UK ranked fifth for EV

LeasePlan has released its annual Car Cost Index, with the latest analysis showing that electric vehicles (EVs) are now becoming cost competitive in several European countries, including the UK.

The UK has been ranked as the fifth most cost-effective country in Europe to own an electric vehicle. According to the Index, the total monthly cost of owning an electric vehicle in the UK is £630), 14% lower than the European average of £719.

The UK currently places behind Hungary, Poland, Norway and the Netherlands, with Norway revealed as the only country where the cost of owning an EV is cheaper than a traditional petrol or diesel vehicle.

This could be a contributing factor to the recent data from the Society of Motor Manufacturers and Traders (SMMT) which has seen registrations for plug-in electric vehicles increase by 37% in April 2018 compared to the same month last year.

When analysing the breakdown of the UK average monthly cost of ownership for an EV the main cost differentiator aside from the electricity / fuel costs, is depreciation, largely due to high initial outlay costs. This accounts for 62% of the total monthly cost of ownership of an electric vehicle compared to 41% for diesel and 36% for petrol vehicles. However, by 2024, it is expected that prices will be level for both kinds of vehicles.

Matt Dyer, managing director of LeasePlan UK, said, ‘Electric vehicles are becoming more viable and cost-effective all the time. It’s good to see that the costs of going electric in the UK are lower than in most other European countries, although they are still higher than for petrol and diesel and we still have further to go to catch up with the leaders in this field: Norway and the Netherlands.’