Green cars aren’t that clean in SA

Source: Data from CARmag

The table includes only the cheapest variant of the different models offered by each manufacturer. For instance, Land Rover offers 18 different variants with hybrid power plants in three model ranges. The Range Rover Vogue hybrid is priced at just above R2.4 million and the most expensive hybrid Range Rover at over R4.5 million.

While proponents of electric and hybrid cars complain about high import taxes – a host of countries subsidise greener cars – the fact is that the prices are very high relative to petrol and diesel cars.

Porsche launched a pure electric car to supplement its earlier hybrids. The cheapest Taycan sells for between R2.5 million and the most expensive for nearly R4 million.

It defies logic that the top of the range Taycan is the second most expensive car offered by Porsche in SA, just R72 000 less than the most desirable Porsche – the ionic 911 Turbo Cabriolet S.

The price comparison holds true for more mundane cars as well. The beautiful BMW i3 is available in pure electric and hybrid versions, priced from R721 000 to R874 000. In comparison, a BMW 118i with a petrol engine is R200 000 cheaper than the little electric car.

The high prices of electric and hybrid cars increase the total cost of ownership by a fair margin due to higher interest on a larger loan, more depreciation and higher insurance premiums.

The R200 000 higher price tag on a BMW i3, compared to a lot of her equally desirable sisters, pushes up the monthly instalment by some R3 400 and insurance would be R400 higher. Assuming 10% depreciation in the first year, the BMW i3 would cost its owner R5 467 per month more than the BMW 118i with a petrol engine – before taking it for a drive.

Can lower operating costs perhaps make up the difference?

Petrol price vs electricity tariffs

It is easy to think that electric cars cost nothing to run because drivers don’t need to pay for petrol. The cost of electricity to recharge the car is often hidden in the household’s electricity account but should be taken into account if running cost is a consideration in deciding whether to buy an electric or a hybrid car.

Comparing the energy cost of the electric BMW i3 with a (more or less similar) diesel and petrol car with the same badge is enlightening.

According to BMW, the i3 uses 13.1-kilowatt-hours (kWh) worth of electricity per 100km, while the smaller petrol models burn 7.1 litres of fuel per 100km and the diesel 4.8 litres per 100km.

While fuel prices are known, electricity tariffs are dependent on a few variables. An example of the cost of electricity from Johannesburg residents in a document from a Johannesburg City Council meeting reflects a few prices.

Prepaid customers pay R1.52 per kWh for electricity only and account customers pay R1.45 per unit, excluding basic charges. The example used by the council’s mayoral committee to decide electricity prices also calculated the total price per kWh including basic charges.

Electricity then increases to as much as R3.04 per kWh, the tariff accountants would like to plug into the calculations of running an electric car.

However, one can also argue that households already pay whatever basic charge or availability fee municipalities charge and that it should be seen as a sunk cost. Based on this assumption, an electric car is much cheaper to run than their noisier counterparts.

Source: Manufacturers’ data, Johannesburg rates, national petrol prices

Unfortunately, the savings are not enough to make up the higher fixed costs of buying an electric car that is some R200 000 more expensive than a comparable car with an internal combustion engine.

On average, motorists drive around 30 000km per annum in SA – a number generally used in the motor industry – equal to 2 500km per month.

An electric car is the cheapest to run at R485 worth of electricity per month and a petrol model the most expensive at nearly R2 600 per month.

Even after this massive saving in fuel, the total cost of owning an electric car is still more than R3 000 per month higher.

The total monthly cost of ownership

Source: Calculated from manufacturer’s data

Electric cars aren’t that clean in SA

But the kick in the stomach for environmentalists is that electric cars and hybrids are not as environmentally friendly in SA, even if people are willing to pay a premium to help our planet.

Eskom’s latest annual report discloses that its coal-fired power stations emit 1 04kg of carbon dioxide (CO2) for every kWh of electricity it sells.

Thus, our little BMW i3 indirectly generates 13.5kg of CO2 emissions for every 100km it travels. There is a lot of smaller car whose emissions are in the same region as this.

The petrol BMW 118i produces much less CO2 (10.4kg) and the 2-litre diesel engines in many of BMW’s other models produce around 13.5kg CO2 emissions per 100km.

Most medium cars produce much more harmful gases, in the range of 16kg to 25kg per 100km.

The cleanest cars are the cute Fiat 500 models – selling for between R220 000 and R300 000 and producing emissions of less than 9kg per 100km.

At the other end of the scale are the big and heavy SUVs with large engines, pumping out CO2 at a rate of 25kg to 30kg per 100km.

Taking only ownership cost and emissions into account, it makes sense to dump the large expensive vehicles and to drive as little as possible. But not necessarily an electric or hybrid model.

From a purely environmental view, it would be far more beneficial to get Eskom to reduce its emissions. A small change at a power station would make a bigger difference than the estimated 1 000 electric cars on SA’s roads.

Culled from Moneyweb