As electric vehicles (EV) become increasingly visible on Philippine roads, many consumers are asking whether it still makes financial sense to buy a traditional internal combustion engine vehicle (ICEV), a hybrid electric vehicle (HEV), a plug-in hybrid electric vehicle (PHEV), or a battery electric vehicle (BEV).
The answer depends on what factors you value. Environmental advocates emphasize lower emissions. BEV enthusiasts point to lower operating costs. HEV owners appreciate improved fuel economy without worrying about charging infrastructure. ICEV owners often highlight lower purchase prices and familiar technology.
To examine the issue objectively, let us temporarily set aside personal preferences and look strictly at the numbers using net present value (NPV) analysis.
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For this analysis, we assume four brand-new vehicles with similar size, comfort, safety features and electronic equipment. We assume a 10-year ownership period, annual mileage of 15,000 kilometers, gasoline priced at P78 per liter today growing at 4-percent per annum (pa) and electricity priced at P15 per kilowatt-hour.FEATURED STORIES
