Energy Storage - 2021 - Cheok - Economic Feasibility of Electric Vehicles A Case Study

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Received: 23 July 2021 Revised: 1 November 2021 Accepted: 4 November 2021
DOI: 10.1002/est2.302
CASE STUDY PAPER
Economic feasibility of electric vehicles: A case study
Quentin Cheok | Nurul Hafizan Husaini | Malik Muhammad Nauman
Faculty of Integrated Technologies,

Universiti Brunei Darussalam, Gadong,
Abstract
Brunei Personal transportation is prevalent in Brunei Darussalam because of the lack
of adequate public transportation. However, Brunei is not immune to the
Correspondence
Quentin Cheok, Faculty of Integrated effects of climate change and as such, has launched a national policy to miti-
Technologies, Universiti Brunei gate the impacts. As electric vehicles presently are very rare to Brunei, this arti-
Darussalam, Jalan Tungku Link, Gadong,
cle seeks to determine the total cost of ownership of internationally popular
BE1410, Brunei.
Email: quentin.cheok@ubd.edu.bn electric vehicles (EVs) and internal combustion engine vehicles (ICEVs) to put
things in perspective for the Brunei market. The methodology investigated
how the total cost of ownership (TCO) is affected by depreciation, interest
repayment, maintenance and repair, fuel costs, taxation, and insurance pre-
miums. We have determined that without any subsidies, predictably TCOs of
EVs are higher than popular ICEVs; however, they are comparable to TCOs of
European premium brands. The Tesla Model 3 has a TCO of USD 760 per
month whereas a Mercedes Benz C200 has a TCO USD800 per month. The
authors have suggested that a 30% subsidy on the showroom price of EVs be
introduced and to improve charging infrastructure as this would be vital to
governmental policy planning as Brunei seeks to increase the ownership of
electric vehicles to 60% by 2035.
KEYWORDS
Brunei, climate change, electric vehicles, total cost of ownership
1 | INTRODUCTION and features have been added to the performance and

