Electric vehicles now more cost competitive

17th October 2019​

The UK is now the second cheapest country in Europe to own an electric car.

A new Car Cost Index published by LeasePlan shows that the total cost of electric car ownership in the UK is €676 a month. The cheapest country is Greece, at €656. Germany, France and Romania are the next cheapest countries. The most expensive countries are Poland at €995, Spain and Italy, and the average is €854.

In almost all the countries analysed, the price gap between an electric car and a diesel or petrol car has narrowed over the past 12 months. EV s are now cost competitive compared to an internal combustion engine vehicle (defined as the average between diesel and petrol) in Norway (same price) and the Netherlands (1% more expensive). In the UK and Denmark, cost competitiveness is now within in reach.

“Our Car Cost Index shows electric vehicles are becoming more affordable than ever, especially in Northern Europe where government incentives are having a positive impact,” LeasePlan CEO Tex Gunning said. “While it’s good to see the cost gap closing in other countries, there is still a lot of work that needs to be done to ensure everyone can drive electric.

“We are also seeing a worrying tendency from policymakers to remove EV incentives, which will significantly slow down the fight against climate change and poor air quality in our towns and cities. Governments across Europe need to step up and commit to long-term green incentives and charging infrastructure projects that will make EVs the common sense choice for all drivers.”

The Car Cost Index analyses the costs of driving a small to medium- size car in 18 European countries, based on all the costs that motorists incur, such as fuel, depreciation, taxes, insurance and maintenance.

It also found that the average cost of driving a car in Europe is €617 a month (€594 for petrol cars, €613 for diesel, for the UK the respective figures are €596 and €567). It varies from €440 a month in Greece to €830 a month in Norway. Weighted for GDP, drivers in the Netherlands and Italy have the highest total cost of ownership, while drivers in Greece and the UK have the lowest.