OPTIMIZATION OF TOTAL COST OF OWNERSHIP (TCO) OF ELECTRIC VEHICLES IN CONGESTED URBAN ENVIRONMENTS: A CASE STUDY IN HANOI, VIETNAM

Abstract

This paper presents a comprehensive analysis and optimization of the Total Cost of Ownership (TCO) for Electric Vehicles (EVs) versus Internal Combustion Engine (ICE) vehicles within Hanoi's unique congested urban environment. A mathematical model incorporating battery degradation under high temperatures, energy consumption variability in stop-and-go traffic, and local incentive policies is developed. Our findings, based on a comparative case study involving popular EV and ICE models, reveal that while initial acquisition costs for EVs remain higher, strategic charging, Governmental subsidies, and the inherent inefficiencies of ICE vehicles in heavy congestion contribute to a significantly lower TCO for EVs over a 7-year ownership period. This study provides critical insights for policymakers and consumers in similar developing urban contexts.