This paper examines vehicle cost competitiveness in Saudi Arabia using a total cost of ownership (TCO) framework applied to premium sport utility vehicles (SUVs). The analysis compares internal combustion engine vehicles (ICEVs), hybrid electric vehicles (HEVs), plug-in hybrids (PHEVs), and battery electric vehicles (BEVs) over a 10-year, 250,000-kilometer horizon. TCO is decomposed into capital cost (acquisition cost net of the discounted resale value), financing cost (interest and bank-related fees), and operating cost (energy, maintenance, insurance, and fees) to ensure that the cost components are nonoverlapping. Results show that capital cost accounts for approximately 66%-79% of total ownership cost, increasing with electrification, while financing contributes around 11%, bringing the combined capital and financing share to roughly 78%-90%.
