Abstract for:DRIVERS IMPACTING BATTERY ELECTRIC VEHICLE MONTHLY REPAYMENTS
A system dynamics approach was used to understand and determine the impact of various drivers on battery electric vehicle (BEV) market penetration rates and monthly repayments, as a result of decreased production costs. Some of these drivers include: battery costs, government subsidies, import taxes, and fuel costs. The results indicate that the introduction of government subsidies followed by lower battery costs, effectively reduces the overall retail cost of BEVs and resulting in lower repayments; thus incentivizing consumers to purchase more BEVs. Although fuel efficient vehicles are important behavioural influences on consumers, it does not result in significant saving over a 5 year period unless it’s in parallel with other drivers such as lower BEV production cost which reduce retail price.