Total Cost Analysis of Combustion and Electric Cars in Indonesia

Abstract

The electrification of transportation has been identified as a necessary aspect of climate change mitigation in order to limit global temperatures to 1.5°C above pre-industrial levels and prevent potentially catastrophic effects on the environment (Thorne & Hughes 2019). With the Electrified Vehicles (EVs) ventures being in the early stage, the costbenefit analysis of the vehicles is key towards capturing the Indonesian market. As consumers, however, pricing may not only be the costs they consider; they also consider the total cost of ownership (TCO) of the cars they purchase. The TCO model incorporated the manufacturer's suggested retail price (MSRP), tax, fuel cost, charging cost, maintenance cost, and residual value including depreciation. This study aims to compare the value of total cost of ownership of electric and conventional cars in Indonesia related to the relevant switching cost between EVs and ICEV. In this study it was concluded that the TCO value in HEV is smaller than BEV and ICEV. So that hybrid vehicles will be the most efficient car to have when driving long distances