Reduced cost of ownership will skew Irish market in direction of electric vehicles, says Nevo.
New cars being bought in the Irish market are skewing towards electric vehicles (BEVs).
Nevo’s new index is aimed at evaluating the discrepancies in pricing across vehicles with different powertrains.
“EVs are no longer the fringe case or the weird option, they are very much becoming the norm”
It reports that the average new price for currently available BEVs is €66,470.49 and that the average price for currently available internal combustion engines (ICEs) in Ireland is in fact higher at €66,713.60.
The average price for a new PHEV (plug-in hybrid electric vehicle) in Ireland is the highest of the three at €70,019.22.
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.
EVs are closing ownership gap
“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,” said Nevo general manager and electric vehicle expert Derek Reilly.
“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”
“In the lead up to world EV day (Friday 9 September) EVs 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.”
Kevin Dowling, chair of the Irish EV Owners Association (IEVOA) added: “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.
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.”
Cost of running electric vehicles is lower
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 Reportconducted 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.
Nevo said 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. It said 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,” Nevo recommended.