“EVs save on fuel but cost more to buy and insure” — is this widely circulated view still accurate in 2026? This article uses real data to calculate the 10-year/200,000 km total cost of ownership (TCO) for a mainstream family EV versus a comparable ICE vehicle, delivering the most objective answer possible.
Research Setup
Comparison models: BYD Song L (pure EV, ~210,000 CNY) vs Volkswagen Tiguan L (gasoline, ~230,000 CNY). Usage: first-tier city family use, 20,000 km/year, primarily home charging (0.5 CNY/kWh), occasional public fast charging (1.5 CNY/kWh).
Purchase Cost
Tiguan L base price ~230,000 CNY; registration, purchase tax (10%), and first-year insurance ~30,000 CNY; total ~260,000 CNY. Song L base price ~210,000 CNY; new energy vehicle purchase tax exemption, green plate free; first-year insurance ~12,000 CNY; total ~222,000 CNY. EV saves ~38,000 CNY in year one.
Operating Cost: 10-Year Energy Estimate
Song L consumes ~14 kWh/100 km, using 2,800 kWh/year at 20,000 km. Home charging (0.5 CNY/kWh): 1,400 CNY/year; 20% public fast charging (1.5 CNY/kWh): 840 CNY/year; total ~2,240 CNY/year, ~22,400 CNY over 10 years.
Tiguan L fuel consumption ~8.5L/100 km, using 1,700L/year. At 7.5 CNY/L, annual fuel cost ~12,750 CNY; ~127,500 CNY over 10 years. 10-year energy cost: EV saves ~105,000 CNY.
Maintenance Cost Comparison
EVs have no engine oil, transmission fluid, spark plugs, or exhaust system consumables. Main maintenance items are tires (similar to ICE) and brakes (wear slower due to regenerative braking). Estimated 10-year maintenance: 8,000–12,000 CNY.
ICE vehicles require routine oil changes (every 5,000–7,000 km) plus major service; 10-year total ~20,000–30,000 CNY. Maintenance savings over 10 years: ~15,000–20,000 CNY.
Insurance
EV insurance runs 10–20% higher than ICE vehicles, primarily because three-electric system (motor, controller, battery) components are expensive to replace. 10-year insurance difference: ~10,000–20,000 CNY higher for EV.
Battery Replacement Risk
This is the biggest uncertainty. Most mainstream EV makers offer an 8-year/160,000 km battery warranty where SOH below 70% triggers free replacement. Beyond warranty, a full replacement costs 50,000–100,000 CNY. However, improving second-life battery use and battery rental models are reducing this risk.
Summary
10-year TCO: Song L ~350,000 CNY total; Tiguan L ~550,000 CNY total. EV saves ~200,000 CNY (combining purchase advantage, energy savings, and maintenance savings). In restricted-plate cities like Beijing or Shanghai, where a green plate is equivalent to 100,000–200,000 CNY of ICE plate premium, the advantage is even more substantial. Full TCO calculator.
