Other Vehicle Cost Factors

The cost savings calculator does not factor in any costs that may be incurred in battery replacement costs nor does it factor in the additional costs associated with internal combustion engine (ICE) servicing.  So let’s consider those.

Batteries wear out and a replacement battery will eventually be needed. EV manufacturers offer at least an 8 year warranty on the battery with many now offering a 10 year warranty.  However real world experience is indicating that expected battery useful life spans are greater than expected and with improving battery technology they are now lasting between 12 and 20 years with additional extended life in energy storage.

The continued reduction in battery costs with economies of scale and the introduction of less expensive battery materials, such as sodium, means the cost of battery replacement of a vehicle manufactured in 2026 will be significantly less than the cost of replacing or reconditioning an ICE engine with all its associated parts. 

Every car owner knows the expense of servicing and replacement parts – hefty!  With EVs there is relatively little servicing and of course no expensive exhaust systems, starter motors, fuel injection systems, radiators and a myriad of other parts that simply aren’t needed with an EV.  What are those cost savings over a 10 year period. Difficult to determine exactly but in a word – substantial.

The average kilometres travelled per annum for all vehicles types in Australia is 12,100kms annually – the average for passenger vehicles is 11,100kms annually (30.41kms per day) according to the Australian Bureau of Statistics (2020 figures). This survey also states the average fuel consumption of passenger vehicles is 11.1 litres per 100kms. The 2020 ABS Survey released in December 2020 is the final release of this survey.