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 life cycle cost (LCC) of both EV and internal combustion engine (ICE) vehicles in Macau. Viability of EVs will be assessed by comparing the LCCs of a Mitsubishi i-MiEV, and its comparable ICE counterpart “i”; the fuel cost and CO2 emission reduction of an EV will also be evaluated.