Publish Date: December 19, 2023

With electric vehicles (EVs) becoming more widely available on the market, state governments across the country are taking steps to incorporate more electric vehicles into their state fleets. This analysis demonstrates the potential long-term savings EVs could deliver for Indiana, finding that replacing Indiana’s light duty vehicle fleet with comparable EVs could save roughly $62.4 million over a 15-year span.

While Indiana already recognizes the economic benefits of alternative fuel vehicles in many state policies, a fleet procurement process that fails to account for Total Cost of Ownership (TCO) means Indiana isn’t taking full advantage of its own investments in EV infrastructure. The current Indiana State Code requires state entities to purchase or lease clean energy vehicles unless the purchase or lease cost of the new vehicle would cost 20% more than a comparable non-clean energy vehicle. This appraisal may leave out differences in maintenance and fueling costs which could add up to significant savings over the lifetime of a vehicle.

By incorporating TCO analysis into the state’s fleet procurement process, Indiana can help ensure that Hoosier taxpayers receive the best value for their investment while advancing the state’s mission of sustainability and economic prudence.

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