Electric Vehicle Total Cost of Ownership Is More Than A Fuel Story

The debate between electric vehicles and gasoline cars is usually framed as a simple question of fuel savings. That is only part of the story. In reality, the electric vehicle total cost of ownership depends on purchase price, taxes, energy costs, maintenance, depreciation, resale value, and even the possibility of battery replacement. In other words, the cheaper car to buy is not always the cheaper car to keep.

That is exactly why the latest Jakarta Globe report matters. In Indonesia, electric and hybrid vehicle sales surged 69.4% in the first half of 2026, reaching 117,000 units and accounting for 26.8% of total passenger-car sales. Consumers are clearly warming to electrified cars, but the ownership math remains more complicated than the headlines suggest.

Why The Electric Vehicle Total Cost Of Ownership Can Be Lower

The strongest argument for EVs has always been operating cost. According to the Jakarta Globe article, economist Riyanto Umar of LPEM UI said the day-to-day running cost of a BEV is lower than an ICEV, especially with current fuel prices. He noted that charging an electric vehicle generally costs less than buying gasoline for the same distance, and EVs usually need less routine maintenance because they have fewer mechanical parts that wear out.

That claim is backed by broader research. The U.S. Department of Energy says scheduled maintenance costs for a light-duty battery-electric vehicle are 6.1 cents per mile, compared with 10.1 cents per mile for a conventional internal combustion engine vehicle. The same source explains that EVs do not need engine oil, timing belts, oxygen sensors, spark plugs, and several other maintenance items common in gasoline cars.

The International Energy Agency also reports that electric cars often have a lower total cost of ownership than ICE cars over the vehicle lifetime because of reduced fuel and maintenance expenses. It adds that battery pack prices fell more than 25% globally in 2024 compared with 2023, which helped lower electric car manufacturing costs and improved affordability.

The Hidden Costs Behind The Ownership Equation

Still, the electric vehicle total cost of ownership is not defined by fuel savings alone. The Jakarta Globe article highlights three major variables that can change the result over a 10-year period: depreciation, battery health, and replacement cost. Yannes Martinus Pasaribu of the Bandung Institute of Technology warned that the calculation cannot rely only on electricity savings or lower maintenance.

Depreciation is one of the biggest concerns. The article cites OLXmobbi, which says EV depreciation in Indonesia can reach 50% after three to four years of use. By contrast, gasoline cars usually depreciate more gradually. That matters because resale value can wipe out years of operating savings if the vehicle loses value too quickly.

Battery replacement is another major variable. The U.S. Department of Energy’s Alternative Fuels Data Center says many manufacturers offer 8-year or 100,000-mile battery warranties, but if a battery must be replaced outside warranty, it can be a significant expense. The same source says manufacturers typically do not publish replacement battery pricing, which makes this cost hard for buyers to model in advance.

That uncertainty is one reason the electric vehicle total cost of ownership can look excellent on paper and still feel risky to some buyers. A car that saves money on fuel may still be a poor financial choice if it depreciates quickly or faces an expensive out-of-warranty battery repair later on.

Why The 10-Year Time Horizon Changes Everything

A 10-year ownership window is long enough for the economics to shift several times. In the first few years, the buyer usually feels the impact of the sticker price. After that, fuel savings and maintenance savings begin to compound. Over a longer period, however, resale value and battery condition become more important. That is why the same EV can be a smart purchase for one driver and a weak investment for another.

The Jakarta Globe article quotes Riyanto Umar as saying BEV prices are now much closer to ICEV prices while fuel prices remain relatively high, which means the total cost of ownership can be on par between the two. That is an important shift. It suggests the market is moving away from a simple “EVs are always more expensive” assumption and toward a more nuanced decision based on usage patterns.

The IEA’s 2026 EV findings also show the market is evolving quickly. Its latest figures show electric vehicle sales and stock data through 2025, confirming that EV adoption is now a major global transport trend rather than a niche experiment. In parallel, the IEA says average battery prices declined by 8% in 2025, helped by manufacturing efficiency, chemistry improvements, and competition.

Who Benefits Most From Electric Vehicle Total Cost Of Ownership Savings

For high-mileage drivers, the case for EVs is usually stronger. The more a vehicle is driven, the faster lower charging costs and reduced maintenance can offset the higher purchase price. That is why EVs often make more sense for corporate fleets, commercial operators, and drivers with long commutes.

For short-distance users, the picture can look different. A small gasoline car may still be the practical choice if the buyer wants lower upfront cost, predictable resale value, and simple refueling access. The Jakarta Globe article makes this point clearly: EVs are not automatically the most economical choice for every consumer.

Charging access matters too. An EV owner with dependable home charging will usually enjoy a smoother financial experience than someone who must rely on public charging for every trip. That is because convenience, time cost, and charging availability shape how much value a buyer actually gets from the vehicle over time. While those factors are harder to quantify, they still belong in the electric vehicle total cost of ownership discussion.

What Indonesian Buyers Should Watch Before Deciding

Indonesia’s EV market is expanding quickly, but buyers should still compare cars using a total cost lens rather than a monthly-payment lens. A low down payment can hide a higher long-term burden, while a more expensive EV can become cheaper over the years if it saves enough on energy and maintenance. That is the central lesson from the Jakarta Globe report.

A practical buyer should look at five things before signing a contract: purchase price, expected annual mileage, home or workplace charging access, warranty coverage, and projected resale value. If battery coverage is strong and the car will be driven often, the electric vehicle total cost of ownership may tilt decisively in favor of the EV. If not, a gasoline car may still be the safer financial bet.

This is also where technology trends matter. The IEA says battery prices continued to fall in 2025, and it noted that LFP batteries were more than 40% cheaper on average than NMC alternatives per kWh. As battery technologies improve and prices decline, the economics of EV ownership should keep strengthening over time.

The Bottom Line On EVs Versus Gasoline Cars

There is no universal winner in the electric vehicle total cost of ownership debate. EVs usually win on operating cost, often win on maintenance, and may become increasingly competitive on purchase price as battery costs fall. Gasoline cars, meanwhile, can still win on upfront affordability and resale stability, especially for buyers with low annual mileage.

For most buyers, the smartest approach is not to ask which technology is cheaper in theory. The better question is which vehicle is cheaper for your driving pattern, charging setup, and ownership horizon. That is where the electric vehicle total cost of ownership framework becomes genuinely useful. It turns a lifestyle purchase into a financial calculation, and that is the only way to compare EVs and gasoline cars fairly.