EVs are cheaper than ICE vehicles over 5 years
According to a study, carried out by E-Mobility Solutions (Spain), EVs are cheaper to own than ICE vehicles, after only 5 years, when comparing TCO (Total Cost of Ownership) of electric vehicles with their ICE (internal combustion engine) equivalents.
Vila-real (SPAIN), 5th Feb. 2022
A recent study of 66 vehicles in Spain shows that the TCO (Total Cost of Ownership) of EVs is, on average, lower than ICE cars over a period of 60 months. This difference increases dramatically over 10 years, as EV running costs (energy costs, road tax, and maintenance) are 50% cheaper than ICE vehicles.
The study reveals that EVs have a 3.6% TCO (Total Cost Ownership) cost advantage over petrol cars at 15,000 km/year, in segments A (Minicompact),C (Small Family Car) & D (Large Family Car). In segments C & D, EVs are more economical after only 33km/daily, that's 12,000km a year. The EV cost advantage increases with kms. covered. For example, the average savings at 12,000kms/yearly is 2.170€, while at 15,000km/yearly it increases to 3.382€. The average Spanish driver covers between 12,000-15,000km yearly in a privately owned vehicle.
In the B segment (Subcompact), when the purchase price difference between EVs & ICE vehicles is below 10,000€, an electric vehicle usually works out cheaper after 5 years use, with 15,000km/yearly. Such is the case when comparing the Seat Arona (20,110€), Spain's top selling petrol vehicle in 2021 & the Opel Corsa-e (29,000€), which costs 8.890€ more. After 5 years driving (15,000 yearly), the Opel Corsa-e is actually 408,50€ cheaper.
E-Mobility Solutions compared the TCO of 41 best-selling 2020/2021 ICE vehicles in Spain with 25 of the most popular EVs currently available on the Spanish market. The vehicles with lowest TCO of the 66 analysed at 75,000kms, over a 5 year period, were both EVs: The Dacia Spring (20,079 €) & the Renault Twingo (22,379 €). The best performing petrol vehicles were the Dacia Sandero (22,741 €) & the Kia Picanto (23,195 €).
Lower Maintenance Costs
The data shows clearly that EVs have consistently lower maintenance than internal combustion engine powered vehicles, due to fewer moving parts. Overall, the average EV costs 40% less to maintain than an ICE vehicle.
The study took place in Q4 2021 and shows that EV running costs clearly offset the higher purchase price tag, when compared with ICE vehicles, even after 5 years, with overall average savings of between 1,200€ to 1,500€, depending on distance driven.
Over time, even cheaper
When projecting TCO over 10 years, the benefits of owning an EV increase even more, as running costs (taxes, electricity & maintenance) are 50% lower. On average, the yearly running cost at 15,000km is 1,245 €/year for EVs, that's 50% less than a petrol vehicle, which costs 2,460.50 €, which means over 10 years the savings amount to 12,450 €, practically the cost price of a new Kia Picanto.
If we take a look at small, city cars (segment A), the average savings on running costs work out at 1,125€ yearly, while for larger family cars (segment D) the saving is 1,356€ per annum.
From the statistics gathered, almost 90% of all EV charging in Spain is done at home, showing that although public charging points are significant for longer journeys, they're not absolutely essential for day to day EV commuting (81% percent of the total population in Spain live in and around large towns & cities). A home (residential) charging point is a must, even though this is presently a big challenge in Spain, as only 35%-40% of houses (residential flats & houses) have a garage or parking facilities.
TCO is the way to go for 1st time EV buyers
Given that running costs play such an important part of the overall savings on an EV, it's important to stress just how useful using TCO (Total Cost Ownership) assessment can be when calculating the cost of acquiring a new EV, and in particular contrasting costs between EVs & ICE vehicles. E-Mobility Solutions is presently working towards promoting this idea among EV car buyers in Spain.
The complete study, "El automóvil eléctrico es más barato. Estudio del Coste Total de Propiedad de un automóvil eléctrico en España (enero 2022)." is available in Spanish here.