Total Cost of Ownership Comparison for Different Drivetrains of Private Transport Vehicles

Table of Contents

1 Introduction

2 Literature Review

2.1 Drivetrains of Private Transport Vehicles

2.2 Total Cost of Ownership

2.3 One-time Costs

2.3.1 Investment Costs

2.3.2 Battery Replacement Costs

2.3.3 Resale Value

2.4 Annual Operating Costs

2.4.1 Energy Consumption Costs

2.4.2 Inconvenience Costs

2.4.3 Other Operating costs

3 Design of Total Cost of Ownership Analysis

3.1 Model and Data

3.1.1 TCO Model

3.1.2 Vehicle Sample

3.1.3 Driver Profile

3.2 One-time Costs

3.2.1 Investment Costs

3.2.2 Battery Replacement Costs

3.2.3 Resale Value

3.3 Annual Operating Costs

3.3.1 Energy Consumption Costs

3.3.2 Inconvenience Costs

3.3.3 Other Operating Costs

4 Total Cost of Ownership Estimates

4.1 Base Case Scenario

4.2 Sensitivity Analysis

4.2.1 Driver Profile

4.2.2 Investment Costs

4.2.3 Resale Value

4.2.4 Energy Consumption Costs

4.2.5 Inconvenience Costs

4.2.6 Discount Rate

5 Conclusion

Research Objectives and Topics

This thesis examines the financial competitiveness of various vehicle drivetrains in Germany by applying a consumer-oriented Total Cost of Ownership (TCO) model. The study aims to clarify whether electric vehicles—specifically battery electric, plug-in hybrid, hybrid, and fuel cell electric vehicles—offer a genuine cost advantage over traditional petrol and diesel internal combustion engine vehicles, considering both acquisition and long-term operating expenses.

• Comparative TCO analysis of conventional vs. alternative vehicle drivetrains.
• Evaluation of cost components including investment, battery replacement, resale value, and operating expenses.
• Investigation of the impact of government subsidies and fiscal incentives on TCO.
• Sensitivity analysis regarding driver profiles, energy prices, and discount rates to address market uncertainties.

Excerpt from the Book

Summary of Chapters

1 Introduction: This chapter contextualizes the role of transportation in greenhouse gas emissions and introduces the TCO approach as a method for consumers to make more informed purchasing decisions regarding vehicle drivetrains.

2 Literature Review: This chapter defines the various vehicle drivetrains and the theoretical framework of the TCO approach, covering key cost components such as one-time acquisition costs and ongoing operating expenses.

3 Design of Total Cost of Ownership Analysis: This section presents the mathematical TCO model used in the study, specifies the vehicle sample, and defines the assumptions for the driver profile and cost parameters.

4 Total Cost of Ownership Estimates: This chapter calculates and presents the TCO estimates for the base case scenario and performs extensive sensitivity analyses to determine how variations in key parameters influence the economic competitiveness of different vehicles.

5 Conclusion: This chapter summarizes the research findings, highlights the sensitivity of results to subsidies and driver profiles, and provides suggestions for future research.

Keywords

Total Cost of Ownership, TCO, Electric Vehicles, BEV, PHEV, FCEV, Internal Combustion Engine, Investment Costs, Operating Costs, Sensitivity Analysis, Drivetrains, German Automotive Market, Sustainability, Financial Competitiveness, Vehicle Depreciation

Frequently Asked Questions

What is the core purpose of this Master's thesis?

The thesis evaluates whether electric and alternative fuel vehicles are financially competitive compared to conventional petrol and diesel internal combustion engine vehicles in the German private transport market by calculating their Total Cost of Ownership.

What are the central thematic areas covered in this study?

The study covers drivetrain technology specifications, the TCO methodological framework, consumer cost components (investment, energy, maintenance), and the impact of government subsidies on vehicle purchasing decisions.

What is the primary research question addressed?

The research asks whether modern alternative drivetrains (BEVs, PHEVs, HEVs, FCEVs) provide a financial advantage for private vehicle owners over traditional ICE vehicles when considering the entire holding period.

Which scientific methodologies are applied to perform the analysis?

The author uses a consumer-oriented TCO calculation model, incorporating discounted cash flows, probabilistic modeling for daily driving patterns, and a comprehensive sensitivity analysis to test the robustness of the results against market changes.

What is covered in the main section of the document?

The main section details the TCO model design, provides data on vehicle samples (Small, Medium, Executive), establishes realistic driver profiles based on German Mobility Panel data, and presents detailed cost calculations and scenario variations.

Which keywords best characterize this research?

Key terms include TCO (Total Cost of Ownership), Drivetrains, Electric Mobility (BEV, PHEV, FCEV), German transport market, Sensitivity Analysis, and Investment Costs.

How does the study account for the uncertainty of battery degradation?

The study evaluates battery cycle life and replacement costs using mathematical models derived from literature, ensuring that if a battery's capacity falls below 80% during the holding period, the financial impact of replacement is integrated into the TCO.

Why are subsidies considered a critical factor for the executive vehicle segment?

The study reveals that while small EVs often rely on subsidies to be cost-competitive, the executive segment shows specific sensitivities where high list prices often disqualify models from subsidies, fundamentally altering their financial ranking against conventional luxury vehicles.