The global automotive industry’s shift toward electrification hinges on battery
electric vehicles (BEV) having a reduced total cost of ownership compared to
traditional vehicles. Although BEVs exhibit lower operational costs than
internal combustion engine (ICE) vehicles, their initial acquisition expense is
higher due to expensive battery packs. This study evaluates total ownership
costs for four vehicle types: traditional ICE-based car, BEV, split-power
hybrid, and plug-in hybrid. Unlike previous analyses comparing production
vehicles, this study employs a hypothetical sedan with different powertrains for
a more equitable assessment. The study uses a drive-cycle model grounded in
fundamental vehicle dynamics to determine the fuel and electricity consumption
for each vehicle in highway and urban conditions. These figures serve a Monte
Carlo simulation, projecting a vehicle’s operating cost over a decade based on
average daily distance and highway driving percentage. Results show plug-in
hybrids generally offer the most economical choice. Due to the BEVs’ heavier
weight and battery cost, they only become more cost-effective than plug-in
hybrids after 160 km daily travel, associated with only a small percentage of
drivers in the United States. Nevertheless, they remain cheaper than
conventional vehicles for most distances. The study also investigates the
effects of government subsidies, battery cost, and weight on overall expenses
for each powertrain. It concludes that opting for less expensive, albeit heavier
batteries would generally reduce EV ownership costs for consumers.
