Why Electric Trucks Can Cost Less Than Diesel Trucks Over 5 Years

Operating costs are an important consideration when managing a commercial fleet. As businesses look for more efficient and lower-emission vehicles, electric trucks are emerging as an alternative to diesel trucks. However, choosing a vehicle should not be based on the purchase price alone. Energy, maintenance, and operating costs also need to be considered to determine whether a vehicle fits the business’s needs. So, how different are the costs of an electric truck vs. a diesel truck over five years? Take a closer look at the simulation below.

Understanding Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) helps companies look at the total cost of a vehicle throughout its use, rather than focusing only on the purchase price.

This approach is important when comparing electric and diesel trucks, particularly when evaluating how energy, maintenance, and operating costs affect the vehicle’s total cost over five years. Some of the costs to consider include:

• Vehicle purchase price.
• Electricity or fuel costs.
• Maintenance and repair costs.
• Other operating costs.
• Vehicle resale value.

Comparing Electric Truck and Diesel Truck Costs

When comparing an electric truck vs. a diesel truck, electric trucks generally have lower energy and maintenance costs. Electric motors also have fewer components, which can make maintenance simpler.

Diesel trucks, on the other hand, typically have a lower upfront purchase price, while fuel infrastructure is widely available. Electric trucks require a higher initial investment, including charging infrastructure. However, lower energy and maintenance costs can also affect the vehicle’s total cost over time.

5-Year Savings Simulation

As a general illustration, vehicle costs can be calculated based on mileage, energy consumption, maintenance, and energy prices. When used regularly, electric trucks have the potential to reduce energy and maintenance costs from year to year. However, the final result will still depend on the operating conditions and usage patterns of each fleet.

Here is an example of how the costs may compare:

With lower operating costs, electric trucks have the potential to deliver long-term savings. However, the actual calculation should still be adjusted based on the conditions and requirements of each fleet.

Factors That Affect Electric Truck Savings

The amount a company can save with an electric truck can vary depending on its operations. Several factors should be considered, including:

• Driving distance: The more frequently a truck is used, the greater the potential energy cost savings.
• Energy prices: Changes in electricity and fuel prices can affect operating costs.
• Route characteristics: Road conditions, traffic, and terrain can affect energy consumption.
• Payload capacity: The load being carried affects the vehicle’s energy requirements.
• Charging infrastructure: The availability and capacity of charging facilities need to match the fleet’s operational requirements.

Are Electric Trucks More Economical for Businesses?

Fleet efficiency can help companies reduce operating costs over the long term. For this reason, electric trucks can offer not only the potential to reduce emissions but also improve cost efficiency when used for suitable routes and operating requirements.

The potential savings from an electric truck should be evaluated based on its total cost of ownership, rather than the purchase price alone. A five-year period can provide a clearer picture of operating costs and the economic feasibility of an electric vehicle.

To learn more about electric vehicle and commercial transportation solutions, explore the innovations offered by INVI Indonesia.

FAQ

Do electric trucks have good resale value?

Resale value is influenced by factors such as the vehicle’s condition, age, battery health, technology, and developments in the electric vehicle market.

How does battery life affect the economic value of an electric truck?

Battery age and condition can affect vehicle performance and value. Proper battery management and maintenance are therefore important parts of TCO.

Does a company need to install its own charging infrastructure?

The need depends on the fleet’s operating patterns. If vehicles are used regularly, a company may consider providing charging facilities at its operational site.

When is the right time for a company to switch to electric trucks?

The right timing depends on factors such as driving distance, routes, payload requirements, energy costs, and charging infrastructure readiness. A TCO analysis can help companies compare the costs of electric and diesel trucks before making a decision.