Thinking of buying the Tata Tiago EV on a ₹25,000 monthly salary? We break down exactly how much EMI you’ll have to pay. Plus, we calculate how much you can save in 3 years compared to a petrol car. We also explain Tata’s new BaaS (Battery as a Service) model and if it’s a good deal for buyers.
Are you earning ₹25,000 a month and dreaming of buying your first car? The rising price of petrol and the huge expenses of owning a car often make people put this dream on hold. But electric vehicles (EVs) have completely changed the game in the Indian market. Today, we’ll break down the loan rules, the EMI math, and the actual savings you can make in 3 years. This will help you make the right decision.
Can you get a car loan on a ₹25,000 salary?
The first question that comes to mind is about the bank loan. People often think you need a very high salary for a car loan, but that’s not true. For example, according to Kotak Mahindra Bank’s car loan policy, the applicant’s minimum income should be ₹25,000 per month. You also need to be at least 21 years old and have one year of stability at your current home and job. This means if your monthly income is ₹25,000, you are officially eligible for a loan for the Tiago EV.
Tata Tiago EV: Price and Options
Tata Motors has given two great options to make this car accessible to the common person:
- Battery as a Service (BaaS): Under this new scheme, you can buy the car without paying for the battery. With this model, the ex-showroom price of the Tiago EV starts at just ₹4.69 lakh. After this, you have to pay a rent of ₹2.6 per kilometre for using the battery.
- With Fixed Battery (Outright Purchase): If you want to buy the whole car at once, the ex-showroom price for its ‘Smart’ base model with a 19.2 kWh battery is ₹6.99 lakh.
The Full EMI Calculation: How much will it cost you?
Let’s do the math for the EMI based on the ₹6.99 lakh model. If you make a down payment of ₹1,39,800 from the total price, your loan amount will be ₹5,59,200.
If the bank gives you a loan at an 8% interest rate for 5 years (60 months), your monthly EMI will be around ₹11,339. If you make a slightly lower down payment of ₹1,00,000, your EMI will be around ₹13,977 per month. For someone earning ₹25,000, an EMI of ₹11,000 might be challenging, but it’s not impossible. Especially when you look at the savings from its running costs.
How much can you save in 3 years compared to petrol?
The real benefit of buying an electric car is its low running cost. Let’s compare the expenses of a petrol Tiago and the Tiago EV:
- Running Cost per Kilometre: The running cost of a petrol Tiago AMT is about ₹5 per kilometre. On the other hand, if you charge the Tiago EV at home (at a rate of ₹10 per unit of electricity), its cost is only ₹0.82 to ₹0.86 per kilometre. Even if you use public fast charging, the cost only goes up to ₹1.4 per kilometre.
- Monthly Expense (50 km per day): If you drive 50 kilometres daily, you’ll need to spend about ₹7,500 on petrol for the Tiago. In the Tiago EV, your monthly electricity or charging cost will be just ₹2,100.
- Direct Monthly Savings: ₹7,500 – ₹2,100 = a saving of ₹5,400.
- Total Savings in 3 Years: If you save ₹64,800 a year (5400 x 12), your total savings in 3 years will be ₹1,94,400 (almost ₹2 lakh). That’s more than your down payment!
Maintenance and Servicing Costs
In petrol cars, expensive parts like engine oil, filters, and clutches need frequent replacement. But the Tiago EV doesn’t even have an engine, so its service cost is very low.
According to Tata Motors, the Tiago EV needs servicing every 6 months or 7,500 kilometres. The service cost for the first year is about ₹1,500 (which includes alignment, balancing, etc.). From the second year, the maximum annual service cost is only ₹4,000 to ₹5,000. This only includes the cost of changing the transaxle oil (around ₹1600), brake fluid (₹400), and coolant (₹1000).
Battery Warranty and Reliability
The biggest fear customers have about EVs is the battery failing. From a journalist’s perspective, this is a valid concern because the battery makes up 70% of the EV’s total cost. But Tata has made this very secure. The company offers an excellent warranty of 8 years or 1,60,000 kilometres on the Tiago EV’s battery and motor. This means you don’t have to worry about replacing the battery for the next 8 years, let alone 3.
The numbers speak for themselves. If your salary is ₹25,000, you are definitely eligible for a bank loan. Sure, budgeting for the EMI might be a tight financial decision. But if you consider the ₹5,000-₹6,000 you save every month on petrol and servicing along with the EMI for the new ₹4.69 lakh BaaS model or the regular model, the Tiago EV won’t feel heavy on your pocket. My 20 years of industry analysis tells me that people who are adopting EVs today are saving lakhs of rupees in the long run.