Electric Vehicle economic cost and savings assessment

Electric Vehicles (EVs) are typically more expensive to buy than an Internal Combustion Engine (ICE) car, but are cheaper to operate given their lower energy and maintenance costs.

The cost of electricity per kilometre or mile driven for an EV is substantially lower than the equivalent cost of a liquid fuel. For an ICE vehicle, typically only one-quarter of the energy contained in the liquid fuel is used to move the vehicle, while the other three quarters is wasted as heat and vibration. Electric motors are more efficient at converting energy into moving the vehicle, with an efficiency of 90% or more.

Electric Vehicles typically have far lower maintenance costs, because electric motors are a simple and mature technology with fewer components than an ICE engine. On an EV, there are no spark plugs or carburettors to replace, no engine oil or air filters to change, etc.

These reduced operating expenses often lead to substantial savings over the medium term. These savings increase if you drive further each year, or if the price of petrol / gasoline / diesel rises.

Click here to use our self-service analytical tool which compares the 5 year ‘Total Cost of Ownership’ between an ICE (Internal Combustion Engine) car powered by petrol or diesel, versus a Battery Electric Vehicle powered by electricity. Some screenshots are included below. You can access the tool from the Platform menu, under the ‘EV Costs’ plan, with access added via Your Account.