esthetics of the car, such as to enhance the performance
Modern automobiles are four-wheeled vehicles that are of the engine, passenger safety features, and the comfort
usually powered by an internal combustion engine (ICE), of the passengers.
where an energy-dense fuel, such as petrol or diesel is the There are costs involved when owning a vehicle such
main source of energy. During the 18th century, a French as the purchase price of the vehicle, the insurance pre-
electrical engineer named Gustave Trouvé invented the mium, repairs and maintenance, fuel cost, interest owed,
first electric vehicle (EV), which had three wheels.1 Over and depreciation. These factors represent the total cost of
the decades, technology in cars has been developing pro- ownership (TCO), which determines the direct cost—the
gressively. Increasingly complex technological controls short-term purchase price and indirect cost—the long-
term cost to operate the vehicle. This shows the total cost
Abbreviations: BDNCCP, Brunei Darussalam National Climate of owning and running a car in a holistic way. Hence, by
Change Policy; DEPS, Department of Economic Planning and Statistics;
calculating its TCO, it will help potential buyers in judg-
EV, electric vehicle; IBT, increasing block tariff; ICE, internal
combustion engine; ICEV, internal combustion engine vehicle; LTD,
ing the long-term value of owning a car.
Land Transport Department; LTMP, Land Transport Master Plan; TCO, Brunei exhibits “extremely high levels of car owner-
total cost of ownership. ship, use and dependency compared internationally”,
Energy Storage. 2022;4:e302. wileyonlinelibrary.com/journal/est2 © 2021 John Wiley & Sons Ltd. 1 of 10
https://doi.org/10.1002/est2.302
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2 of 10 CHEOK ET AL.
according to the Ministry of Communication's Land kampungs (villages), necessitating the need for transpor-
Transport Master Plan 2014 (LTMP).2 In 2020, the Land tation between home and urban centers.8 This also
Transport Department recorded a total of 452 588 vehi- makes it very difficult for the government to plan an effi-
cles3 and the DEPS estimated Brunei's population to be cient public transportation system, electric or otherwise,
at 459 500 in 2020,4 giving Brunei 985 cars per 1000 peo- especially if the interior of the country needed to be con-
ple, the highest car ownership in South East Asia. nected by public transport as the interior of the country
It can be seen in Figure 1 that the numbers of vehicles is not served by roads wide enough for busses.
have been steadily increasing since 2018 with a majority The impact of fossil fuel usage in the transportation
being petrol-engine vehicles (there was no fuel type sector on climate change and air pollution cannot be
breakdown prior to 2018). understated. The emission of CO2 can have serious effects
A recent research study introduced an EV powered by on humans and the environment, causing a rise of 0.70 C
renewably-generated electricity, stored in batteries can in the world's average temperature between 1906 and
significantly reduce emissions by 20% to 47%/km traveled 2005.9
as compared with conventional vehicles.5 Another study Brunei Darussalam, as a net energy exporter,10 is not
indicated that EVs have better air quality-related emis- immune to the effects of climate change. It ranks fourth
sion reduction with an approximately 84% reduction as in the world for the highest CO2 emissions on a metric
compared to internal combustion engine vehicle ton per capita basis at 23.69 metric tons per capita.11
(ICEVs).6 In order to mitigate the effects of climate change, the
Brunei only has busses as the sole means of public country has committed to reducing the energy intensity
transport2 but these busses are not reliable.7 These busses by 63%12 as well as generating at least 30% of all energy
have been in use since 1993 and are now dated. This needs from renewable sources by 203513 as part of the
leaves the general Brunei public solely dependent on pri- Brunei Vision 2035 (Wawasan Brunei 2035) national
vate cars and this has been facilitated by the government development plan. As part of the initiative to increase
by subsidizing fuel (petrol and diesel) and low road taxes renewable energy usage, the Ministry of Energy, Man-
for private vehicles. Keeping in view the small population power and Industry (MEMI) is promoting the increased
and geographical size of Brunei, perhaps it will be more adoption of battery EVs (BEVs), with a target of 60% BEV
cost efficient for the government to keep the status quo use by 2035.13
rather than investing a large amount in public transport. As the world seeks to reduce the impact of climate
This is also supported by the fact that a negative percep- change, alternative means of powering transportation
tion exists among a large portion of the population when (especially personal transportation) are being investi-
it comes to using public busses in Brunei.2 In addition, gated. These include switching from fossil fuel to lower
the popularity of private car ownership has led to people carbon emission fuels and improving fuel economy.14
moving further out of urban center to the outlying small Alternative powertrains being considered include fuel
F I G U R E 1 The number of newly-

