an advantageous TCO for electric vehicles

© Freepik

LeasePlan published its Car Cost Index 2021 (read the 2020 edition) on October 14, 2021. We remind you that every year this lessor studies the total cost of ownership and use or TCO, for Total Cost of Ownership, of a car in 22 European countries*. Thus, it determines the average monthly TCO of a vehicle for each country (energy/fuel costs, depreciation, taxes, insurance, maintenance, etc.). It then compares the TCO across different vehicle segments: city cars (B1), compacts (C1 and SUV-C1), standard midsize (D1) and premium midsize (D2).

In this 6and edition, the average cost is established over the first four years of ownership, and based on an average annual vehicle mileage of 30,000 km. “An electric vehicle is said to be ‘cost competitive’ when it is at most 5% more expensive than its thermal equivalent (with an internal combustion engine)”, specifies the Car Cost Index 2021.

Variable TCOs in Europe

The average monthly cost of running a car varies considerably between the countries studied. It is between 743 euros per month in Greece and 1,138 euros per month in Switzerland. In France, the average TCO is 887 euros per month. According to the Car Cost Index, “compared to GDP, the TCO of a vehicle is higher for Swiss and Portuguese drivers. On the other hand, it is the lowest for the Danes and Germans. From a global point of view, it is relatively expensive to drive in Northwest Europe such as Norway, the Netherlands and Switzerland. On the other hand, it is cheaper to drive a thermal vehicle in Southeast European countries. In fact, Poland and Greece are the countries where driving a petrol and diesel car, respectively, costs less.

A better TCO for electric in most segments

In terms of engines, “electric is more affordable than gasoline and diesel in the D1 segment in sixteen European countries,” according to LeasePlan. Driving a type D1 electric car in France costs €651, compared to €865 and €901 respectively for a diesel and petrol vehicle. Note that it is even more expensive to drive a rechargeable hybrid: €962 on average in France.

The observation is the same in segment D2. “Electric vehicles in the D2 segment are the most affordable option across all comparison criteria compared to internal combustion vehicles in 17 European countries. Namely: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Slovakia, Spain, Sweden, Switzerland and United Kingdom”, according to the Car Cost Index 2021. Thus, the TCO of a type D2 electric vehicle is even higher than that of a combustion engine in the Czech Republic, Hungary, Luxembourg and Ireland, for example. In France, the TCO of a D2 electric car is lower (899 euros) than that of a diesel, gasoline or plug-in hybrid car (more than 1,000 euros on average).

In the C1 segment, tram also remains the most affordable choice in fourteen countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom. Even if the TCO of a gasoline vehicle (737 euros) in the C1 segment remains slightly lower than that of diesel (768 euros), it does not reach the level of the cost of electricity in France (644 euros).

However, in the B1 segment, electric is still struggling to become profitable compared to diesel. It is more competitive in only eight of the 22 countries studied. These are in particular Germany, Italy, Norway, Portugal, Sweden and France.

Arguments for the electrification of fleets

The Car Cost Index 2021 also compared the average TCO per country between a Volkswagen Golf (diesel, gasoline or plug-in hybrid) – a standard fleet car very common in the countries studied – and a Volkswagen ID.3 (electric). According to their analysis, the Volkswagen ID.3 has a lower total cost of ownership than the Volkswagen Golf in twelve of the 22 European countries studied.

Reasons that will certainly lead companies to electrify their fleets. “The Car Cost Index shows that the business case for going electric in corporate fleets has never been stronger. As part of the EV100 program, we’re working with companies like LeasePlan to make electric vehicles the new normal by 2030. So it’s great to see that we’ve already crossed the economic tipping point in most of Europe today, notes Sandra Roling, transportation from The Climate Group. All companies can and should start converting their fleet to electric. »

Indicators in favor of electricity

Finally, in terms of the breakdown of the TCO, “lower energy costs and road taxes for electric vehicles help to reduce the total cost of ownership of an electric vehicle overall,” says the Car Cost Index 2021.

“In the few countries where electric vehicles are still not competitive, the price difference between them and diesel/petrol cars has narrowed considerably. If the trend continues, electric vehicles are likely to be more competitive in use than internal combustion engines in all countries in this survey, including Eastern European countries such as Romania and Poland, by 2025,” the report concludes.

As long as you deploy charging points

“According to the Car Cost Index 2021, electric cars have finally crossed the threshold of affordability and are now competitive across Europe,” comments Tex Gunning, CEO of LeasePlan. But government action in terms of electric charging infrastructure remains insufficient. Until charging points are as ubiquitous as gas stations on the streets of Glasgow, Europe has no hope of achieving net zero CO emissions.two. As COP26 approaches, we urge policymakers to invest in EVCIs to match their ambitions of achieving net zero emissions. »

* Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Hungary, Ireland, Italy, Luxembourg, Norway, Netherlands, Poland, Portugal, Czech Republic, Romania, United Kingdom, Slovakia, Sweden, Switzerland.

Leave a Comment