The report primarily focuses on two segments: compact cars (C-segment) and mini cars (A-segment), examining the Volkswagen (VW) ID.3 Pro and Dacia Spring Extreme Electric 65 as representatives of the EV market, and their ICE counterparts, the VW Golf VIII Style 2 and Toyota Aygo X 1.0, respectively.
One striking revelation from the study is that, in the compact car segment, owning an EV is more cost-effective than its ICE counterpart. Over a four-year period, EV owners in this segment can save over €5,100 in total ownership costs, totaling around €49,900 without any incentives. Factors contributing to this favorable outcome include the base price and value-added tax (VAT) of the EV, fuel costs for the ICE vehicle, and insurance for the EV.
Additionally, the report emphasizes the impact of incentives on EV affordability. When the one-time purchase incentive is applied, the costs of purchasing a mini car EV become slightly cheaper than an ICE vehicle. In the compact car segment, it significantly reduces the total cost of ownership, making the EV more accessible.
The study also evaluates the costs associated with leasing EVs. Over a four-year period, leasing costs are cheaper for compact EVs, thanks in part to the one-time purchase incentive. It’s noted that leasing costs can comprise a significant portion of the total costs for EVs, especially in the compact segment.
A compelling finding from the report is that charging an EV in Germany is consistently cheaper than fueling an ICE vehicle within the same segment. Various charging scenarios are examined, revealing that reliance on public charging increases costs over a four-year period. However, even with these variations, the report highlights the cost-efficiency of EV charging compared to traditional fueling.
While the report demonstrates the financial benefits of EV ownership, it also raises concerns regarding affordability for individuals with lower incomes. For those in the lowest income bracket, the cost of owning a compact EV can account for a disproportionately high share of household net income, even with incentives.
In summary, the ICCT’s report provides a comprehensive analysis of the costs of charging and fueling EVs in Germany. It underscores the economic benefits of EV ownership in the compact car segment and the role of incentives in making EVs more accessible. However, it also highlights the challenges faced by lower-income individuals, calling for further measures to ensure equitable access to sustainable transportation.
The report’s findings are expected to inform ongoing discussions and policies aimed at accelerating the transition to cleaner and more sustainable mobility in Germany.
Source: Are battery electric vehicles cost competitive? | the ICCT