registered vehicles in Brunei from 2015 to
20203
CHEOK ET AL. 3 of 10
cell vehicles (FCVs), which can directly convert chemical With the introduction of the Brunei Darussalam
energy into electrical energy15; and BEVs. National Climate Change Policy (BDNCCP), the use of
EVs is being heavily promoted but without the popula-
tion being aware of the benefits and cost of owning EVs.
1.1 | Promoting EVs in Brunei As such, the aim of this article is to determine the feasi-
bility of EV ownership in Brunei Darussalam by compar-
In order to mitigate the effects of climate change, the ing TCO of petrol cars with EVs. In addition, it is hoped
country has committed to reducing the energy intensity that the findings will influence the decisions made to pro-
by 63% as well as generating at least 30% of all energy mote the use of EVs in Brunei Darussalam.
needs from renewable sources by 203513 as part of the
Brunei Vision 2035 (Wawasan Brunei 2035) national
development plan. As part of the initiative to increase 3 | METHODOLOG Y
renewable energy usage, the Ministry of Energy, Man-
power and Industry (MEMI) is promoting the increased A database of ICEV sedan models available for purchase
adoption of BEVs, with a target of 60% EV use by in Brunei Darussalam was created. The comparison will
2035.13 be limited to:
BEVs are a class of vehicles that rely on batteries for
energy storage and motors for motile propulsion. Experi- • Latest sedans and hatchbacks available in Brunei
mental BEVs first made an appearance in 1820, after the Darussalam
discovery of electromagnetism; with further advance- • Petrol engines
ments made after the rechargeable battery and more • Standard trim level
powerful and efficient motors were invented in the • Same brand of tire used to replace OEM tires
1870s.16 A cumulative total of more than 4 million BEVs • 5-year time period
have been sold, up to 2019, with China pushing for elec-
trification of the car.17 The selected vehicles were of base trim with standard
Regardless of the powertrain, costs have always been equipment only. The TCO of each model was calculated
associated with the owning and maintenance of any vehi- based on fuel, insurance premiums, maintenance,
cle. Features such as lithium ion batteries, regenerative repairs, and depreciation as seen in Figure 2. This infor-
braking, engine stop-start as well as a novel transmission mation was obtained from car dealerships, insurance
system18 contribute to higher manufacturing costs of agents, and the Department of Economic Planning and
BEVs than ICEVs.19 Many countries offer subsidies or Statistics (DEPS). In Brunei Darussalam, each brand of
reduced taxes to increase the adoption of BEVs.20 Brunei car is distributed by one official agent; however, used cars
Darussalam is in a unique case where there are no subsi- may be sold by any agent. As such, if a potential owner
dies or tax reductions for the purchase of BEVs; however, desires a certain brand of car, it will most likely be avail-
the electricity cost is priced below market rates.10 able at one agent only. This removes the possibility of a
TCO calculations can determine whether subsidies certain make and model being sold at different prices
and lower running costs can offset the price premium of which is prevalent in neighboring markets. However, this
BEVs. These costs are vital in helping decide which type
of vehicle to buy.21 The TCO can be separated into the
direct cost (purchase price) and indirect cost (cost to keep
the vehicle in a safe and operable state).
2 | AIMS AND OBJECTIVES
Several countries in the South East Asian region have

included the promotion and proliferation of EV usage as
part of their renewable energy policies.22
Data from the Land Transport Department of the
Ministry of Transport and Info-Communications, Brunei
Darussalam revealed that EVs have the smallest market
share in Brunei Darussalam, with less than 1% share in
2019.23 FIGURE 2 Total cost of ownership
trend is likely to change with increasing competition and 3.3 | Insurance

as more brands enter the Brunei market.
As there are minimal modern EV brands distributed Insurance premiums depend on vehicle- and driver-
in Brunei Darussalam at the moment, information on related factors. Vehicle-related factors may include per-
EVs were obtained from US-based websites as a reference formance, safety ratings, weight, and so on whereas
market. driver-related factors may include gender, age, marital
status, personal driving record, and so on. In order to
remove as much uncertainty as possible, the study shall
3.1 | Total cost of ownership use the same physical characteristics when soliciting
insurance quotations: male, 30-year-old with no acci-
The TCO is used to provide consumers with a realistic dents, and living in the capital city, Bandar Seri
approximation of the direct costs involved when purchas- Begawan.
ing a vehicle for use. The period for which TCO is calcu-
lated in this study is 5 years. The TCO is calculated using
Equation (1)24: 3.4 | Interest
TCO ¼ D þ IC þ FRðDÞ þ I þ RT þ MR ð1Þ The majority of cars in Brunei Darussalam are purchased
using financing with an average annual interest charged
where D is depreciation, IC is the insurance cost, FR is at 4% with no down payment.
the fuel rate, D is total distance driven, I is the interest The total interest is calculated using Equation (2)
charged by the bank, RT is road tax, and MR is the main- below24:
tenance and repair costs.
PRT
I¼ ð2Þ
100
3.2 | Showroom price
where I is total interest owed, P is principle borrowed,
Showrooms in Brunei Darussalam display two prices: the R is interest rate %, and T is the financing Term in years.
showroom price (SRP) and the on-the-road (OTR) price. The monthly repayments are calculated using Equa-
The showroom price is the cost price of the car that has tion (3)24:
been approved by the DEPS and includes all applicable

