Evaluation of Cost Competitiveness of Electric Vehicles in Malaysia Using Life Cycle Cost Analysis Approach

Siti Indati Mustapa, Bamidele Victor Ayodele, Waznatol Widad Mohamad Ishak and Freida Ozavize Ayodele
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Siti Indati Mustapa: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia
Bamidele Victor Ayodele: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia
Waznatol Widad Mohamad Ishak: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia
Freida Ozavize Ayodele: Department of Accounting and Finance, Faculty of Business, and Management, UCSI University, Kuala Lumpur 56000, Malaysia

Sustainability, 2020, vol. 12, issue 13, 1-14

Abstract: The need to mitigate CO 2 emissions from the transportation sector has necessitated the adoption of electric vehicles (EVs) and other forms of alternative vehicles. Despite the global rise of EVs demand as a complementary means of green transportations, the level of adoption in Malaysia is still not encouraging. Therefore, this study aimed to investigate the cost competitiveness of EVs in comparison with Hybrid Electric Vehicles (HEVs) and an Internal Combustion Vehicle (ICV) based on Malaysia scenarios. Using the existing data in Malaysia, life cost analysis (LCC) of two EVs was computed and compared with HEVs and ICVs. The study shows that Nissan leaf and BMW i3s EVs with LCC of $1.75 and $2.5 per km are not cost-competitive based on prevalent data available in Malaysia compared to the HEVs and ICV. Based on the sensitivity analysis, changes in the components of the operating costs significantly influence the accumulated cost of ownership of the EVs whereas the cost of ownership of the HEVs and ICVs did not experience any significant influence. The findings from this study could serve as bases for policymakers to formulate appropriate policies and strategies to improve the competitiveness of EVs in Malaysia.

Keywords: electric vehicles; electric vehicle policies; cost competitiveness; life cycle cost; Malaysia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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