EV’s are more expensive to buy, but the gap is closing – NEVO Quarterly Price Index.
Nevo Price Index – September 2022.
Welcome to The Inaugural Quarterly Nevo Price Index for September 2022. This report provides an overview of the latest electric vehicle pricing, running costs, and charging pricing in Ireland. Nevo’s team of in-house data analysts has gathered information on every new ICE (Internal Combustion Engine), PHEV (Plug-in Hybrid Electric Vehicle) and BEV (Battery Electric Vehicle) in order to evaluate the true discrepancies in pricing across vehicles with different powertrains.
General Manager of Nevo and EV Expert Derek Reilly discusses how the Nevo Price Index sheds light on the closing gap between EV’s and ICE’s – “I’m really excited to release the Nevo Price Index. Time and time again we hear about how expensive electric vehicles are vs their combustion engine variants and what we will start to see here is that gap closing. In the lead up to world EV day this Friday September 9th, EV’s are no longer the fringe case or the weird option, they are very much becoming the norm. The report shows how you can save massively with a well-chosen EV tariff and we haven’t even spoken about charging your EV from solar. The team and I are looking forward already to the next Nevo Price Index before the end of the year.”
Which are more expensive to buy – BEVs or ICEs?
Nevo has found that the average new price for currently available BEVs is €66,470.49 and that the average price for currently available ICEs in Ireland is in fact higher at €66,713.60. The average price for a new PHEV in Ireland is the highest of the three at €70,019.22.
Average Pricing – Top 10 Vehicles
In terms of the most popular models sold in each respective powertrain, the top 10 ICEs are priced lower on average at €39,441.14, with the average pricing of the top 10 most popular BEV’s coming in relatively higher at €51,364.05. The average pricing across the top 10 most popular PHEV models is the highest of the three at €70,626.51. These figures serve to shed a spotlight on the relatively similar prices that both ICE and BEV vehicles share in terms of their upfront cost, contradicting many sceptics.
The Market is Skewing towards EV Ownership
Kevin Dowling, Chairman of the Irish EV Owners Association adds that “The data Nevo has put together shows a clear trend where new cars on the market skew favourably towards EVs. At IEVOA, we see most people are committed to moving towards an EV as their next car. Now the choice between EV or ICE is clear given the up-front cost, running costs, and charging fees.
Mr Dowling goes onto note how EV ownership can help households become more sustainable – “Having an EV is one of the lowest hanging fruits for a household to reduce their carbon output alongside active travel and reduction in meat consumption. Producing more consistent public charging infrastructure and encouraging a sustainable second-hand market for individuals and fleets is critical for the government to hit their 1m EV target by 2030.”
Although the prices of new EVs are still relatively high, one must also strongly consider the longer-term running cost savings that can be enjoyed during BEV ownership in comparison to ICE or PHEV ownership. For example, a lack of typical maintenance costs can be avoided if you own a BEV, meaning no oil changes, no swapping in oil filters and no replacing your vehicle’s drive belt.
Prior to restrictions in 2020 on travel and transport during the Covid pandemic which significantly skewed the average distances covered by vehicles, statistics published in the 2019 Transport Omnibus Report conducted by the Central Statistics Office showed that the average journey of a private vehicle in Ireland was 16,352 km. According to Nevo, where drivers of BEVs spend an average of 1c per kilometre, drivers of ICE vehicles spend up to an average of 10c per kilometre. This means that on the domestic EV rate (7.56c per unit), BEV drivers may spend only €195 driving per year. In comparison to this, ICE drivers may spend a considerably higher figure of €1,649 driving per year. This translates to an incredible saving of €1,454 per year of driving that the owner of a BEV can avail of.
How You Can Save on Your Home Charging
And it’s not only those waiting to make the switch that can enjoy these lower costs as a result of electric motoring, as even those who currently own electric vehicles can find ways to save. It is crucial for those who both own an electric vehicle and those who are considering electric motoring to be aware of how varying electricity market rates can impact yearly savings.
Market rates for charging in Ireland can vary between 7.56c per unit all the way up to 71c per unit for more expensive providers. Customers can avail of huge yearly savings by switching to cheaper energy providers. Domestic customers who primarily charge at home and who are not using the best rate available could make a saving of up to €578 per year. One of the easiest ways to avail of such savings can be as simple as switching to an energy provider that includes an EV rate as part of your electricity contract.
Are you looking to make the switch to electric motoring? Click here to browse different EVs, compare your favourite models and learn about the transition to electric motoring on Nevo.ie.