Electric car is sustainable, but not always economical – 07/23/2023 – Market

Despite the sustainable appeal, an electric car is not always the best option for the driver looking for economy, according to experts interviewed by the Sheet.

They point out that electric cars are much cheaper to supply than gasoline or ethanol models, but are more expensive in other aspects, such as the purchase of the vehicle itself and insurance.

Another factor is the level of use: if the electric car is used intensively, it will generate greater fuel economy, but it may lose resale value, since high mileage reduces the price of a used car.

In the comparison between two compact models —as is the case of a Renault Kwid—, the electric version would spend only 20% on fuel than its gasoline or ethanol counterpart. The survey was carried out by the consultancy Bright at the request of the report. The company does not reveal the models used in the comparison as a matter of strategy.

According to another study by ABVE (Associação Brasileira do Veículo Elétrico), on a trip from Avenida Rio Branco, in downtown Rio de Janeiro, to Avenida Paulista, in São Paulo, an electric car that travels 7 km per kWh would spend R$53 on energy, while a gasoline vehicle that runs 10 km per liter would require R$245 to be fueled.

However, if the vehicle is large, such as SUVs, the final savings will be lower. In the same comparison, estimating a use of 60,000 kilometers, the electric model will have a higher TCO than the conventional one, as it will have faster depreciation and more expenses with insurance, IPVA and maintenance.

The insurance for an electric car is twice as high as for the combustion version. “If I’m just measuring the fuel, the electric car makes sense. We’re not considering the cost of acquisition, car insurance, depreciation”, says Murilo Briganti, director of products at Bright Consulting.

“The premium electric car is more of a market niche and a status of life. The consumer is wanting to have this car because it is the vanguard of technology”, continues Briganti.

There are some tax advantages linked to the acquisition of an electric vehicle, such as the exemption from IPVA (Tax on Motor Vehicle Ownership) granted in the Federal District, for example. In the state of São Paulo, the exemption is not adopted, but the Treasury Department told the Sheet studying possible incentives. In the city of São Paulo, electric vehicles are exempt from car rotation.

Other factors to be considered are that energy expenditure may vary according to the tariff flag in force in the period and that cities still have few charging stations.

“The best option for the Brazilian market today is the flex-fuel hybrid car, which is powered both by gasoline or ethanol and by electricity”, evaluates Milad Kalume, director of business development at consultancy Jato.

Marketing executive Rodrigo de Almeida, 51, has had an electric car since 2016. Owner of a Chevrolet Bolt, he has had two BMW i3s — all powered by electricity.

After moving to Brasília in 2020, Almeida has already made more than 20 trips from the federal capital to São Paulo. The first nine times, he needed to stay overnight in Uberlândia (MG) to recharge. Today, he claims that he has noticed the opening of more stations for electric vehicles.

“For me, the electric car has already become a very interesting option for saving money, because I’ve driven more than 50,000 kilometers on the road and I’ve spent more than R$20,000 on fuel,” he says.

Despite this, Almeida claims that the discussion about the pre-salt layer and the risks of oil spills were the real reasons for his interest in buying an electric vehicle. He is an autonomous diver and one of the founders of Abravei (Brazilian Association of Innovative Electric Vehicle Owners).

“In Brazil, a car is expensive. A normal user will not buy an electric one because of the economy”, says Almeida. He points to sustainability, performance, technology and status as the main incentives for purchasing this type of vehicle.

According to Bright, while a flex-fuel car in Brazil emits around 105 grams of carbon dioxide equivalent per kilometer, an electric car produces only 21 grams per kilometer. The calculation takes into account the production and transport of fuel, the gases released by the exhaust and the source of electricity, in the case of vehicles that use it.

ABVE recorded, in the first half of this year, the registration of 32,200 light electrified vehicles (which includes hybrid and 100% electric cars) in Brazil —a growth of 58% compared to the same period last year. June was the third best month of the entire historical series and, according to the entity, the numbers indicate that the market may exceed the 70 thousand registrations foreseen until the end of the year.