DUBLIN – (BUSINESS WIRE) – The report “Analysis of the Life Cycle and Total Cost of Ownership (TCO) of Heavy, Medium and Light Commercial Vehicles in Europe” has been added ResearchAndMarkets.com Offer.
During the 15-year life of a truck, the total cost of ownership for battery-electric trucks is lowest, followed by natural gas and diesel drives in the light, medium and heavy segments. As the truck gets older, the lower the mileage, the higher the maintenance costs, leading to higher total cost of ownership (TCO) per mile.
Mileage traveled is an important factor for battery electric trucks to achieve TCO parity with diesel and natural gas trucks, with higher kilometers traveled reaching total cost of ownership parity faster. Battery electrics also depreciate faster than diesel and natural gas vehicles. However, during their lifespan, they tend to have a higher residual value when the battery is changed.
Acquisition costs are highest for battery electric vehicles due to the high battery prices, which account for more than 30% of vehicle costs for light and medium-duty trucks and more than 55% for heavy-duty trucks. For all drive trains, however, a large part of the acquisition costs of around 60% are borne by the first owner over the entire service life of the vehicle, since the truck loses 50%, 30% and 50% of its value after 5 years from diesel, natural gas and battery-electric ones Trucks.
With fewer moving parts, battery electric trucks with tires and brakes have the lowest maintenance costs, which is the largest part of the cost as they are replaced on a regular basis. However, on diesel and natural gas trucks, in addition to regular maintenance and parts replacement, there is an engine and transmission repair that is usually done around the 8th year during the 2nd ownership and the most paid for maintenance per mile basis.
With diesel and natural gas prices rising and the fuel efficiency of these trucks declining as they age, fuel costs are only likely to rise in the future, with a large proportion of these costs likely to be borne by the 2nd and 3rd owner. On the other hand, it is expected that electricity prices will remain stable in the future and therefore will not show a significant difference over the life of the truck.
Alternative powertrain solutions that can lower operating costs through lower maintenance and fuel costs will receive more traction in the future. Despite the current higher initial cost of capital, these solutions will help fleets lower the total cost of ownership and lower the total cost of ownership over the long term. With the high cost of electric trucks to purchase, OEMs need to find newer ways to make truck ownership easier and smoother through leasing or mileage ownership.
Alternative powertrain solutions, especially battery-electric ones, are seen as disruptive technologies that are emerging to replace traditional internal combustion engines. Not only are these solutions cleaner and safer, they also help reduce operating costs through lower maintenance and fuel costs. These disruptive solutions will only be more popular in the future. The biggest challenge with EV adoption is the initial upfront cost, mainly due to the high price of batteries, which can discourage potential buyers. However, OEMs must address this challenge by offering newer ownership models like leasing or ownership per mile.
It is imperative that the entire trucking ecosystem is on the same page in terms of alternative technologies (e.g. battery electric). OEMs need to look beyond the product and offer solutions by promoting the TCO benefits of electric vehicles. Fleets need to shift their focus from short-term profitability to long-term sustainability
Main topics covered:
1. Strategic imperatives
-
Why is it getting harder and harder to grow?
-
The strategic imperative
-
The Influence of the Strategic Imperative on the Truck Market
-
Growth opportunities fuel the growth pipeline engine
2. Summary
-
Main results
-
Key metrics – HD Truck
-
Key figures – MD Truck
-
Key figures – LD Truck
-
Trends that will affect total cost of ownership in the future
3. Scope and segments
-
Key questions that this study will answer
-
Truck market segmentation
4. Heavy duty vehicle
-
TCO assumptions – HD Truck
-
TCO components – Diesel HD Truck
-
Owner-related TCO – Diesel HD Truck
-
Maintenance costs – Diesel HD Truck
-
Fuel costs – Diesel HD Truck
-
Acquisition costs – Diesel HD Truck
-
TCO components – HD natural gas truck
-
Owner-related TCO – natural gas HD truck
-
Maintenance costs – natural gas HD truck
-
Fuel Costs – Natural Gas HD Truck
-
Acquisition costs – natural gas HD truck
-
TCO Components – Battery Electric Heavy Duty Truck
-
Owner-related TCO – Battery Electric HD Truck
-
Maintenance costs – Battery Electric HD Truck
-
Electricity Costs – Battery Electric Heavy Duty Truck
-
Acquisition cost – battery electric heavy-duty truck
-
Insurance, Driver Wages, Fees and Permits HD Truck
-
Total Cost of Ownership – Powertrain Comparison, HD Truck
-
TCO cost components – powertrain comparison, HD truck
-
Truck residual value – powertrain comparison, HD trucks
5. Medium utility vehicle
6. Light commercial vehicle
7. Universe for growth opportunities
-
Growth Opportunity: Lower Total Cost of Ownership to Accelerate Alternative Powertrain Adoption
8. List of Abbreviations
9. Next steps
Please visit https://www.researchandmarkets.com/r/puulqm for more information on this report
contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For EST office hours, call 1-917-300-0470
For US / CAN Toll Free, call 1-800-526-8630
For GMT office hours, call + 353-1-416-8900
Copyright © acrofan / Business Wire All rights reserved
