Electric vehicles 33% cheaper to operate in Europe, ICCT study finds

An analysis by the International Council on Clean Transportation (ICCT) reveals that electric vehicles (EVs) in Europe are approximately 33% cheaper to operate than equivalent gasoline-powered models, based on 2025 data.

The cost advantage stems from lower maintenance and energy expenses. While fuel prices for internal combustion engines rose by up to 36% in early 2026, electricity costs for charging remained relatively stable, widening the economic gap between the two technologies.

Regarding purchase prices, the gap between EVs and traditional vehicles is narrowing. Between 2020 and 2025, the purchase price of electric cars decreased by 18% (adjusted for inflation), while prices for internal combustion engine vehicles rose by 2%. A primary driver for this trend is the 35% global reduction in battery costs during the same period. In markets like Germany, the price difference between the most popular vehicle categories is approaching parity.