BYD stars as cost of owning an EV now on par with ICE cars – even without rooftop solar

Queenslanders may not be allowed to charge their electric vehicles (EVs) from their rooftop solar panels, but even without home solar they are a cheaper option to internal combustion (ICE) vehicles.

More cars and government incentives, such as an income-tested $6000 subsidy on some EVs and $3000 for everyone else, have put a number of vehicles on par with comparable ICE cars, says the RACQ in its annual report into vehicle operating costs.

The news is likely to make people with an eye on their cost of living take notice, says RACQ motoring editor Ged Bulmer.

“The big change that we’ve seen this year in the operating costs, which we do annually, is the emergence of more affordable EVs, predominantly Chinese made in the likes of BYD and GWM, that has shifted the balance,” he told TheDriven.

“This year for the first time we’re seeing EVs emerging in a very competitive light against their international combustion counterparts.

“The standout for us was the BYD Atto 3 which came in as the third most affordable vehicle to own and operate.”

The rankings: Chinese cars are most affordable

It’s not all EVs, but in a number of categories they are punching above their weight when costs of buying, owning and operating a car are added up. 

In all cases, the only factor bumping EVs lower down the ranks was the up front sticker price which meant the overall cost was higher – but because of lower registration and fuel costs, not much higher than significantly cheaper ICE vehicles. 

These are how they ranked:

• Small cars: Of 12 vehicles, the GWM Ora Standard Range Hatch came in as third most affordable car, the Nissan Leaf Standard Hatch came in ninth and the Cupra Born Hatch 5 seat came in at eleventh.
• Medium cars: Of 10 cars, the Tesla Model 3 RWD Sedan Standard Range is fifth most affordable, followed directly by the Polestar 2 Single Motor Sedan Standard Range. The Hyundai Ionic 6 Dynamiq Sedan had the highest total expenses of this category, but this was because it is $15,000 more expensive than the priciest ICE car in the group. Its annual expenses were only $1000 higher.
• Small SUVs: This was a big category at 15 vehicles, in which the MG ZS Excite RWD Standard Range came in fifth. With a $37,990 sticker price it alongside the other two EVs was among the most expensive cars in the list, yet the fuel efficiency rating and dramatically lower servicing costs than any of the other cars made it comparatively affordable. The other two EVs in this category, the Mitsubishi Eclipse Cross ES PHEV Hatch and the Kia Niro S Pure Electric Hatch, had the highest expenses but were also significantly more expensive than all other cars in this section.
• Medium SUVs: Bulmer says the BYD Atto 3 Hatch Standard Range is where EVs are proving to be most competition, as it came in third of 13 vehicles for operating costs despite being the fourth most expensive to buy. The other EVs in this category were the Mitsubishi Outlander ES PHEV Wagon, Tesla Model Y RWD Hatch, and Hyundai Ionic 5 Dynamiq Hatch which were all more than $16,000 more expensive than the next priciest on the list (the BYD Atto).
• Large SUVs: Of 11 cars, the Kia EV6 Air RWD Hatch came in eighth.
• Light commercial 4×2: The workhorse category that includes the Toyota Hilux is still underserved by EVs. The only EV in this category was the LDV eT60 Dual Cab 2WD Ute, which was more than $46,000 more expensive to buy than its nearest rivals, the Hilux and Ford Ranger. That price and interest rate costs made it almost $10,000 a year more expensive to run each year, or $48,000 over a five year loan term. 

Apples with apples

When comparing costs, fuel is the only factor that is not the same for an ICE vehicle versus an EV.

Liquid fuel prices were averaged over metro and regional fuel stations, and RACQ technical boffins averaged electricity tariffs out to 30.23 cents/kWh for all EV charging – which doesn’t reflect the benefits of charging at home with rooftop solar.

Even at this electricity tariff fuel costs for the most expensive EV, the LDV eT60 Dual Cab 2WD Ute, were dramatically lower than for all of its much cheaper rivals in the light commercial category. 

Bulmer says anyone able to use their own home solar will be able to bring down the ongoing cost of their vehicle even further. 

“We’re trying to do apples with apples and it’s obviously difficult when you’re averaging fuel costs and electricity costs. Even people who are charging at the wee hours are going to be getting a better rate than that.”

Each car is assumed to be wholly financed with a five-year loan – ICE cars at a 6.99 per cent rate and EVs at a lower RACQ green car loan rate of 5.59 per cent – but EVs also attract the government’s subsidy which brings down the headline price.

Registration and insurance varies for each category – although in Queensland registration costs for EVs are lower than for ICE vehicles.

Each vehicle is assumed to get a new set of tyres every year and servicing costs are taken into account (again, these tend to be lower for EVs). 

EVs make mark in cost of living

The news that owning an EV can be cheaper on an annual basis might be the information people need to make the jump from ICE cars, Bulmer says. 

“My expectation is that EVs will only become more attractive to people. Let’s face it, everyone is facing cost of living pressure at the moment, and it appears some EVs are getting to the point where they’re actually more cost effective to own and operate – admittedly with a healthy Queensland government subsidy. I think the hip pocket will talk to people,” he says. 

“The big change will come with affordability. Range will be a factor for regional Queenslanders and charging infrastructure, all of those things have to continue to improve, which they have been doing.”

He says interest in EVs is rising rapidly amongst the RACQ membership, but there are still some holdouts who aren’t happy. 

Bulmer says there is a section of the organisation’s membership which are irked by the fact that EVs attract a government subsidy – and that there is a lot of information being put out about them.