Life cycle environmental and cost analysis of SUVs: a Saudi Arabia case study

• The environmental and cost performance of conventional and hybrid SUVs are assessed. • Hybrid SUVs have approximately 19.5 % lower GHG emissions than conventional SUVs. • Hybrid SUVs exhibit slightly higher TCO (around 6 % more) compared to conventional SUVs. • Depreciation costs significantly influence the TCO of both vehicle types. • Halving or removing the HEVs sales tax will significantly boost its competitiveness. • Hybrid SUVs as a near-term decarbonization strategy in line with Saudi Arabia's Vision 2030. This study is conducted within the framework of the Vision 2030 agenda to diversify the Kingdom of Saudia Arabia (KSA) economy and promote sustainable technologies. The study specifically examines the life cycle performance of hybrid and conventional Sport Utility Vehicles (SUVs). It employed a globally relevant Life Cycle Assessment (LCA) and Total Cost of Ownership (TCO) methods to comprehensively evaluate the environmental and cost performance of these vehicles from a life cycle perspective. The findings indicate that hybrid SUVs could reduce GHG emissions by 19.5 % compared to conventional SUVs in KSA despite the extra carbon emissions from producing their electric powertrain components. However, despite their superior fuel efficiency, hybrid SUVs exhibit a slightly higher TCO, around 6 % more than their conventional counterparts. Notably, depreciation costs emerge as a significant factor influencing the TCO of these vehicles, underscoring the necessity for cost-competitive financing options and measures to reduce the initial purchase cost of hybrid vehicles. We recommend policymakers consider promoting hybrid SUVs as a near-term decarbonization strategy, thus laying the groundwork for a sustainable transport system. However, intensifying efforts to achieve purchase cost parity with conventional vehicles (e.g., halving or removing the vehicle sales tax for HEVs) will accelerate market uptake.