The pricing gap between electric vehicles and petrol/diesels continues to close fast, bringing Europe in general ever close to that crucial tipping point while some countries are already there.

EVs are fully cost competitive compared to internal combustion engine vehicles (ICEs) in Norway and the Netherlands, and becoming close in the UK and Denmark

That’s according to LeasePlan’s annual Car Cost Index, which also shows the UK is now the second most cost-effective country in Europe to own an electric vehicle.

The latest analysis (see last year’s research here) reveals that compared to 2018, there has been a sharp decline in the price differences between electric cars and petrol/diesel vehicles across the European markets, with EVs fully cost competitive compared to vehicles with internal combustion engines (ICEs) in Norway and the Netherlands.

The research also finds that wealthier countries tend to have higher costs of EV ownership although in the Netherlands and Italy, the affordability is relatively low with the average total cost of ownership being relatively high compared to the GDP. For Greece and the UK, the average total cost of ownership is relatively low compared to GDP, indicating that driving a vehicle in these countries is relatively cheap

Tex Gunning, CEO of LeasePlan, said: “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. 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.”

Further key findings from 2019 are: 

• The average cost of driving a car varies hugely across Europe, from €440 (£400) a month in Greece to €830 (£755) a month in Norway. The European average is €617 (£561) a month.
• For ICE cars, depreciation (36%) is responsible for the majority of total costs, followed by taxes (20%), fuel (18%), insurance (13%), maintenance (9%) and interest (5%).
• For electric drivers, depreciation makes up a larger share (52%), however costs are saved through using electricity for fuel. EVs also benefit from consistently lower taxes and maintenance costs across Europe.
• Driving an EV is cost competitive compared to driving an ICE 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 for EVs is in reach.
• The Netherlands is the most expensive place to drive a diesel car (€937/month / £852/month). In the Netherlands the registration tax (BPM) for diesel cars can add as much as 35% to a diesel vehicle’s net investment value. Conversely, Romania is the cheapest place to drive a diesel car (€407/month / £370/month).
• Norway is the most expensive place to drive a petrol car (€851/month / £774/month). This is significantly higher than the European average of €594 (£540) per month. Greece is the cheapest place to drive a petrol car (€445/month / £405/month).
• Weighted for GDP, drivers in the Netherlands and Italy have the highest total cost of ownership for all powertrain types, while drivers in Greece and the UK have the lowest.