Destroying the myth that Electric Vehicles are more expensive and less efficient an Electric Scooter Operational Cost of Ownership Comparison

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1 Destroying the myth that Electric Vehicles are more expensive and less efficient an Electric Scooter Operational Cost of Ownership Comparison It is no longer a function of if but when and how we in South Africa are forced to seriously introduce the use of low carbon emission electric vehicles. Increasing Eco-compliance pressure is being applied to UK/Euro companies to the extent where companies such as UK based Tesco, ( our equivalent of Pick & Pay), are moving to electric vehicle delivery fleets as part their compliance strategy, and applying stringent measurement criteria on the carbon footprint of their suppliers (including South African) and products. The introduction of electric scooters to reduce pollution and noise in the inner cities has been widely adopted not only in European cities but in Asian countries as well, the largest being China. Regulations have been introduced banning petrol scooters in many inner city areas and incentives in Europe have been adopted to promote the adoption of electric, non-pollution/noise emission vehicles. The attitude in South Africa is I ll wait until I have to comply or if it s Green it will cost you more, and be less efficient The reality is that the time is upon us as the rapidly rising costs of fuel and day to day living expenses, many people looking for alternative, viable and cost effective forms of commuting and transport. To some extent this is being addressed by the rapid adoption of petrol scooters in SA. However a cost analysis will show that apart from the smaller capital outlay versus a car or motorbike, the actual costs are not what they at first appear, and there is a far more viable option if one considers the more cost-effective electric scooter as an alternative. The economic and eco-environmental benefits of electric scooters over petrol scooters can be positioned as follows: Fuel cost of 5c/km versus 26c/km per day Monthly operational cost of 28c/km versus 75c/km Total monthly operational cost of R331 versus R646 to R896 Annual operational cost of R4122 versus R7909 to R year total cost of ownership of R30158 at 70c/km versus up to R52780 at R1.22/km Zero noise pollution Zero exhaust emissions Reliability no gearbox/transmission/belts/pistons/valves/heads /exhaust/chains/shafts etc 1

2 To assist customers in understanding what the real cost/impact is of adopting one of our Wispa electro scooters versus a petrol scooter we have provided an operational cost of ownership comparison and how you can benefit over a 2 to 3 year period. The following Table 1 is a comparison of the Daily Operational Fuel Costs: Vehicle kw rating Max speed kms L or kwh/100 kms L/1 Kms L or kwh Cost per litre or kwh Fuel cost Fuel cost/km km/h Dist Consumption Consumption Consumed R/L or c/kwh R R Vespa LX R 7.82 R R 0.22 Loncin LX150- T R 7.82 R 8.99 R 0.18 Vuka ML R 7.82 R R 0.26 (Lead Acid) R 0.45 R 3.01 R 0.06 (Lithium) R 0.45 R 2.34 R 0.05 As can be seen from above on a straight fuel cost comparison the cheapest runner is the Wispa 3000W Lithium model at 5c/km versus the other extreme of the Vuka at 26c/km. (Ref page 5 for assumptions in building the comparison) In the following monthly operational cost comparison, again based on an average of 50 kms per day as above, we are taking into account insurance, fuel costs and maintenance. The maintenance costs are those based on the individual manufacturers requirements taking into account 1 st year warranty requirements, service periods and parts and labour as provided by the approved and accredited dealers. In the case of the there are no maintenance requirements other than replacing disc brake pads and tyres according to wear and tear, (included with the others as well). However an allowance has been made for the replacement of a Lead Acid battery set over the 3 year comparison (as deep cycle batteries are a consumable in the life cycle of an electric vehicle) and this cost has been worked back into the yearly and monthly operational costs (to be fair). With the Lithium version this is NOT the case as the battery set has a six times longer life span. Table 2: Monthly Operational Running Costs Vehicle Days used Fuel cost Insurance Maintenance kms Total Cost Total Cost per month per month per month per month per month per month per km Vespa LX R R R R R 0.68 Loncin LX150- T6 24 R R R R R 0.54 Vuka ML R R R R R 0.75 (Lead Acid) 24 R R R R R 0.35 (Lithium) 24 R R R R R

3 As we can see from the above table the electric scooters have the lowest monthly operational costs with the Lithium version at 28c/km versus the highest being the Vuka at 75c/km. Using the same information derived in the monthly model we can then look at the economic benefits of the operational cost factors over an annual period, again comparing conventional with electric and including fuel costs, maintenance costs, insurance costs, tyre costs etc Table 3: Annual Operational Running Costs Vehicle Purchase Annual Annual Annual Annual kms Total Op Cost Op Cost Price inc VAT Licensing Insurance Maint Fuel per year Per Year per km Vespa LX150 R R R 3707 R 2867 R R R 0.69 Loncin LX150- T6 R R R 875 R 4295 R R R 0.55 Vuka ML150 R R R 903 R 6135 R R R 0.76 (Lead Acid) R R R 1148 R 2968 R R R 0.36 (Lithium) R R R 1805 R 1495 R R R 0.29 Again we have included the costs of the replacement battery set for the Wispa 3000 (Lead Acid) electric scooter in this operational cost view with the annual op cost of the (Lithium) at R /annum versus the Vuka and the Vespa at R10903 and R9943 respectively. In understanding the real operating costs involved with the various types of scooters we can now draw a 3 year + cost of ownership comparison to see if the higher capital cost/investment is justified and whether the operational savings achieved are sufficient. Table 4: Three year plus Total Expenditure Comparison Vehicle Purchase Total Total Total Total kms Total Cost per Price Licensing Insurance Maint Fuel 3 Yrs Expenditure km Vespa LX150 R R R R 8600 R 9660 R R R 1.92 Loncin LX150-T6 R R R 2625 R R 7769 R R R 0.85 Vuka ML150 R R R 2709 R R R R R 1.03 (Lead Acid) R R R 3442 R 8904 R 2599 R R R 0.74 (Lithium) R R R 5415 R 4484 R 2017 R R R 0.88 Although the above table is not a Cost of Ownership comparison it does show the overall expenditure view over a 3 year period, this time with the electric scooter (lead acid version) taking the lead in 74c/km. 3