import taxes and customs duties levied upon the vehicle. PRT
MR ¼ þP N ð3Þ
The OTR price is the final price payable by the customer 100
to the car dealer and it includes a registration fee, road
tax, license plate, and insurance. SRP is taken as the pur- where P is Principle borrowed, R is the interest rate %,
chase price of the ICEV models for this study. T is the financing term in years and N is the number of
SRP for EVs have been obtained from the manufac- months for repayment.
turer's suggested retail price (MSRP) on the automakers'
websites with 30% added on top to account for import
taxes, shipping, and profit for the dealer which is stan- 3.5 | Maintenance and repair costs
dard practice in the Brunei market.
For the purposes of calculating the electricity con- All new cars sold in Brunei Darussalam come with a war-
sumption of EVs, an average rate of USD0.044 per kWh25 ranty lasting between 2 and 5 years, depending on the
will be used (Table 1). brand. The scheduled maintenance costs are based upon
10 000 km intervals; this service includes an engine oil
and oil filter change. Unscheduled maintenance costs are
TABLE 1 Electricity tariff for households in Brunei
also included in the study and this involves the replace-
Darussalam
ment of parts that undergo wear and tear such as wiper
Electricity usage (kWh) Price/unit (USD) blades, headlamp and indicator bulbs, brake pads, spark
0001-0600 0.0072 plugs, as well as tires. The cost of replacing tires will
0601-2000 0.058 include wheel balancing and alignment. Table 2 shows
the parts of the ICEV that typically need to be replaced
2001-4000 0.072
after being driven a certain distance. Similar parts that
4001 and above 0.087
need to be replaced on EVs include tires, cabin air filters.
TABLE 2 Parts of the internal combustion engine vehicle (ICEV) that typically need replacements
First year Second year Fifth year

(15 000 km) (30 000 km) Third year (45 000 km) Fourth year (60 000 km) (75 000 km)
None Air filter, cabin filter, Battery (starter), rear Air filter, cabin filter, front brake Transmission oil,
front brake pads brake pads, tires pads, spark plugs, coolant, brake fuel filter
oil, drive belt
TABLE 3 Electric vehicles (EV) license rates in Malaysia

