ICCT Finds EVs Are 33% Cheaper to Drive Than Petrol Vehicles in Europe

Electric vehicles are becoming increasingly affordable to own and operate across Europe, with battery-electric vehicles costing about one-third less to drive than comparable gasoline-powered cars, according to a new report from the International Council on Clean Transportation (ICCT).

The ICCT’s 2026 EV Transition Check, published September 6, 2026, examines Europe’s progress toward zero-emission road transportation and expands on previous research by covering passenger cars, trucks, and buses. The report found that BEVs were approximately 33% cheaper to operate than gasoline internal combustion vehicles in 2025. Even drivers who relied entirely on public charging paid about 5% less to operate a BEV.

BEVs are also helping reduce Europe’s dependence on imported fossil fuels. The ICCT estimates that EVs currently on European roads save the European Union about €4.5 billion annually in fossil fuel imports.

The economic advantage of electric vehicles became even more significant during the 2026 oil crisis. Combustion vehicle energy costs increased between 12% and 36% at the beginning of 2026, while BEV energy costs remained largely stable.

EV purchase costs are also moving closer to those of conventional vehicles. In Germany, inflation-adjusted and performance-adjusted BEV prices declined approximately 18% between 2020 and 2025, while combustion vehicle prices increased 2%. Global battery prices fell about 35% over the same period, helping drive the reduction.

Consumers also have more electric models to choose from. Germany offered approximately 159 BEV models in 2025, roughly four times the number available in 2020. About 35 models were priced below €30,000.

The increase in affordability is contributing to faster EV adoption. BEVs accounted for 22% of new passenger-car registrations across the EU during the first half of 2026. Electric buses and coaches reached a 28% share, while battery-electric medium trucks reached 21%. Heavy-duty electric trucks reached 2.3%.

The ICCT also found that electric trucks are becoming increasingly competitive with diesel alternatives. Regional electric trucks can already achieve cost parity in many cases, while long-haul electric trucks could reach total cost of ownership parity with diesel by 2030 if supportive policies, including CO2 charges and differentiated road tolls, remain in place. In Germany, both regional and long-haul electric trucks are already cheaper to operate on a TCO basis.

Charging infrastructure is expanding rapidly. Europe had approximately 1.16 million public charging points by June 2026, nearly eight times the number available in 2020. DC chargers capable of at least 150 kW covered 92% of the EU’s major TEN-T highway network.

Public charging remains more expensive than private charging, however. Average ad hoc rates in June 2026 were €0.50 per kWh for AC charging and €0.62 per kWh for DC charging. Smart charging and vehicle-to-grid technology could further reduce costs while improving grid flexibility. The ICCT estimates smart charging could reduce European peak power demand by 6% by 2035.

The environmental benefits are equally significant. Lifecycle greenhouse gas emissions from a BEV car are 73% lower than those from a comparable gasoline vehicle, while battery-electric long-haul trucks produce 86% fewer lifecycle emissions than diesel trucks.

The report also highlights the public-health advantages of eliminating combustion emissions. Road transportation contributed to an estimated 74,000 premature deaths and 11,000 cases of pediatric asthma in Europe during 2024.

EV production is also becoming an increasingly important part of Europe’s automotive industry. BEVs represented 19% of passenger cars produced in the EU in 2025, while Europe’s battery supply chain supported an estimated 62,300 jobs.

The ICCT said continued investment in electrification remains important as Europe works to strengthen energy resilience, reduce transportation emissions, and maintain automotive competitiveness. Falling battery costs, greater vehicle availability, lower operating expenses, expanding charging infrastructure, and improving electric truck economics are collectively making the transition to electric transportation increasingly practical.