The Total Cost of Ownership (TCO) analysis helps to understand the different cost elements across the life cycle of vehicle including various capital costs, taxations, and operational costs. It offers more accurate assessment of the economic efficiency of an electric vehicle (EV) over Internal Combustion Engine vehicle (ICEV). The methodology used for the analysis is shown in figure.
• The different CAPEX and OPEX costs are annualized (i.e., adjusted to reflect a value on an annual basis) to arrive at total yearly cost, which is then used to derive TCO per km. The TCO analysis also considers existing government incentives to EVs (example: subsidy of 3,200 USD to e-Bus operators).
• Battery replacement cost is accounted depending on battery life for each vehicle segment.
• Specific inputs required for TCO calculation of ICEV: Average vehicle efficiency, average run/ day, vehicle life, interest rate, operational days per year, etc.
• Specific inputs required for TCO calculation of EV: Battery size, average vehicle efficiency, average run/ day, charger size, vehicle life; charger life, interest rate, operational days per year, etc.