4 However this is not the final story as the total Cost of ownership takes into consideration your depreciation on the asset, being most easily measured by means of estimated market value in the 4 th year of ownership. Factors affecting this would be, in the case of the electric scooters, the remaining lifespan of the existing batteries, in the case of petrol scooters the remaining lifespan of the motor and transmission and in the case of the Vespa this is pretty good. In this comparison we are not loading the model with NPV calcs or finance charges. Table 5: Three Year Total Cost of ownership Vehicle Purchase Resale Total Total Total Total Total kms Total Cost of Price Value Deprec Lic Insur Maint Fuel 3 Yrs Ownership Vespa LX150 R R R R 450 R R R R R 1.22 Loncin LX150 R R R R 450 R R R R R 0.78 Vuka ML150 R R 2000 R R 450 R 2709 R R R R 0.99 (Lead Acid) R R 4000 R R 450 R 3442 R 8904 R R R 0.64 (Lithium) R R 8000 R R 450 R 5415 R 4484 R R R 0.70 Cost per km Again we can see from the table that due to the very low operating costs of the Electric scooters they once again come out tops in our real world SA TCO, in the case of the Lithium version at R30,157 or 70c/km. Why would you choose the Lithium model over the cheaper lead acid model?? primarily because the Lithium model has a range of approx 100kms between charging versus kms and charges in 2-3 hours versus 6-10 hours. As with the Chinese made petrol scooters coming to the end of their motor life (if they have been driven sensibly and not hammered by the kids in the weekends) we have allowed for the factor of another battery pack replacement being needed for the lead acid version in the following 16 months and therefore discounted the resale value accordingly. In the case of the lithium model it would be about halfway thru it s battery lifespan given all the assumptions made. There is some debate as to whether the Chinese made scooter motors will even get to kms without a full rebuild/replacement but again given the assumptions and the responsible nature of use we will assume they can. We have therefore not loaded the model with the cost penalty. 4

5 This real world comparison model makes the following assumptions to create a realistic picture: You are not necessarily trying to replace your existing car but merely wanting a more cost effective form of commuting during the week and a bit of use in the weekend (pop down to the shops etc) and would like the vehicle to last at least 3-4 years before selling it The average commuting distance per day is approx 50kms and you will want to use the vehicle a minimum of 24 days of the month You live in an urban or city electricity tariff zone You purchase petrol at coastal rates (Highveld consumers pay a higher rate) You will pay an annual license fee of approx R150 and a annual insurance fee of approx 7% of the vehicle capital cost You will comply with the manufacturers recommended service intervals and warranty requirements Tyre wear is averaged as follows: rear tyre replaced every 7000 kms and front tyre replaced every kms approx and one set of front and rear disc pads per annum Driving style dictates greatly to the wear and tear on a vehicle as well as the fuel consumption and most manufacturers qualify their consumption at an average speed e.g. For the purpose of the comparison we will assume a conservative and safe commuter driving style without daily attempts at the sound barrier or vesperado antics and therefore the manufacturers recommended service costs and parts should be applicable! Other than Vespas, few of the petrol models compared take too kindly to abuse. In making our comparison we have selected vehicles available in SA with similar styling and performance as well as initial capital purchase values. We have also included the entry level Vespa being the defacto world make that all models are compared to, especially in Europe. The is the top of the range electric scooter registered as an L3 motorbike as opposed to a L1 moped. It has an average consumption measured in watt hrs/km versus so many Litres/km and is charged from a standard domestic outlet plug point. We have included both the Lead Acid battery version and the Lithium battery version, the difference being that the cheaper Lead Acid version uses the traditional type batteries as found in golf carts (but smaller) whereas the Lithium battery version uses the latest technology batteries as found in Laptops and Cell phones (but bigger) Summary What is fairly apparent is that the so called cheaper scooter brands have a lower initial capital outlay but given a 3 to 4 year ownership period will end up costing you more whereas the electric scooters do not have the same maintenance overhead burden on them and therefore the Wispa 3000W electric scooters are a more viable and cost-effective alternative over this period. In this case going Green is not costing you more!!! 5

6 Model Motor Battery Speed Distance Brake: (front/rear) (lead acid version) 3.0 kwatt Brushless DC60V,38AH deep cycle gel lead acid 75Kmh + (depending on rider weight and size) Up to 80Kms (varies with riders weight) Disc/disc Climbing Ability 25% + Dry Weight Certification/approval 127kg EEC, SABS, SA Transport (L3- unrestricted) 6

7 Model Motor Battery Speed Distance Torque Brake: (front/rear) (Lithium version) 3.0 kwatt Brushless DC60V,40AH Lithium (LiPo4) 75Kmh + (depending on riders weight and size) 90 to 115Kms (varies with riders weight) 120nM Disc/disc Climbing Ability 30% + Certification/approval EEC, SABS, SA Transport (L3- unrestricted) 7