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EVs cost 22% less to service than ICE cars, new data shows  

Fully electric vehicles are around 22% cheaper to service compared to equivalent internal combustion-engined (ICE) cars and vans, thanks to reduced labour times and fewer moving parts.

According to Fleet Assist’s 2022 data, the average transaction value of a BEV service is currently approximately 22% less than an equivalent ICE car

But Fleet Assist, which has provided the analysis, warns that the SMR price reductions are not guaranteed in the longer term due to the rising operating costs of garages.

Its research of the 850,000 fleet cars and vans that use its 5,200-strong franchised and independent garage network looked at the average transaction value of a BEV service and found that the much of the lower cost is due to reduced labour times, which are currently 33% shorter for BEVs than ICE cars.

It also uncovered that the parts component of a BEV job is typically 28% cheaper than an ICE car due to them having fewer working parts, with brake wear far lower. When considering parts prices – which have risen by around 10% in the past 12 months – the BEV/ICE SMR cost gap widens further.

The SMR data shows that currently the most common BEV parts being replaced are pollen filters, bulbs, key fob batteries, wipers and brake fluid.

But Fleet Assist also warns that BEV servicing prices could rise as dealers look to raise SMR costs to retain their profitability. It says that dealers are starting to feel the pinch of reduced servicing revenues as drivers cover fewer miles, which coincides with a rapid rise in operating costs, particularly technician salaries.

Vincent St Claire, Fleet Assist’s MD, said: “Fleet and retail drivers cannot take it for granted that BEV SMR prices will remain cheaper than ICE cars as, over time, costs could become more comparable.

“Garages are already starting to come to terms with how EVs will impact their servicing revenues and workshop traffic in the longer term. We may see more garages looking at ways to address how the paradigm shift of BEV aftersales is going to challenge their service provision and fees they charge,” he added.

The company cites the notable case of a franchised garage that has been considering implementing a specific BEV servicing labour rate of £125, an 89% increase over the equivalent labour cost of servicing ICE cars.

And while Fleet Assist has said it doesn’t support “such a knee jerk pricing action”, it notes the reality that garages need to factor in future investment and growing overheads into account – including technician training, ongoing collection and delivery services and courtesy vehicles, and workshop upgrades to manage BEVs – all of which cost time and money.

A recent survey by the Motor Ombudsman revealed that six in 10 garages expect to raise their prices in 2022 to remain profitable against the background of rising overheads.

For its part, Fleet Assist will continue to work to ensure all parties’ needs are met, including its fleet industry customers but also its garage network.

“We are looking to navigate our way through these complex times, ensuring ouar customers continue to benefit from Fleet Assist’s annual SMR spending power of in excess of £150m whilst ensuring garages invest and support our customers’ proposition,” summed up St Claire.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

8 Comments

  • Jack Burton04. Aug, 2022

    This is a misnomer. ICE engines do not have an energy storage component/gas tank that will fail in 10 years of service. Overall cost of that part alone makes the comparison meaningless.

    • Chris Curran05. Aug, 2022

      That’s a false assumption that EV batteries fail at 10 years on average.

      Experts have determined it will be 10 to 20 years or an average of 200,000 miles.

      “On January 6, 2022, a Tesla Model S P85 (the oldest performance version) reached an impressive mileage milestone of 1,500,000 km (932,256 miles). The car is used in Germany by Hansjörg von Gemmingen – Hornberg, who is known in the EV world for setting the highest mileage records in Tesla cars

    • Chris Curran05. Aug, 2022

      That’s a false assumption that EV batteries fail at 10 years.

      Experts have determined EV battery packs will last 10 to 20 years or an average of 300,000+ miles.

      “On January 6, 2022, a Tesla Model S P85 (the oldest performance version) reached an impressive mileage
      milestone of 1,500,000 km (932,256 miles). The car is used in Germany by Hansjörg von Gemmingen –
      Hornberg, who is known in the EV world for setting the highest mileage records in Tesla cars.

      Since the bottom of an EV is far less complicated, mostly solid state parts, and the bottom of the EVs are solid
      and not open to the road debris, environmental elements they will stay on the road longer with less service required
      due to corrosion. ,etc.

      Note there were arguments against the gasoline car over 100 years ago talking about all the negatives while
      promoting the tried and true horse. Are you really going to stick to the “horse” today?

    • Chris Oneill07. Aug, 2022

      You obviously aren’t an EV owner or do any kind of repairs.
      I do both, 8 years in and my EV has 9mv differences between the whole 388v pack.
      Stop following the ill informed sheep.
      There’s a new sodium / lithium battery on the table which doesn’t degrade, so the whole 5 – 10 year bull os exactly that.

    • Vincent St Clare09. Aug, 2022

      The data and trends are based on general SMR in 2022 and typically our customers operate on a 36- month or 48-month cycle. We believe it’s far too early to make long term judgements about the areas such as major component failure that you have mentioned and other areas such a suspension wear which could vary due to the increased weight of BEVs. We are keen to keep the industry informed on the latest trends and we will keep sharing our experiences as we build up more of a picture of how EVs are behaving when it comes to SMR.

  • Scott Ravenhill03. Aug, 2022

    Whilst servicing like for like appears cheaper at face value, we have seen manufacturers switching service intervals back to every 12 months on EVs, as opposed to 24 months on ICE vehicles.
    This is resulting in overall SMR budgets being equal to or in some cases more than an ICE vehicle.
    Is this just an interim phase where EVs need to be inspected more often than traditional ICE vehicle, as new models enter the market, or a permanent readjustment to ensure revenue streams are not affected?

    • Chris Curran05. Aug, 2022

      Service for what?

      All cars need a yearly inspection but I doubt anything will need replacing expect tires with heavy usage.

      Servicing EVs more often than ICE vehicles makes no sense.

    • Vincent St Claire09. Aug, 2022

      We agree with you Scott and what we are saying is that while EVs are cheaper to service currently this may change over time as dealers review their workshop strategies. Your observation may also be well founded but our data sample is currently too small to verify this aspect currently. Our data shows BEV costs are still lower simply because they have fewer working parts and wear and tear on key components such as brakes are dramatically reduced when compared with ICE cars. We are keen to keep the industry informed on the latest trends and we will keep sharing our experiences as we build up more of a picture of how EVs are behaving when it comes to SMR.