Estimating the Total Cost of Ownership (TCO) of Electrified Vehicle in Indonesia

Riyanto Riyanto, Setya Agung Riyadi, Chaikal Nuryakin, Natanael Waraney Gerald Massie

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

With the Electrified Vehicles (EVs) ventures being in the early stage, the cost-benefit 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. With that regard, this study discusses the total cost of ownership (TCO) of the EV in the Indonesian context, including calculations for HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), and BEV (Battery Electric Vehicle), as well as Internal Combustion Engine (ICE) vehicles for comparisons. Specifically, this study aims to: (i) identify the monetary factors which affects total cost of ownership (TCO) of electric and conventional cars in Indonesia, (ii) construct a TCO model and calculate the value of total cost of ownership of electric and conventional cars in Indonesia, and (iii) compare the value of total cost of ownership of electric and conventional cars in Indonesia related to the relevant switching cost between EVs and ICE. Our findings suggest that generally, in Indonesia, higher usage and/or length of ownership of EVs lead to more competitive TCO compared to ICE. We also explore a comprehensive number of scenarios (e.g., total annual mileage, years of ownership, price, fuel prices, and cost incentives) in which the TCO of EV maximizes Indonesian consumer welfare.

Original languageEnglish
Title of host publicationICEVT 2019 - Proceeding
Subtitle of host publication6th International Conference on Electric Vehicular Technology 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages88-99
Number of pages12
ISBN (Electronic)9781728129174
DOIs
Publication statusPublished - Nov 2019
Event6th International Conference on Electric Vehicular Technology, ICEVT 2019 - Bali, Indonesia
Duration: 18 Nov 201921 Nov 2019

Publication series

NameICEVT 2019 - Proceeding: 6th International Conference on Electric Vehicular Technology 2019

Conference

Conference6th International Conference on Electric Vehicular Technology, ICEVT 2019
Country/TerritoryIndonesia
CityBali
Period18/11/1921/11/19

Keywords

  • electrified vehicle
  • incentives
  • Indonesia
  • total cost of ownership

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