Electric vehicles are more cost competitive than ever
LeasePlan has just released the seventh edition of the Car Cost Index, which revealed that electric cars (EVs) are more cost competitive than ever before. The Car Cost Index analyses the total cost of owning and operation a car (TCO).
This blog was originally published by ALD Automotive | LeasePlan, now Ayvens.
This year's Car Cost Index reveals that EVs in nearly every segment and European country are now the same price or cheaper on a TCO (total cost of ownership) basis than petrol or diesel cars, despite rising prices for fuel and electricity. In the seventh edition
Key findings from this year's index:
Despite energy price inflation, fuel costs remain significantly lower for electric cars than petrol and diesel cars: fuel costs represent 15% of the total cost of ownership of an EV, while this is 23% and 28% for petrol and diesel drivers
- EVs in nearly every segment and European country are now the same price or cheaper on a TCO basis than petrol or diesel cars:
- Compact EVs are cost competitive in 18/22 European countries
- Standard mid-size EVs are cost competitive in 19/22 European countries
- Premium mid-size EVs are cost competitive 18/22 European countries
- The average monthly cost of driving a car varies hugely across Europe – from €905 a month in Greece to €1,313 in Switzerland
- There are more EV models on the market than ever before. The first Car Cost Index surveyed only 11 EVs, while this year’s edition includes 33
EVs are the best way to protect drivers from skyrocketing fuels costs. Unfortunately, governments are pulling the plug far too early on EV incentives, even in countries with ambitious zero-emission targets. This ‘ban without a plan’ attitude will have disastrous consequences for the fight against climate change. We need consistent, long-term policies that will ensure going EV is the common sense choice for all drivers.
LeasePlan has committed itself to achieving net zero tailpipe emissions from its funded fleet by 2030. LeasePlan is also a founding partner of The Climate Group’s EV100 initiative, launched around the UN General Assembly in September 2017
Notes on the index:
- The 22 countries included in the Car Cost Index are: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Switzerland, and the United Kingdom
- Costs are averaged over the first four years of ownership, assuming an annual mileage of 30,000 km. ‘Cost competitive’ is defined for the purpose of the Index as EVs which are no more than 5% more expensive than their ICE counterparts
- The Car Cost Index factors in the various costs involved in car ownership in each country, including energy/fuel, depreciation, tax, interest, insurance, and maintenance
