Total Cost of Ownership of Electric Vehicles: A Synthesis of Critical Factors

ABSTRACT Global warming caused by fossil fuel consumption has highlighted electric vehicles (EVs) as a key strategy to decarbonize transportation. However, adoption faces challenges such as high costs, limited range, and insufficient charging infrastructure. This study evaluates total cost of ownership (TCO) as a tool to assess EV feasibility and guide policy initiatives for their adoption. TCO considers all lifecycle expenses, enabling comparisons with internal combustion engine vehicles. A systematic review using PRISMA guidelines analysed 30 studies from Web of Science and Scopus. Key factors influencing TCO include battery costs, purchase price, maintenance, and depreciation. Results showed TCO varies across countries due to differences in policies, taxes, and incentives. While EVs may have higher upfront costs, lower operating expenses and supportive policies can enhance their competitiveness. Comprehensive TCO models with regional data and real‐world usage are essential. Future research should refine these models for enhanced precision and relevance.