152
Total Cost of Ownership Analysis for Bhutan
Results of TCO Analysis for Taxis The TCO analysis for the taxis segment is preliminary because it takes into account only the cost side of the taxi operation; additional information is needed to estimate any potential revenue impact of shifting to EVs. Revenue impact could result from lost time as a result of having to charge several times of day, representing a loss in revenue for each driver. In addition, a more detailed TCO analysis will also need to take into account different vehicle use patterns, which will be unique in the taxi segment, and other taxi-specific factors. Because several factors related to the taxis are unknown, calculations considered several options: • The cost of the EV at refurbished price (Nu 800,000) and full price (Nu 1,800,000) • The option with the cost of battery replacement (annual mileage of 50,000 km, which will require a battery replacement costing Nu 165,000 in year three) and the option without battery replacement (annual mileage of 20,000 km, which will require no battery replacement in the 8-year operating period) Figures C.3 and C.4 illustrate the TCO comparison (EV vs. ICE) for taxis for two different estimated annual fuel price increases (7 percent and 1 percent). Based on the initial analysis, switching to EVs in the case of taxis will be financially viable. However, other factors will also influence this switch, given the
Figure C.3 TCO Comparison of ICE and EV for Taxis, Annual Fuel Price Increase at 7% 4,000,000 3,500,000 3,000,000
Nu
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
ICE Maruti Alto 800 @ 50,000 km
EV Nissan Leaf refurbished price @ 50,000 km
EV Nissan Leaffull price @ 50,000 km
TCO @ 10% Discount rate
ICE Maruti Alto 800 @ 20,000 km
TCO @ 15% Discount rate
EV Nissan Leafrefurbished price @ 20,000 km w/o battery replacement
EV Nissan Leaffull price @ 20,000 km w/o battery replacement
TCO @ 5% Discount rate
Source: World Bank analysis. Note: EV = electric vehicle; ICE = internal combustion engine; TCO = total cost of ownership.
The Bhutan Electric Vehicle Initiative • http://dx.doi.org/10.1596/978-1-4648-0741-1