Economic comparison of EV and hybrid vehicle ownership

Discussions regarding the economic viability of electric vehicles (EVs) versus hybrid and internal combustion engine (ICE) vehicles highlight a tension between upfront costs and long-term savings.

A study by AAA suggests that hybrid vehicles currently lead in total ownership cost savings across various categories, such as SUVs and sedans, because high depreciation and financing costs for EVs can outweigh their fuel savings. However, rising gasoline prices are narrowing this gap. In the European market, Volkswagen Group reports a surge in interest for entry-level electric models, noting that high fuel prices are accelerating the transition to electric mobility. The company’s MEB+ platform, supporting models priced between 25,000 and 30,000 euros, has already garnered nearly 150,000 orders.

In contrast, individual consumer reports and lifetime cost analyses indicate that EVs can offer significant long-term savings. For example, one driver in Melbourne recouped a $10,000 price premium within two years through low running costs and solar charging. Data from Motus-E indicates that traveling 100 km in an electric car costs approximately 5.50 euros, compared to 11.60 euros for gasoline. For an annual distance of 12,000 km, owners could save more than 850 euros per year compared to gasoline vehicles.

For businesses, Audi suggests evaluating different powertrain families based on daily mileage and charging availability, noting that fully electric models are most efficient when infrastructure, such as 22 kW office charging stations, is accessible. While high initial prices and limited second-hand options have historically been barriers, the increasing availability of used EVs and rising petrol prices are shifting consumer perspectives.