ISTANBUL 

American consumers have saved more than $1 billion in upfront costs on purchases of more than 150,000 electric vehicles (EVs) since the beginning of 2024, the Treasury Department and the Internal Revenue Service said Wednesday.

The figure indicates consumers saved $1,750 annually on average on fuel and maintenance costs, or $21,000 of discounted savings over the typical 15-year lifespan of a vehicle, compared to a gasoline vehicle, the agencies said in a statement.

"For the more than 150,000 vehicle sales that have used the upfront discount to date, this equates to around $262 million annually on fuel and maintenance costs, and up to $3.2 billion in costs over the life of the vehicles," it added.

Treasury Secretary Janet Yellen said: "This discount is increasing consumer choices and creating new opportunities for companies to expand their customer base."

The US saw around 1.5 million passenger clean vehicle sales in 2023, which include battery electric, fuel cell, plug-in hybrids, which marked the highest annual total in history. The figure is also a 50% annual increase from 2022, according to the statement.

While maintenance costs are typically 40% lower for EVs compared to gasoline-powered cars, EV owners will between $18,000 - $24,000 more than a gasoline vehicle instead since fuel is the largest contributor to the savings, it added.