The development of electric vehicles (EVs) has advanced rapidly over the past decades. Researchers and engineers have concentrated on the improvement of EV performance through the advances in batteries, motors, converters, controllers and relevant auxiliaries, with great successes. Now, it comes to the stage of commercialization! It is important to understand various cost issues and the business models relating to EV application. This paper aims to discuss the application and cost analysis of EVs and internal combustion engine (ICE) vehicles in Macau. Viability of EVs will be assessed by comparing the costs of an electric motorcycle (EM) with its comparable counterparts.