3.6 | Road tax
Electric motor Base rate
All vehicles in Brunei Darussalam need to be registered output (W) (USD) Progressive rate (USD)
with the Land Transport Department (LTD) and in doing 50 000 and below 4.81 N/A
so, pay a vehicle license also known as road tax. This is 50 001-60 000 10.58 N/A
based on engine displacement and costs approximately 60 001-70 000 13.47 N/A
USD1.62 per 100 mL of engine displacement.
70 001-80 000 17.31 N/A
Currently, Brunei does not have any policy/legislation
80 001-90 000 38.48 0.077 for every additional
for the implementation of any taxes and levies related to
50 W above 80 000 W
EVs; however, neighboring Malaysia charges EVs based
on the electric motor output as can be seen in Table 3 90 001-100 000 53.87 0.06 for every additional
50 W above 90 000 W
and that is adopted as a reference policy for the purpose
of this research. It is worth mentioning that Brunei 100 001-125 000 65.89 0.12 for every additional
50 W above 100 000 W
Darussalam may implement a completely different taxa-
tion regulation as it moves toward realization of EV 125 001-150 000 126.01 0.24 for every additional
50 W above 125 000 W
imports.
Above 150 000 246.24 0.32 for every additional
50 W above 150 000 W
4 | R ES U L T S A N D D I S C U S S I O N
The most popular ICEV brands bought in Brunei TCO. The time-old adage that expensive cars cost more to
Darussalam come from Japan and South Korea. As such, run is proven true. The day-to-day running costs such as
the authors have selected 10 of the most popular ICEV fuel costs are very low, especially for EVs; amounting to
models available (Table 4). These models tend to have less than 2% of TCO for the 5-year period. Again, this is
four-cylinders with between 1.2 and 2.0 L in capacity and due to the generous subsidies provided by the govern-
are exclusively front-wheel drive except for the German ment. However, it must be noted that the values used in
brands. It can be observed that the sub-compact sedan is this study are manufacturer claims and may not reflect
the most popular segment. real-world experience.
There were several challenges when it came to esti- In general, maintenance and repair costs are lower
mating the TCO especially when it came to insurance for EVs than ICEVs, both as a percentage of TCO and as
and depreciation costs. These costs were variable as they absolute values. This would undoubtedly be enticing to
depended on several external factors outside the control potential EV buyers.
of the study, such as brand recognition, driver experi- The TCO for ICEVs are lower than those of EVs; this
ence, and the used car market. The costs that were easiest is mainly due in part to higher depreciation and interest
to determine were the fuel costs (petrol and electricity) as costs, which are linked to the higher price premium of
these were fixed regardless of the market value due to the EVs. In other markets, this price premium is offset by the
subsidies in place. higher cost of petrol but in the Brunei market, the offset
The EVs in Table 5 were chosen for their suitability to is not very significant.
the Brunei market in terms of brand recognition as well The amount of money saved by charging in compari-
as vehicle type. The chosen EVs have similar designs to son to fueling with petrol is large, even at subsidized rates
popular ICEVs and the authors believe this will entice for both and this may play an important factor in the
the local market toward these EVs. mindset of the EV customer.
Regardless of the powertrain, it is observed that In order to incentivize the purchase of EVs in Brunei,
depreciation and interest contribute the most toward it is suggested that the relevant authorities offer subsidies
6 of 10
TABLE 4 Showroom prices (USD), horsepower and fuel consumption figures as well as TCO of popular cars in Brunei Darussalam
Hyundai
Toyota Suzuki BMW 318i Kia Cerato Mercedes-Benz Accent Honda Kia Optima Nissan Mitsubishi
Vios 1.5 L Swift 1.2 L Sport 2.0 L EX 1.6 L C200 2.0 L 1.4 L GLS City 1.5 L EX 2.0 L Almera 1.5 L Attrage 1.2 L
SRP $16 164 $16 341 $44 647 $18 418 $53 644 $14 898 $16 987 $26 828 $23 498 $15 646
Horsepower 105 83 158 128 184 108 120 157 99 78
(hp)
Fuel 12.5 10.5 15.9 13.2 15.8 11.0 13.3 11.5 11.8 12.7
economya
(km/L)
Depreciation $8151.06 (47%) $8240.23 (47.7%) $22 514.64 $9287.89 (48.9%) $27 051.70 (56.3%) $7512.68 (45.1%) $8566.18 (46.2%) $13 528.59 $11 849.48 $7798.43 (46.5%)
(54.0%) (52.2%) (51.6%)
Insurance $1600.61 (9.2%) $1338.54 (7.8%) $3565.09 (8.5%) $1503.00 (7.9%) $4151.78 (8.6%) $1236.74 (7.4%) $1659.89 (9.0%) $1835.69 (7.1%) $1776.41 (7.7%) $1500.44 (8.9%)
cost
Fuel cost $2289 (13.2%) $2714.29 (15.7%) $1792.45 (4.3%) $2166.00 (11.4%) $1803.80 (3.8%) $2602.74 (15.6%) $2137.51 (11.5%) $2482.82 (9.6%) $2421.41 (10.5%) $2237.05 (13.3%)
Interest $3232.75 (18.6%) $3268.12 (18.9%) $8929.42 (21.4%) $3683.62 (19.4%) $10 728.84 (22.3%) $2979.57 (17.9%) $3397.39 (18.3%) $5365.51 (20.7%) $4699.57 (20.5%) $3092.90 (18.4%)
Road tax $122.01 (0.7%) $97.56 (0.6%) $162.59 (0.4%) $129.67 (0.7%) $162.27 (0.3%) $111.49 (0.7%) $121.92 (0.7%) $162.84 (0.6%) $122.09 (0.5%) $97.23 (0.6%)
Maintenance $1961.54 (11.3%) $1611.59 (9.3%) $4738.61 (11.4%) $2204.52 (11.6%) $4116.66 (8.6%) $2206.53 (13.3%) $2642.53 (14.3%) $2536.23 (9.8%) $2091.30 (9.1%) $2060.51 (12.3%)
and repairs
TCO $17 357.1 $17 270.32 $41 702.81 $18 976.70 $48 015.05 $16 649.74 $18 525.43 $25 911.68 $22 960.26 $16 786.56
TCO/month $289.29 $287.84 $713.64 $316.28 $800.25 $277.50 $308.76 $431.86 $382.67 $279.78
TCO/km $0.231 $0.230 $0.571 $0.253 $0.640 $0.222 $0.247 $0.345 $0.306 $0.224
Note: Numbers in () indicate the percentage that particular attribute contributes to the TCO.
Abbreviations: SRP, showroom price; TCO, total cost of ownership.
a
Manufacturer, combined.
CHEOK ET AL.
TABLE 5 Showroom price (USD), horsepower and fuel consumption figures as well as TCO of popular EVs
Tesla Model 3
standard plus Nissan Leaf BMW i3 Volkswagen e-Golf Hyundai Ioniq Electric
a
SRP $51 987 $41 080 $57 785 $41 464 $42 959
Horsepower (hp) 283 147 168 134 134
Fuel economyb in MPGe 140 124 124 126 133
Rangec (km) 421 270 245 198 272
Depreciation $26 216.00 (57.5%) $20 715.82 (61.6%) $29 139.82 (63.6%) $20 909.21 (62.1%) $21 663.11 (63.1%)
Insurance cost $3279.09 (7.2%) $2589.68 (7.7%) $3404.95 (7.4%) $2411.37 (7.2%) $2191.39 (6.4%)
Electricity cost $489.13 (1.1%) $619.57 (1.8%) $551.09 (1.2%) $554.35 (1.6%) $521.74 (1.5%)
Interest $10 397.40 (22.8%) $8216.00 (24.4%) $11 557.00 (25.2%) $8292.70 (24.6%) $8591.70 (25.0%)
Road tax $3225.85 (7.1%) $451.69 (1.3%) $632.85 (1.4%) $328.80 (1.0%) $347.83 (1.0%)
Maintenance and repairs $2006.75 (4.4%) $1042.00 (3.1%) $553.00 (1.2%) $1432 (4.3%) $1019.00 (3.0%)
TCO $45 614.21 $33 634.76 $45 838.70 $33 661.43 $34 334.76
TCO/month $760 $560.58 $763.98 $561.02 $572.25
TCO/km $0.608 $0.448 $0.611 $0.449 $0.458
Abbreviations: EV, electric vehicles; SRP, showroom price; TCO, total cost of ownership.
a
SRP for EVs includes the estimated 30% dealership mark-up on MSRP.
b
Manufacturer, combined.
c
Manufacturer claimed.
F I G U R E 3 The effects of subsidies

