Electric vehicles in nearly every car segment and European country are now the same price or cheaper on a TCO basis than petrol or diesel cars, despite rising electricity prices.

This year’s report finds fuel costs remain significantly lower for EVs than petrol and diesel cars, despite energy price inflation

That’s according to the latest edition of LeasePlan’s Car Cost Index, which is now available to read online.

The annual Car Cost Index is a comprehensive analysis of the total cost of owning and operating a car in 22 European countries, including the UK, and runs from the sub-compact segment to the executive market.

Key findings from this year’s Index include:

1. Fuel costs remain significantly lower for electric cars than petrol and diesel cars, despite energy price inflation: fuel costs represent 15% of the total cost of ownership of an EV, rising to 23% and 28% respectively for petrol and diesel drivers.

2. EVs in nearly every segment and European country, including the UK, are now the same price or cheaper for total cost of ownership than petrol or diesel cars:

• Compact EVs are cost competitive in 18 out of the 22 European countries surveyed
• Standard mid-size EVs are cost competitive in 19 of the 22 European countries
• Premium mid-size EVs are cost competitive in 18 out of 22 European countries

3. Among smaller cars, such as the Renault Mégane or the Kia Nero, the UK purchase and running costs were £789 (€919) a month for electric, £808 (€941) for diesel and £819 (€954) for petrol.

4. For a sub-compact car, such as the Peugeot 208, the purchase and running costs were £777 (€905) for electric, £741 (€863) for diesel and £720 (€838) for petrol.

5. For a standard mid-size car, such as a Hyundai Ioniq 5, the purchase and running costs were £902 (€1,050) for electric, £899 (€1,047) for diesel and £927 (€1,079) for petrol.

6. Similarly, the purchase and running costs for mid-size premium cars, such as a BMW 3 Series, were £1,110 (€1,292) for electric, £1,107 (€1,289) for diesel and £1,109 (€1,291) for petrol.

7. There are more EV models on the market than ever before. The first Car Cost Index back in 2016 surveyed only 11 EVs, while this year’s edition includes 33.

LeasePlan said the findings showed how EVs could help shield drivers from skyrocketing fuel prices – and urged the Government for continued support and incentives to help drivers make the switch.

Alfonzo Martinez, managing director at LeasePlan UK, said: “EVs offer drivers control in a world where fuel prices and other everyday costs are skyrocketing. They also allow drivers to feel like they’re making a personal contribution towards the fight against climate change.

“Unfortunately, we’re now seeing governments withdraw or partially withdraw some of the EV incentives that have helped to make EV driving possible for hundreds of thousands of people.

“If Britain is to maintain its position as a world leader in zero-emission vehicles and climate change action, the UK government needs to protect the EV market through long-term policies designed to bring down costs even further and improve public infrastructure. We want everyone to have the same positive experience the first and every time they get behind the wheel of an EV.”

To download the LeasePlan Car Cost Index 2022, click here.