Agora Verkehrswende: E-cars from the mid-range also cheaper without a premium
The Berlin-based think tank Agora Verkehrswende has calculated how an electric car compares to an internal combustion vehicle in terms of total costs using four examples, in light of the discussion about renewed purchase incentives for electric cars. The costs considered are those incurred in the first five years of use, from depreciation to costs for taxes, repairs, and energy. The comparison shows that purchase incentives – for example, in the amount of 6,000 euros – would be particularly useful for smaller and cheaper electric models, which are still economically disadvantaged compared to internal combustion vehicles. In higher vehicle segments, however, electric alternatives are often already cheaper, partly due to lower energy costs.
- Example 1: Opel Corsa Electric – without purchase incentive: +12.1%, with: -4.6%
- Example 2: Renault Kangoo E-Tech – without purchase incentive: +8.2%, with: -5.0%
- Example 3: Audi Q8 e-tron – without purchase incentive: -6.8%
- Example 4: VW ID.7 – without purchase incentive: -12.7%
Additionally, the NGO criticizes that the taxation of vehicles and energy still does not sufficiently take CO2 emissions into account, thus continuing to promote the sale of combustion vehicles. However, the total costs over the vehicle’s lifespan—from depreciation to taxes, repairs, and energy costs—are decisive for a vehicle’s economic efficiency. Here, the difference between combustion and electric vehicles is often significantly smaller than in the pure purchase price, as the energy costs per 100 kilometers are notably lower for electric driving. The longer an electric car is driven, the cheaper it becomes, according to the think tank.
With a holding period of five years, these savings are often still not sufficient to compensate for the higher acquisition costs. Especially with inexpensive and fuel-efficient models, the internal combustion engine is still more economical. Purchase incentives for affordable electric vehicles could significantly shift the economics in favor of the electric vehicle and thus appeal to broader population groups, analysts advocate.
In higher vehicle segments such as the upper mid-range and luxury class, electric alternatives are already cheaper in total costs over five years in many cases. Additionally, such models are significantly used as company cars, and users of electric variants benefit from a lower rate for company car taxation. Therefore, further promotion in this area would hardly be justifiable, the conclusion states.
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