on the total cost of ownership of selected
Electric vehicles (EVs)
on the SRP. Without any subsidies, the TCO of EVs is The TCO:SRP ratios as shown in Table 6 show that
outside the financial reach of the average Bruneian all ICEVs cost nearly as much or more than their initial
buyer. A proposed model of subsidies for EVs is shown in purchase cost to own, maintain, and finally dispose
Figure 3, where 10%, 20%, and 30% subsidies are of. This is mainly due to depreciation, bank interest, and
modeled. maintenance and repair costs. The TCO:SRP ratio of EVs
The effect of subsidies is clearly observed in decreas- as seen in Table 7 are lower due to lower maintenance
ing the TCO of EVs to a point where they are comparable and repair costs along with lower fuel costs.
to traditional ICEVs, such as the Kia Optima as can be Road taxes for ICEVs make up an insignificant amount
seen in Figure 4. This makes the purchase of an EV more of the TCOs, unlike those of EVs. This is to enable the per-
financially affordable. sonal mobility of the population via extensive road
F I G U R E 4 A comparison of the effects of subsidies on EV TCO against ICEV TCO. EV, electric vehicles; ICEV, internal combustion
engine vehicle; TCO, total cost of ownership
TABLE 6 Ratio of TCO:SRP of ICEVs
BMW Kia Kia

