Cost-benefit analysis for transitioning Thailand’s passenger cars to electric drives

An Erratum to this article was published on September 30, 2025. https://dergipark.org.tr/en/pub/jes/article/1779557

Abstract

The transportation sector significantly contributes to global CO2 emissions, thereby there exists a requirement for the sustainable alternatives. The work compares the total cost of ownership (TCO) of sport utility vehicles with different powertrain technologies, including internal combustion engine vehicles (ICEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs), in the Thai market. Using a detailed TCO model, the study considers purchase price, depreciation, fuel/electricity costs, maintenance, insurance, annual tax, and government incentives. Data from literature and market reports assess the financial viability of each vehicle type, structured into four comparison groups based on model and popularity. Findings indicate that while ICEVs have lower initial costs, BEVs and HEVs achieve competitive TCO with subsidies and better battery technology. Results show significant energy and maintenance savings for EVs over their lifecycle compared to ICEVs. However, high initial costs and inadequate charging infrastructure hinder EV adoption in Thailand. The study concludes that targeted policies and incentives are essential to promote EV adoption, reduce emissions, and advance sustainable transportation. These insights guide consumers and policymakers in supporting Thailand’s electric mobility transition.

Keywords

• Clean energy
• Electrification
• Electric vehicle
• Policy recommendation
• Total cost of ownership

References

1. [1] Energy Policy and Planning Office (EPPO). Energy Statistics of Thailand 2023. Bangkok: Energy Policy and Planning Office; 2023.
2. [2] Achariyaviriya W, Suttakul P, Fongsamootr T, Mona Y, Phuphisith S, Tippayawong KY. The social cost of carbon of different automotive powertrains: A comparative case study of Thailand. Energy Reports 2023;9:1144-1151. DOI: 10.1016/j.egyr.2023.03.035.
3. [3] Achariyaviriya W, Suttakul P, Phuphisith S, Mona Y, Wanison R, Phermkorn P. Potential reductions of CO2 emissions from the transition to electric vehicles: Thailand's scenarios towards 2030. Energy Reports 2023;9:124-130. DOI: 10.1016/j.egyr.2023.08.073.
4. [4] Suttakul P, Fongsamootr T, Wongsapai W, Mona Y, Poolsawat K. Energy consumptions and CO2 emissions of different powertrains under real-world driving with various route characteristics. Energy Reports 2022;8:554-561. DOI: https://doi.org/10.1016/j.egyr.2022.05.216.
5. [5] Janpoom K, Suttakul P, Achariyaviriya W, Fongsamootr T, Katongtung T, Tippayawong N. Investigating the influential factors in real-world energy consumption of battery electric vehicles. Energy Reports 2023;9:316-320. DOI: https://doi.org/10.1016/j.egyr.2023.10.012.
6. [6] Ayetor GK, Opoku R, Sekyere CKK, Agyei-Agyeman A, Deyegbe GR. The cost of a transition to electric vehicles in Africa: A case study of Ghana. Case Studies on Transport Policy 2022;10(1):388-395. DOI: https://doi.org/10.1016/j.cstp.2021.12.018.
7. [7] Muangjai P, Wongsapai W, Bunchuaidee R, Tridech N, Ritkrerkkrai C, Damrongsak D, Bhuridej O. Estimation of marginal abatement subsidization cost of renewable energy for power generation in Thailand. Energy Reports 2022;8:528-535. DOI: https://doi.org/10.1016/j.egyr.2022.05.197.
8. [8] Ghosh S, Sarkar B. Examining the cost-effectiveness of electric vehicle policy in India. Transportation Planning and Technology 2022;45(8):629-642. DOI: 10.1080/03081060.2022.2132948.

