Life Cycle Cost Modelling: What is the expected life cycle cost of an electric vehicle in comparison to a plug-in hybrid and a vehicle with combustion engine in Sweden?
2024 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE credits
Student thesis
Abstract [en]
The purpose of the study is to analyze the LCC of a fully electric vehicle, in comparison to a plug-in hybrid vehicle and a vehicle with an internal combustion engine, over a lifetime period set to 11 years on the Swedish automotive market. Different alternative scenarios have been created to visualize how changes in parameters estimates could impact the lifetime costing and breakeven analyses are performed in order to analyze what changes would make the vehicles economically indifferent to own. The LCC models of the study are inspired by the ones presented by Gharibeh et al. (2019).
The research methodology used in the analysis is a quantitative method with a deductive approach, where the starting point lies in the presented economic theories PV, and scenario analysis. The results shows that the plug-in hybrid vehicle Volvo XC60 has the highest LCC, calculated at 1,096,686 SEK in the base case scenario. The equivalent cost for the fully electric vehicle Tesla Model Y is calculated to 870,782 SEK while the internal combustion engine vehicle Volkswagen T-Roc driven by gas has the lowest LCC at 629,966 SEK. The breakeven scenarios shows that it would take a lot of incentives, both from politicians and vehicle producers to reach a more equal lifetime cost between the peers.
Place, publisher, year, edition, pages
2024. , p. 67
Keywords [en]
life cycle cost (LCC), scenario analysis, electric vehicles, alternative drives, breakeven scenarios
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hv:diva-21923Local ID: EXF800OAI: oai:DiVA.org:hv-21923DiVA, id: diva2:1874809
Subject / course
Business administration
Educational program
Magister i finans
Supervisors
Examiners
2024-07-082024-06-202024-07-08Bibliographically approved