Did you know that electric cars cost less to own and run than diesel or petrol alternatives? In case you weren’t aware, a new academic study has revealed that electric cars are way cheaper to own and run compared to petrol or diesel. The study took into account numerous factors including depreciation, maintenance costs, insurance, taxes and fuel or electricity.
The purported research, entitled Ownerships Cost and Market Share for Electric and Hybrid Cars in the US, UK and Japan, also considered the government subsidies that attract buyers to procure electric cars. The researchers found that ownership costs will eventually become lower than diesel or gasoline vehicles without the government subsidies. Typically, the UK government provides about $7,519 in subsidy while the US government offers around $10,608.
China Holds a Bigger Market Share for EVs
An exclusive report exhibited that pure electric vehicles cost less over an average four-year ownership than diesel or petrol vehicles in the US, UK, and Japan. Despite a growing concern for air pollution, China is the market leader. Out of 32 million vehicles, only 120,000 pure electric cars are available in the United Kingdom despite many cities in this nation having illegal levels of sulfur dioxide, nitrogen oxide, and other particles.
Improved Charging Infrastructure
The researchers have projected that the sales of electric cars will surpass diesel or petrol vehicles by March 2019, upholding Tony Seba’s earlier predictions. Over the last five years, diesel vehicles have seen a 30% decline in sales as electric vehicles have witnessed a 37% growth in their sales. The increase in sales of pure electric vehicles partially owes to the fact that companies have invested a lot to advance their charging infrastructure, both at home and in the charging station.
Another factor driving the rapid rise in sales of the electric cars is their lower cost, as per the researchers. The government support directly inspires the lower cost of the electric cars at the moment. However, researchers say pure electric vehicles will be the cheapest alternatives even without government subsidies in a few years to come.
A study analyzed the total ownership costs of cars over a four-year period. As mentioned earlier, the study considered many factors—purchase price, taxation, depreciation, fuel, insurance and maintenance. Surprisingly, pure electric cars emerged to be the cheapest option in all the examined markets—Japan, UK, California and Texas.
Lower Fuel and Maintenance Costs
Electric vehicles have lower costs as electricity is much cheaper than diesel or gasoline. Furthermore, EVs highlight cheaper maintenance costs because their engines are less sophisticated and aid in breaking the car hence saving on the brake pad costs. The annual cost of EVs in the United Kingdom was around 10% lower than diesel or petrol alternatives in 2015.
The study found that hybrid cars were a little costly than diesel or petrol cars as a result of their lower subsidies. Besides, the researchers added that plug-ins were significantly more expensive as buyers are literally paying for two drivetrains in one car. Japan was the only exception where plug-in hybrids were awarded higher subsidies.