How Much Cheaper is a Chinese EV than a Gasoline Car with Same Budget?
As the New Year approaches, many people are considering their car-buying plans. The question of whether to purchase a traditional gasoline car or switch to a new energy electric vehicle (EV) is on the minds of many. The two differ significantly in terms of daily operating costs. Today, we’ll analyze the annual ownership costs of a gasoline car and an EV with a budget of $25,000 (approximately 180,000 RMB) to give you a clear comparison.
Annual Cost of a Gasoline Car: Significant Pressure
The expenses for a traditional gasoline car mainly come from fuel, maintenance, and insurance. Here is a breakdown of the annual costs (in RMB):
1. Fuel Costs: A Yearly Expense of 7,200 RMB
Fuel is the biggest expense for gasoline cars. Assuming an average monthly fuel cost of 600 RMB (depending on fuel prices and mileage), the annual expense is:
600 RMB × 12 months = 7,200 RMB
It’s worth noting that fuel prices fluctuate significantly, which can further increase costs.
2. Insurance: An Average of 3,500 RMB/Year
Insurance costs for gasoline cars are relatively stable, typically around:
3,500 RMB/year
This expense includes basic coverage to ensure driving safety.
3. Maintenance: Around 1,000 RMB for Two Services
Gasoline cars require regular maintenance, such as oil changes and replacing filters. With two services a year, the estimated cost is:
1,000 RMB/year
4. Parking Fees: At Least 3,600 RMB/Year
Parking fees in urban areas are charged hourly. Assuming an average of 300 RMB per month:
300 RMB × 12 months = 3,600 RMB
For frequent drivers, these costs can be even higher.
5. Highway Tolls: 1,000 RMB for Occasional Road Trips
Many families enjoy occasional road trips. Assuming average toll costs:
1,000 RMB/year
6. Repairs: A Reserve of 500 RMB for Minor Issues
Due to the complex mechanical structure of gasoline cars, minor accidents or component failures are inevitable. Setting aside:
500 RMB/year
Total for Gasoline Cars: 16,800 RMB/Year
Owning a gasoline car comes with significant annual expenses, with fuel costs accounting for the largest share. Over time, rising fuel prices can further increase the financial burden.
Annual Cost of an Electric Car: Clear Savings
EVs, due to their simpler structure and reliance on clean energy, have much lower operating costs compared to gasoline cars. Their expenses primarily focus on electricity and insurance, while maintenance costs are relatively low. Here’s the breakdown:
1. Electricity Costs: Only 3,000 RMB/Year
Compared to fuel, electricity costs are much lower. Assuming an average monthly charging expense of 250 RMB:
250 RMB × 12 months = 3,000 RMB
Additionally, many regions offer discounted electricity rates for nighttime charging, further reducing costs.
2. Insurance: Slightly Higher but More Comprehensive
Due to high-tech features and higher vehicle value, EV insurance costs are slightly higher, averaging:
5,000 RMB/year
This premium provides more comprehensive coverage.
3. Maintenance: Only 400 RMB/Year
With no engine or transmission, EVs don’t require oil changes or similar services, making maintenance costs significantly lower:
400 RMB/year
4. Parking Fees: Same as Gasoline Cars
Parking fees remain the same for both types of vehicles, totaling:
3,600 RMB/year
5. Highway Tolls: 1,000 RMB for Road Trips
Highway tolls for EVs are identical to gasoline cars, averaging:
1,000 RMB/year
6. Repairs: A Reserve of 1,000 RMB
While EV technology is mature, the high-voltage battery and electronic systems may require occasional repairs. A reserve of:
1,000 RMB/year
Total for EVs: 14,000 RMB/Year
Compared to gasoline cars, EVs save 2,800 RMB annually, with major savings in energy and maintenance costs.
Comparison of Annual Costs
| Category | Gasoline Car | Electric Car | Difference |
|---|---|---|---|
| Fuel/Electricity | 7,200 RMB | 3,000 RMB | -4,200 RMB |
| Insurance | 3,500 RMB | 5,000 RMB | +1,500 RMB |
| Maintenance | 1,000 RMB | 400 RMB | -600 RMB |
| Parking Fees | 3,600 RMB | 3,600 RMB | 0 RMB |
| Highway Tolls | 1,000 RMB | 1,000 RMB | 0 RMB |
| Repairs | 500 RMB | 1,000 RMB | +500 RMB |
| Total | 16,800 RMB | 14,000 RMB | -2,800 RMB |
The Added Value of EVs: Not Just About Savings
Beyond direct cost savings, EVs provide several additional benefits, making them the preferred choice for the future:
1. Policy Incentives
China offers extensive support for new energy vehicles, including tax exemptions and local subsidies. In some cities, EVs enjoy exemptions from restrictions like license plate quotas and driving bans, offering unparalleled convenience.
2. Environmental Benefits
EVs use clean energy and emit zero tailpipe emissions, helping reduce air pollution. For environmentally conscious buyers, EVs represent not just a financial choice but a commitment to sustainability.
3. Driving Experience
With high torque output, EVs deliver instant acceleration and a quiet, smooth ride. Advanced intelligent driving assistance systems further enhance the driving experience.
4. Long-term Affordability
As charging infrastructure improves and electricity prices remain stable compared to volatile fuel costs, EVs will only become more economical over time.
Conclusion: EVs are the Smarter Choice
Under the same budget, new energy EVs are not only more environmentally friendly and equipped with advanced technology, but they also have a clear advantage in annual operating costs. If you want to enjoy green travel while benefiting from economic and technological advantages, now is the perfect time to invest in an electric vehicle!
