/Splendor makes them far less likely to take a chance with new technology. Technology that is dependent on variables like consistent electricity supply and the presence of individual domestic charging units. Until these issues are resolved, the bulk of commuters across India aren’t likely to want to fix what isn’t broken.

(Parth Charan is an independent automotive journalist and writer who has written on cars, motorcycles and the automotive industry for the past 12 years. He lives in Mumbai.)

First Published Date: 27 Aug 2024, 10:24 AM IST