9. [9] Achariyaviriya W, Wongsapai W, Janpoom K, Katongtung T, Mona Y, Tippayawong N, Suttakul P. Estimating Energy Consumption of Battery Electric Vehicles Using Vehicle Sensor Data and Machine Learning Approaches. Energies 2023;16(17):6351. DOI: 10.3390/en16176351.
10. [10] Hagman J, Ritzén S, Stier JJ, Susilo Y. Total cost of ownership and its potential implications for battery electric vehicle diffusion. Research in Transportation Business & Management 2016;18:11-17. DOI: https://doi.org/10.1016/j.rtbm.2016.01.003.
11. [11] Kongsakpaibul C. Feasibility study of hybrid vehicle for energy saving in Thailand. Master's thesis, Thammasat University, Bangkok, Thailand; 2008.
12. [12] Thammasiri K. The economic and financial cost-benefit analysis of vehicle adoption: hybrid vehicle vs electric vehicle. Master's thesis, Thammasat University, Bangkok, Thailand; 2014.
13. [13] Aussawachattongchai E. A feasible study of possibility in use electric vehicles (EV) for compensation to petroleum vehicles: a case study of Thammasat University Rangsit-Campus. Master's thesis, Thammasat University, Bangkok, Thailand; 2013.
14. [14] Gonzalez-Salazar M, Kormazos G, Jienwatcharamongkhol V. Assessing the economic and environmental impacts of battery leasing and selling models for electric vehicle fleets: A study on customer and company implications. Journal of Cleaner Production 2023;422:138356. DOI: https://doi.org/10.1016/j.jclepro.2023.138356.
15. [15] Dimanchev E, Fleten S-E, MacKenzie D, Korpås M. Accelerating electric vehicle charging investments: A real options approach to policy design. Energy Policy 2023;181:113703. DOI: https://doi.org/10.1016/j.enpol.2023.113703.
16. [16] Arowolo W, Perez Y. Rapid decarbonisation of Paris, Lyon and Marseille's power, transport and building sectors by coupling rooftop solar PV and electric vehicles. Energy for Sustainable Development 2023;74:196-214. DOI: https://doi.org/10.1016/j.esd.2023.04.002.
17. [17] Bubeck S, Tomaschek J, Fahl U. Perspectives of electric mobility: Total cost of ownership of electric vehicles in Germany. Transport Policy 2016;50:63-77. DOI: https://doi.org/10.1016/j.tranpol.2016.05.012.
18. [18] Suttakul P, Wongsapai W, Fongsamootr T, Mona Y, Poolsawat K. Total cost of ownership of internal combustion engine and electric vehicles: A real-world comparison for the case of Thailand. Energy Reports 2022;8:545-553. DOI: https://doi.org/10.1016/j.egyr.2022.05.213.
19. [19] Palmer K, Tate JE, Wadud Z, Nellthorp J. Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan. Applied Energy 2018;209:108-119. DOI: https://doi.org/10.1016/j.apenergy.2017.10.089.
20. [20] Scorrano M, Danielis R, Giansoldati M. Dissecting the total cost of ownership of fully electric cars in Italy: The impact of annual distance travelled, home charging and urban driving. Research in Transportation Economics 2020;80:100799. DOI: https://doi.org/10.1016/j.retrec.2019.100799.
21. [21] Ouyang D, Zhou S, Ou X. The total cost of electric vehicle ownership: A consumer-oriented study of China's post-subsidy era. Energy Policy 2021;149:112023. DOI: https://doi.org/10.1016/j.enpol.2020.112023.
22. [22] Office of Industrial Economics (OIE). Eco Sticker. Bangkok: The Office of Industrial Economics; 2023.
23. [23] Department of Land Transport (DLT). Transport Statistics Report 2023. Bangkok: Department of Land Transport; 2023.
24. [24] Danielis R, Giansoldati M, Rotaris L. A probabilistic total cost of ownership model to evaluate the current and future prospects of electric cars uptake in Italy. Energy Policy 2018;119:268-281. DOI: https://doi.org/10.1016/j.enpol.2018.04.024.
25. [25] Siripotjanakul C. The assessment of total cost of ownership of electric vehicle. Master's thesis, Thammasat University, Bangkok, Thailand; 2016.
26. [26] Siam Commercial Bank (SCB). Auto Hire Purchase Interest Rate. Bangkok: The Siam Commercial Bank Public Company Limited; 2024.
27. [27] Energy Policy and Planning Office (EPPO). Retail price of petroleum products in Bangkok. Bangkok: Energy Policy and Planning Office; 2024.
28. [28] Provincial Electricity Authority (PEA). Electricity Tariffs. Bangkok: Provincial Electricity Authority; 2023.
29. [29] Toyota Motor Thailand (TMT). Toyota customer service. Bangkok: Toyota Motor Thailand Company Limited; 2024.
30. [30] MG Sales (Thailand) Company Limited. Periodical maintenance table. Bangkok: MG Sales (Thailand) Company Limited; 2024.
31. [31] Honda Automobile Thailand Company Limited (HATC). Periodical maintenance. Bangkok: Honda Automobile Thailand Company Limited; 2024.
32. [32] Rêver Automotive Company Limited (BYD). Maintenance schedule for BYD Atto3. Bangkok: Rêver Automotive Company Limited; 2024.
33. [33] Thai General Insurance Association (TGIA). Compulsory motor insurance according to the Protection for Motor Vehicle Accident Victims Act 1992. Bangkok: Thai General Insurance Association; 1992.
34. [34] Allianz Ayudhya General Insurance Public Company Limited (ALLIANZ). Motor Insurance Type 1. Bangkok: Allianz Ayudhya General Insurance Public Company Limited; 2024.
35. [35] Department of Land Transport (DLT). Account tariffs according to the Motor Vehicle Act 1979. Bangkok: Department of Land Transport; 1979.
36. [36] Hackbarth A, Madlener R. Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany. Transportation Research Part A: Policy and Practice 2016;85:89-111. DOI: https://doi.org/10.1016/j.tra.2015.12.005.
37. [37] Limmeechokchai B. The study on determination of appropriate discount rates for evaluation of GHG mitigation measures. Energy Policy 2020;139:111301. DOI: https://doi.org/10.1016/j.enpol.2020.111301.