Total Cost of Ownership and Its Potential Implications for Electric Vehicle Diffusion
Editor: Miko Laakso, Kalevi Ekman
Author: Hagman, Jens; Ritzen, Sofia; Janhager Stier, Jenny
Institution: The Royal Institute of Technology, Sweden
Section: Users in design and development
Battery Electric Vehicles have been slow to diffuse on the international as well as the Swedish market. Existing literature have pointed to situational factors such as economical factors, size and performance to be of high importance for car purchasers in their choice of car. In this paper, the authors investigate the apparent discrepancy between purchase price and the Total Cost of Ownership between Internal Combustion Engine Vehicles and Battery Electric Vehicles. The Total Cost of Ownership computation reveals that Battery Electric Vehicles can be cost competitive with Internal Combustion Engine Vehicles, a significant finding, that could prove to be of importance for the diffusion of Battery Electric Vehicles, although further studies are needed to test car purchasers’ knowledge regarding the Total Cost of Ownership analysis.