Economic and Investment Feasibility Comparison Between Electric and Conventional Delivery Vehicles

Case Study of PT Pos Indonesia, Karawang Branch

Abstract

Transportation is one of the main contributors to carbon emissions and fossil fuel consumption. In the context of national logistics, conventional vehicles still dominate goods distribution operations, including at PT Pos Indonesia. This study offers an economic evaluation of environmentally friendly vehicle alternatives, namely electric vehicles, which support sustainability and long-term cost efficiency. This study aims to compare the economic value between electric vehicles and conventional vehicles in the delivery of goods at PT Pos Indonesia's Karawang Main Branch Office. We used the Total Cost of Ownership (TCO) approach, considering the initial investment, energy, maintenance, insurance, annual taxes, and resale value. We analyzed the long- term investment feasibility using Net Present Value (NPV). Results show that conventional vehicles have a TCO of IDR72,452,343, while electric vehicles have a TCO of IDR75,008,120. In addition, the NPV calculation shows that electric vehicles provide a positive NPV of IDR53,832,465, while conventional vehicles record a negative NPV of –IDR524,074,394. These results show that electric vehicles are viable in the long term. This study contributes to the theoretical literature on green logistics and supports practical decision-making. These findings are relevant for logistics industry players and policymakers in promoting the adoption of electric vehicles as a strategy for cost efficiency and decarbonization of the transportation sector.