The TCO or total cost of ownership for your electric fleet will be much lower than that of petrol-powered vehicles. At first glance, the higher initial costs might throw you off, but in the long run, EVs deliver exceptional benefits and savings for your fleet.
As of 2026, after logging over 10 million kms in commercial use, investigations reveal that the TCO for a commercial electric van is generally 15% lower than that of a comparable petrol or diesel vehicle. Stick with us as we unpack the TCO for EVs and look at how Cartrack can help you keep your TCO low.
The formula for TCO—total cost of ownership—is the initial buying price of the asset & running costs like operational and maintenance costs, minus the resale value. Running costs include factors like fuel, insurance, maintenance, licensing, and accident repair.
Yes, insurance is usually higher on electric cars due to their specialised, newer technological parts and labour. EVs have expensive & specially designed batteries that need the help of uniquely skilled technicians and parts once the time for maintenance comes. Some insurers also haven’t caught up with the emergence of EV technology, immediately making EV premiums more expensive.
Yes, EVs do have a lower total cost of ownership thanks to lower fuel costs and fewer moving parts needing maintenance. The highest cost with EVs is typically the initial cost, but overall, operational costs are massively reduced, which then brings down the TCO.
The common TCO mistakes include not considering certain factors when calculating the total. These include factors like:
Yes, Cartrack’s fleet system can help with managing costs and improving TCO. FleetWeb is designed to make your life much easier by doing the heavy lifting for you, automating processes and providing all the tools needed for smooth management. Smarter insights mean better operations and less damage & downtime.
Some ways to reduce TCO include:
Yes, owning EVs is better for you as a fleet owner versus petrol vehicles overall. EVs do have a higher upfront cost and you may have to invest in infrastructure, but fuel & maintenance costs are decreased, and carbon emissions are hugely reduced.
The depreciation rate for EV vehicles appears to be around 30%-50% in the first 3 years. It’s understood that the first year is the most severe, but depreciation begins to stabilise after those first 12 months. This is mainly attributed to the vehicle battery.
Tips for controlling costs in your fleet and saving money include:
No, it’s not more expensive to use a fleet system for EV vehicles versus petrol vehicles, although it can depend on the add-ons you choose. Fleet systems like FleetWeb are accommodating of both ICE vehicles and EVs (even when they’re mixed), so the price is essentially the same. But packages are customisable, so it varies according to your particular business needs.
The day-to-day costs of running a fleet include:
Other costs like maintenance, insurance, and fleet management software are regular but not daily costs.
The real benefits of having a fleet system to help run your green fleet include:
