Plug cheaper than the pump in the majority of European countries
LeasePlan has just released its 2021 Car Cost Index, which reveals that compact and mid-size electric vehicles (EVs) are now fully cost competitive with petrol and diesel cars across most European countries.
In the few countries where EVs are not yet cost competitive, the price gap between EV and diesel/petrol cars has narrowed significantly. If the trend continues, EVs will likely reach cost competitiveness in every country surveyed, including Eastern European markets such as Romania and Poland, by the mid-2020s.
LeasePlan’s annual Car Cost Index, now in its sixth edition, is a comprehensive analysis that reveals the total cost of ownership (TCO) of a car – including fuel/energy, depreciation, taxes, insurance, tyres and maintenance – in 22 European countries.
Key findings from the 2021 Car Cost Index
- The average monthly cost of driving a car varies hugely across Europe, from €743 a month in Greece to €1,138 in Switzerland
- Relative to GDP, the total cost of ownership is highest for drivers in Switzerland and Portugal, and lowest for drivers in Denmark and Germany
- Poland is the cheapest place to drive a petrol car, while Greece is the cheapest place to drive a diesel car
- EVs in the premium mid-size (D2) segment are fully cost competitive compared to internal combustion engine vehicles (ICEs) in 17 countries, including: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom
- EVs in the Compact (C1) segment are fully cost competitive compared to ICEs in 14 countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom
This report is a wake-up call for policymakers: electric cars have finally passed the affordability tipping point and are now cost competitive across Europe, but government action on infrastructure remains woefully inadequate. Ahead of COP26, we are calling on policymakers to finally step up and invest in a charging infrastructure worthy of their net zero ambitions. Until charging points are as ubiquitous as petrol stations on the streets of Glasgow, Europe has no hope of reaching net zero.
LeasePlan’s latest Car Cost Index shows that the commercial case for switching corporate fleets to EVs has never been stronger. Clean road transport represents one of the biggest opportunities for both businesses and our climate. Through EV100, we’ve been working with companies like LeasePlan to make EVs the new normal by 2030, so it’s exciting to see we’ve already passed the economic tipping point across most of Europe today. Every business can and should start converting their fleet to electric. With COP26 on the horizon, we must continue to signal that zero emission vehicles are the future.
