Developing a Total Cost of Ownership Model for Semi-Automated, Automated and Electric Vehicles

Technological changes in the automobile industry accelerate the development of alternative fuel vehicles and automated driving. These changes affect the vehicle fleet mix in urban areas, and affect the total cost of ownership (TCO) per vehicle technology. The goal of this paper is to expand the traditional TCO model to enable the comparison of vehicle technologies. To achieve this goal, a set of indicators is identified to build the TCO model and assess three-vehicle technologies: A Hybrid Electric Vehicle (HEV), an Electric Vehicle (EV) and an Automated Electric Vehicle (AEV). Two levels of automation are used for the AEV: the level three (L3) or “conditional driving automation” and level five (L5) “full automation”. The study applies the developed method using data for the French market. The assessment shows that while the EV is the most economical vehicle when considering the TCO, the HEV is more economical during the first two years. The high purchase cost of the AEV L3 does not compensate during the vehicle lifetime compared to the other two technologies (i.e., HEV and EV), although it profits from lower maintenance and time costs. The TCO for the AEV L5 at the end of its lifetime is lower than the initial purchase value, revealing the social benefits of full automation. The HEV approximates the TCO of the AEV L3 at the end of its lifetime, however, the higher expected resale value of the HEV makes it attractive, in the short-term, for consumers that desire lower purchase cost and higher resale value. © 2022, The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd.