Renault Clarifies EV Ownership Cost Parity Projections

Total five-year ownership costs for electric vehicles will equal those of piston-engine models by 2020 for B-segment cars and by 2025 for C-segment cars, Renault SA predicts.

But the French carmaker believes the initial purchase price of EVs will continue to be higher than non-electrified vehicles for the foreseeable future. Previous reports suggesting that the sticker prices of the two types of vehicles would converge by as early as 2020 misquoted Gilles Normand, who heads Renault’s EV program, a company spokesperson tells Autocar.

Normand made his comments earlier this month during a panel discussion at the Future of the Car Summit in London. He was referring to the total cost of ownership rather than purchase price, according to the spokesperson.

Total cost of ownership encompasses purchase price, fuel, service, maintenance/repair and insurance. Renault notes that it currently costs 57-86 pence (74 cents to $1.12) per mile to operate the Zoe EV (pictured) and 39-56 pence (51-73 cents) to operate a similarly sized Clio with a conventional engine over a three-year period.

Renault expects EV prices to fall as volumes increase and smaller, more-efficient batteries are introduced. Conversely, the cost of traditional cars is projected to increase to meet tougher emissions/fuel economy standards.