Compact and mid-size electric vehicles (EVs) are now fully cost competitive with petrol and diesel cars across most European countries according to LeasePlan’s newly released 2021 Car Cost Index.
Furthermore, in the few countries where EVs are not yet cost competitive, the EV versus diesel/petrol car price gap has narrowed significantly, according to the Index. 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.
The LeasePlan annual cost index, now in its sixth edition, determines a car’s total cost of ownership (TCO) in 22 European countries through a comprehensive analysis of fuel/energy, depreciation, taxes, insurance, and maintenance.
For the Index, costs are averaged over the first four years of ownership and assume 30,000 km of driving a year. “Cost competitive” is defined as EVs that are no more than 5% more expensive than their ICE counterparts.
“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,” said Tex Gunning, LeasePlan CEO.
Sandra Roling, Head of Transport at the Climate Group, commented, “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.”
The full LeasePlan 2021 Car Cost Index is available here.