Total cost of ownership of EVs
The future of EV is bright: (1) OEMs are investing huge sums of money to ramp up the electric vehicle production. (2) The number of electric car models on the European market will more than triple over the next three years. (3) The charging infrastructure which is another key aspect of EVs, is improving rapidly.
But when it comes to price, the perception changes.
EVs are regarded as expensive due to the high battery costs which drive up the purchase price. But if you factor in all the costs and assess the total cost of ownership (TCO), is it right to perceive EVs as being expensive?
Understanding the end-to-end costs
- How can a framework be developed to achieve a like-for like comparison between electric vehicles and vehicles with an internal combustion engine (ICE)?
- Looking at the TCO for fleets in Europe, what is a fair cost comparison when you include all the cost elements, such as maintenance, tyres, taxes and fuel/electricity?
We have studied 13 countries and almost 1000 different car scenarios with different term and mileage and put all the significant results on a whitepaper for you. Here's a sneak peek of some of the results:
- a perfect like-for-like comparison is not feasible with EVs. There are always other trade-offs to be considered.
- the TCO comparison shows that the TCO of EVs already equals – or is even lower than – the TCO of ICE vehicles in many countries. This means that EVs are a great alternative in lease policies and few are the reasons to not allow EVs from a cost perspective.
- a key consideration is to include all cost elements in the comparison. The most significant cost differences are in depreciation, maintenance, taxes and fuel/electricity.
Interested in learning more about the real cost of EVs? Download the free white paper by clicking on the button below.