| ID | 177382 |
| Title Proper | Total cost of electric vehicle ownership |
| Other Title Information | a consumer-oriented study of China's post-subsidy era |
| Language | ENG |
| Author | Ouyang, Danhua |
| Summary / Abstract (Note) | The withdrawal of the purchase subsidy and the spread of Covid-19 have had a significant effect on Chinese consumers' purchase intentions regarding electric vehicles (EVs). Therefore, it is worthwhile analyzing the factors influencing EV purchase decisions from the consumer's perspective. We use a consumer-oriented model to analyze the total cost of ownership over 5- and 10-year holding periods in China for internal combustion engine vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). We include consumer usage habits and non-monetary costs to reflect consumer characteristics. The results show that the small BEVs will achieve parity before 2025, while medium-sized and large BEVs will do so around 2030. Regarding PHEVs, large and medium-sized models show better performance. Even though BEV and PHEV purchase costs will fall by 31%–36% and 16%–18%, respectively, between 2020 and 2030, most EV models will still not reach purchase cost parity by 2030. Incentive policies will have a significant impact, and oil prices are likely to have a huge impact on the time until EVs reach parity. Thus, policy-makers should introduce incentive policies aimed at ensuring a smooth transition to the electrification of China's vehicle fleet. |
| `In' analytical Note | Energy Policy Vol.149; Feb 2021: p.112023 |
| Journal Source | Energy Policy 2021-02 149 |
| Key Words | Total Cost of Ownership ; Electric Vehicle Cost ; Cost Advantage ; EV Subsidy |