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Electric is cheaper. A lot.

Why electric cars are cheaper

The total cost of ownership of a car (TOC) is composed of the purchase price, maintenace cost, and operating cost.

Electric cars are cheaper in all of those thre dimensions:

  • Electric cars do not need a complex motor that burns fuel; it has small motors directly on the wheels. It also does not need a transmission gesr, because electric motors don’t require transmission. It is much more simple to build.
  • Electric cars have less moving parts, and therefore require less maintenace and repair.
  • The efficiency of an electric motor is 100%. In an EV, 80-90% of the energy is on the wheel. A combustion engine’s efficiency is limited by the laws of thermodynamics, and can reach a maximum of 35%. What is on the wheel is between 20 and 25%. An electric car requires between 3 to 4 times lesss energy to drive you from A to B.
  • Renewable electricity is cheaper than oil.
.Electric cars are cheaper

Purchase cost

EV vs gasoline car cost

Cost comparison between electric car and gasoline/diesel car for a mid-class sedan: the key cost component of EVs has been the battery. However, due to large investments in R&D and mass production, the energy density of batteries has increased while costs have decreased significantly. EVs and ICE vehicles are now on par regarding purchase price.
Because an EV does not need a big motor nor transition gear, building an EV is cheaper than a combustion-engine car. Maintenance and repair cost are also lower due to the much smaller number of moving parts within the vehicle.

Operating cost

Electric car vs gasoline car cost

Operating cost of an electric car vs. a gasoline car (mid-range sedan): electricity cost and gasoline cost vary highly from country to country; a fixed price therefore cannot be calculated. However, the range of cost is strongly in favour of electric cars, with the median being 7 U$/100km for EVs, and 12 U$/100km for ICE cars.
The reason for this is the much higher efficiency of an electric motor (up to 100%) vs the combustion engine (max 35%). An Ev in the mid-range calss uses 20 KWh/100km, while an ICE uses 8l of gasoline, wich equals 72 kWh.

Electric car sales: 100% share expected between 2028 and 2035

Irrespective of coming climate policies, electric cars will be the mobility of choice in the near future. They are cheaper. It’s simple economics

Electric car sales trends