Life Cycle Cost Assessment of Electric, Hybrid, and Conventional Vehicles in Bangladesh: A Comparative Analysis

The automobile industry is shifting from internal combustion engine vehicles (ICEVs) to hybrid electric vehicles (HEVs) or electric vehicles (EVs) extremely fast. Our calculation regarding the most popular private car brand in Bangladesh, Toyota, shows that the life cycle cost (LCC) of a Toyota BZ3 (EV), USD 43,409, is more expensive than a Toyota Aqua (HEV) and Toyota Prius (HEV), but cheaper than a Toyota Axio (ICEV) and Toyota Allion (ICEV). It has been found that about a 25% reduction in the acquisition cost of a Toyota BZ3 would lower its LCC to below others. EVs can be a good choice for those who travel a lot. Changes in electricity prices have little effect upon the LCC of EVs. With the expected decline in the annual price for batteries, which is between 6 and 9%, and the improvement of their capacities, EVs will be more competitive with other vehicles by 2030 or even earlier. EVs will dominate the market since demand for alternative fuel-powered vehicles is growing due to their environmental and economic advantages.