Electric Mobility Operating Costs are One-Third Lower with Electric Cars

In 2025, electric cars in Europe had operating costs that were about 33 percent lower than those of vehicles with internal combustion engines. Gasoline and diesel have become more expensive since then.

According to the “EV Transition Check” by the International Council on Clean Transportation (ICCT), electric vehicles are becoming the most cost-effective vehicle option in Europe as battery costs decline and fuel prices remain high. “Electric car drivers in Europe pay about one-third less than drivers of gasoline-powered cars. These savings are hard to ignore. They also explain why the automotive market continues to move in this direction,” comments Marie Rajon Bernard, a senior researcher at the ICCT and lead author of the report.

"We expect the adoption of battery-electric cars across Europe to increase significantly in the coming years, provided that current policies remain in place."

Operating Costs Reduced by One-Third

Battery-electric vehicles charged at home and at public charging stations were 33 percent cheaper to operate in the EU in 2025 than comparable gasoline-powered vehicles—and the oil crisis beginning in February 2026 further widened this gap. In early 2026, energy costs for internal combustion engine vehicles rose by 12 percent to 36 percent, while costs for battery electric vehicles remained largely unchanged.

In addition to lower energy costs, the purchase prices of electric vehicles in the three largest vehicle segments will have already reached the level of gasoline-powered vehicles by 2025, according to price data from 100,000 vehicles in Europe’s largest automotive market, Germany. According to the same study, the number of electric vehicle models on the market quadrupled between 2020 and 2025.

Battery Costs Are Falling

Batteries, the biggest cost factor for electric vehicles, are becoming cheaper every year. Globally, battery costs fell by 35 percent between 2020 and 2025. As a result, according to the ICCT, the purchase price of battery-electric cars in Germany fell by 18 percent between 2020 and 2025, adjusted for inflation and taking into account vehicle characteristics such as range. In contrast, prices for vehicles with internal combustion engines rose by 2 percent during the same period.

“We’ve observed that car prices haven’t fallen as quickly as battery costs. This suggests that electric cars could become even more affordable in the coming years. This is a pivotal moment for automakers worldwide. European automakers must continue and even expand their investments in electrification rather than changing course. Competition in this market will intensify,” predicts Peter Mock, director of ICCT Europe.

Cost Parity in Commercial Long-Distance Transport

According to the report, battery-electric and diesel trucks in long-haul transport could be on par in terms of total operating costs as early as 2030. Germany has already reached this point: regional and long-haul trucks there are already on par in terms of cost, thanks to toll exemptions for zero-emission vehicles. For example, the purchase and operating costs of an electric long-haul truck are already 11 percent lower than those of a comparable diesel truck.

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“What many had expected to happen only years from now is now taking place in the trucking industry. In an industry where cost predictability is crucial, fleets will make the switch as soon as electrification becomes economically viable. However, this will only happen if policymakers continue to support the transition during its early years,” says Mock.

More Electric Cars—Fewer Imports of Fossil Fuels

The significant economic advantages of battery-electric powertrains, supported by measures such as the EU CO_{2 -} standards and national incentive programs for electric vehicles, are accelerating their market adoption across Europe. In the first half of 2026, 22 percent of new passenger cars sold were fully electric, and sales of electric trucks rose by 40 percent compared to the previous year. 

According to the ICCT, the transition in Europe is already paying off: The battery-electric cars on the road today save the EU approximately 4.5 billion euros ($5.22 billion) annually in fossil fuel imports. Demand for electric vehicles is also transforming automotive manufacturing. According to the report, the share of vehicles with internal combustion engines in total EU car production fell from 91 percent in 2020 to 72 percent in 2025. Battery-electric vehicles accounted for 19 percent of total production, according to the ICCT.