Toyota Suzuki 318i Cerato Mercedes- Hyundai Honda Optima Nissan Mitsubishi
Vios Swift Sport EX Benz Accent City EX Almera Attrage
1.5 L 1.2 L 2.0 L 1.6 L C200 2.0 L 1.4 L GLS 1.5 L 2.0 L 1.5 L 1.2 L
TCO:SRP 107% 106% 93% 103% 90% 112% 109% 97% 98% 107%
Abbreviations: ICEV, internal combustion engine vehicle; SRP, showroom price; TCO, total cost of ownership.
TABLE 7 Ratio of TCO:SRP of EVs
Tesla model 3 standard plus Nissan Leaf BMW i3 Volkswagen e-Golf Hyundai Ioniq Electric
TCO:SRP 88% 82% 79% 82% 80%
Abbreviations: EV, electric vehicles; SRP, showroom price; TCO, total cost of ownership.
networks. In this study, the authors assumed that were vehicles can be a useful tool to keep the potential cus-
Brunei to adopt a similar taxation system as Malaysia, the tomer informed of the long-term costs involved in keep-
purchase cost of the EV and its road tax may discourage ing the intended vehicle serviceable and safe. This was
wide adoption of EVs in Brunei Darussalam. achieved with the calculation of TCOs for EV and ICEV
ownership in Brunei. The TCOs of popular EVs are com-
parable to TCOs of premium German brands suggesting
5 | CONCLUSION AND P OLICY that were the Brunei government to incentivizes the sale
I M P L I C A T IO N S of EVs, that EVs may be marketed as zero net emission
alternatives to luxury models.
The goal of this study was to compare the TCO between In the current context, the costs of owning an EV are
ICEVs and EVs for the Brunei market. The TCO of higher than most ICEVs; in some cases, nearly three
times greater. This limits the proliferation of EVs in the Quentin Cheok: supervision, writing, reviewing and
local market. However, subsidies have been proven to be editing, supervision, and methodology.
very enticing for customers to buy an EV. For instance,
the subsidies for petrol could be channeled toward EVs. DA TA AVAI LA BI LI TY S T ATE ME NT
As shown in Section 4, subsidies contribute greatly Data available on request from the authors The data that
toward lowering the TCO of EVs to levels deemed afford- support the findings of this study are available from the
able and as such, should be encouraged if Brunei were to corresponding author upon reasonable request.
accomplish the EV adoption goals set out in BDNCCP. In
addition, an affordable EV road tax policy modeled on ORCID
the current ICEV system would be beneficial. These are Quentin Cheok https://orcid.org/0000-0002-8513-5064
strategies that need to be given proper attention by the Malik Muhammad Nauman https://orcid.org/0000-
relevant authorities. 0003-3489-6792
A possible method of making the costs of an EV more
attractive to customers may be to introduce leasing plans RE FER EN CES
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An additional policy suggestion is to make TCO be Limited; 2014. http://www.mtic.gov.bn/Resources/
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CASE STUDY PAPER

Economic feasibility of electric vehicles: A case study

Quentin Cheok | Nurul Hafizan Husaini | Malik Muhammad Nauman

Faculty of Integrated Technologies,

1 | INTRODUCTION and features have been added to the performance and

F I G U R E 1 The number of newly-

2 | AIMS AND OBJECTIVES

Several countries in the South East Asian region have

trend is likely to change with increasing competition and 3.3 | Insurance

First year Second year Fifth year

TABLE 3 Electric vehicles (EV) license rates in Malaysia

F I G U R E 3 The effects of subsidies

TABLE 6 Ratio of TCO:SRP of ICEVs

BMW Kia Kia

TABLE 7 Ratio of TCO:SRP of EVs

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