The UK has been ranked as the second cheapest country in Europe to own an electric vehicle (EV), according to a new study by LeasePlan.
It’s annual Car Cost Index reveals that there has been a sharp decline in the price differences between electric cars and petrol/diesel vehicles across the European markets.
UK buyers are among those who benefit the most, with the average monthly cost of owning an EV coming in at just over £600.
Conventional petrol and diesel models are still the cheaper overall, however.
Greece was found to be the cheapest place to own an EV, with buyers spending, on average, £580 per month,
Alfonso Martinez, managing director of LeasePlan UK, said: “This year’s Car Cost Index has shown that electric vehicles are increasingly becoming a rival option to traditionally fuelled vehicles, as costs are continuing to fall and legislation, such as the Company Car Tax announcement from July, is now actively encouraging drivers to look for electric alternatives.
“The issue around supply, however, isn’t going anywhere. For the nation to see a real boost in the uptake of electric vehicles, we need reassurance from manufacturers that these products will be available in the UK in shorter timeframes than what is predicted currently.”
LeasePlan’s report found that 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.
Sales of EVs continue to grow in the UK. Registrations were up 377.5% in August, to 3,147 units as new models and some pent up demand boosted registrations, while 4,014 hybrid electric cars also joined UK roads, an uplift of 36.2%.