Tata Tiago EV 2026: How much EMI will have to be paid every month to buy Tata Tiago EV on a salary of ₹ 25,000? How much can Tata Tiago EV save compared to a petrol car in 3 years? What is the BaaS (Battery as a Service) model of Tata Tiago EV and how beneficial is it for buyers?
Do you earn Rs 25,000 per month and dream of buying your first car? Seeing the rising prices of petrol and the huge expenses of a car, a common man often postpones the idea of buying a car. But electric vehicles (EV) have changed all the old rules of the Indian market. Today we will understand the rules of the loan, the mathematics of EMI and the calculation of your actual savings in 3 years, which will help you in taking a right decision.
Can I get a car loan on a salary of ₹25,000?
The first question that comes to mind is about bank loan. Often people think that a car loan requires a high salary. but it’s not like that. For example, as per the rules of Kotak Mahindra Bank’s car loan policy, the minimum income of the applicant for the loan should be Rs 25,000 per month. Additionally, you must be at least 21 years of age and have 1 year of stability in current residence and employment. That means, if your monthly income is Rs 25,000, then you are officially eligible for the Tiago EV loan.
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Tata Tiago EV Price and Options
Tata Motors has given two great options to make this car accessible to the masses:
- Battery as a Service (BaaS): Under this new scheme, you can buy a car without paying the cost of the battery. The ex-showroom price of Tiago EV with this model starts at just Rs 4.69 lakh. After this, you will have to pay a rent of Rs 2.6 per kilometer for the use of the battery.
- With fixed battery (Outright Purchase): If you want to buy the entire car outright, the ‘Smart’ base model with its 19.2 kWh battery is priced at Rs 6.99 lakh, ex-showroom.
Complete EMI calculation: How much will it burn on your pocket?
We understand the EMI maths based on the model priced at Rs 6.99 lakh. If you make a down payment of Rs 1,39,800 out of the total price of the car, your loan amount will become Rs 5,59,200.
If the bank gives you a loan for 5 years (60 months) at an interest rate of 8 percent, then your monthly EMI will be around Rs 11,339. If you make the down payment a little less, i.e. Rs 1,00,000, your EMI will be around Rs 13,977 per month. For a person earning ₹25,000, taking out an EMI of Rs 11,000 may be a bit challenging, but it is not impossible. Especially when you consider the savings in running costs.
How much savings compared to petrol in 3 years?
The real advantage of buying an electric car lies in its running cost. Let’s compare the cost of petrol Tiago and Tiago EV:
- Running cost per kilometer: The running cost of Tiago petrol AMT comes to around Rs 5 per kilometre. At the same time, if you charge Tiago EV at home (at the rate of Rs 10 per unit electricity), then it costs only Rs 0.82 to Rs 0.86 per kilometer. Even using public fast charging, this cost goes up to only Rs 1.4 per kilometer.
- Monthly Expenses (50 Kms per day): If you drive 50 Kms daily, then you will have to fill petrol worth around Rs 7,500 every month in Tiago. Whereas in Tiago EV your monthly electricity or charging expenses will be only Rs 2,100.
- Direct savings per month: Rs 7,500 – Rs 2,100 = Rs 5,400 saved.
- Total savings in 3 years: If you save Rs 64,800 (5400 x 12) in a year, your total savings in 3 years will be Rs 1,94,400 (approximately Rs 2 lakh). This is more than your down payment!
Maintenance and servicing costs
In petrol cars, expensive parts like engine oil, filter and clutch have to be changed frequently. But Tiago EV does not have an engine, hence its service cost is very low.
According to Tata Motors, the Tiago EV is serviced every 6 months or 7500 kilometers. Its first year’s service cost comes to around Rs 1,500 (which includes alignment, balancing etc.). From the second year onwards, its maximum annual service cost is only Rs 4,000 to 5,000. It only costs to change the transaxle oil (about Rs 1600), brake fluid (Rs 400) and coolant (Rs 1000).
Battery Warranty and Reliability
The biggest fear in the minds of customers regarding EV is battery failure. From a journalist’s perspective, this concern is justified, as the battery accounts for 70% of the total cost of an EV. But Tata has made it very safe. The company gives an excellent warranty of 8 years or 1,60,000 kilometers on the battery and motor of Tiago EV. That means, let alone 3 years, you don’t have to worry about changing the battery for the next 8 years.
The figures are giving clear testimony. If your salary is Rs 25,000, then you are definitely eligible for a bank loan. Admittedly, budgeting for EMIs can be a tight financial decision. But if you combine the EMI of the new BaaS (Battery as a Service) model of Rs 4.69 lakh or the regular model with the Rs 5000-6000 saved every month on petrol and servicing, the Tiago EV will not be heavy on your pocket. Industry analysis of 20 years says that people who are adopting EVs today are saving lakhs of rupees in the long run.
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