EVs now competitive, says LeasePlan’s Car Cost Index
In several European countries, electric vehicles (EVs) are now cost competitive with traditional powertrains. The TCO gap is rapidly narrowing in Belgium and the UK, while EVs are already cheaper in Norway and the Netherlands. That is the conclusion of LeasePlan’s most recent Car Cost Index (CCI).
The CCI is a comprehensive, annual analysis of the Total Cost of Ownership for a small to medium-sized car (B & C segment) in 21 countries. Factored in are all relevant costs for each of the countries surveyed, including taxes, insurance, fuel, maintenance and depreciation.
- Average TCO in Europe is €616, but that monthly figure varies from €448 in Poland to €761 in Italy.
- Weighted for GDP, the highest TCO is borne by drivers in Italy, Finland and Belgium. By the same measure, TCO is lowest in Ireland, Poland and Switzerland.
- TCO of EVs also varies greatly, from a low of €597 in Hungary to a high of €986 in Italy.
- Norway is the only country where TCO for an EV (€670) is lower than for a petrol (€731) or diesel (€722) car. Norway is the most expensive country to drive a fossil-fuel car; each motorisation is about €200 more expensive than the European average. The difference is due to higher road taxes, higher VAT on petrol and diesel cars and generally the higher cost of living in Norway.
- In the Netherlands, an EV (€829) is cheaper than diesel (€861) but higher than petrol (€785).
- On average, EV owners pay more in road tax and VAT (due to higher sticker price). This works out to €131 a month, vs. €104 for petrol cars and €108 for diesels.
- On the other hand, EV owners save a bunch on fuel. Their average spend on electricity is €39 per month, vs. €110 for petrol and €78 for diesel drivers.
- The best country to still own a petrol car is Romania. Monthly TCO for petrol cars is just €353 on average, due to low taxes (an average of just €50 per month in VAT and road tax, no more than 48% of the overall European figure).
Expressing approval of the fact that Evs are now cost-competitive in a number of European countries, LeasePlan CEO Tex Gunning nevertheless lamented that this is not yet the case everywhere.
“Our CCI reveals that policymakers need to take action on key issues like vehicle taxation and charging infrastructure to make EVs a viable alternative across the whole of Europe. We need to get started now. Electric vehicles are one of the best ways to combat climate change and everyone should be able to afford to go green”.