European EV Drivers Spend a Third Less on Fuel Than Gasoline Owners
A new ICCT report shows that running an electric car in Europe in 2025 was about 33% cheaper than a comparable combustion vehicle. Even those who rely on public charging stations see savings of 28%. The gap is expected to widen due to recent fuel price spikes.
The ICCT's analysis of 100,000 German vehicles shows EV purchase prices matched combustion models in the three largest segments during 2025. Globally, battery costs dropped 35% over the preceding five years, while inflation-adjusted EV prices in Germany fell 18%, contrasting with a 2% rise for gasoline cars. This convergence occurred alongside a fourfold increase in available electric models.
The report also highlights that electric long-haul trucks in Germany already operate at an 11% cost advantage over diesel, largely due to toll exemptions, with EU-wide total cost of ownership parity projected by 2030. However, these gains face pressure, as Volkswagen's announcement to cut 100,000 jobs and potentially close four German plants has intensified political calls to weaken EV-supportive policies.
The widening cost gap could accelerate consumer adoption of electric vehicles, potentially reshaping household transportation budgets across Europe. However, political pressure to roll back supportive policies, exacerbated by automaker job cuts, may slow this transition. If subsidies or toll exemptions are removed, the economic advantage for EV owners could diminish, affecting both individual purchasing decisions and the competitive landscape for European manufacturers. Ultimately, the report's findings may influence how governments balance industrial employment concerns with climate commitments.