21 Oct 21

LeasePlan: EVs are becoming more competitive in Europe

How is Europe doing in terms of EV adoption? In Fleet Week, two experts from LeasePlan, Sjoerd Brenters (pictured above) and Joel Wetterhahn (pictured within the article) share their insights about EV competitiveness in Europe according to LeasePlan's sixth Annual Car Cost Index. 

The index provides a comprehensive overview of the European car segments by comparing 100 specific vehicles in 22 countries with a 48-month contract and 30.000 km annual mileage. The comparison looks at fuel prices, taxes, insurance and maintenance costs. 

Which car segments are the most competitive in Europe? 

The average monthly driving costs in European countries differ when comparing TCO's, taking into account the country GDP to reflect the relative price position of the country.  Driving costs per month is lower in Greece with €743 and highest in Switzerland with €1,138 per month. Also, the TCO differences make Denmark and Germany the most suitable countries to own a petrol car, while Greece is the best choice for a diesel car. 

The D1 mid-size standard segment is more affordable than petrol and diesel cars in 16 countries in Europe. Wetterhahn said they compared Skoda Enyaq, VW ID.4 and Aiways U5 in this segment to weight competitiveness. 

The EV trend favours the mid-sized premium cars, which represent the most competitive segment in 17 European countries. The popular models in this segment appear as Tesla Model 3, Polestar 2, Audi A4, BMW 3 and Mercedes C series. 

The B1 sub-compact segment, on the other hand, shows slower progress. "It is due to the difference between the investment value in this segment being much lower", says Wetterhahn. At this point, other components of TCO come into view. "The relatively higher prices of EVs can be offset by government incentives and lower energy costs, while for smaller vehicles, this is not the case," says Brenters. 

Brenters also draws attention to the low investment in electric LCV due to range limitations and says the segment will develop as the range gets more extensive. 

What shall corporations do in choosing EVs? 

"If you have large diesel vans doing 40-50.000 km a year, it is difficult to switch to EV. But if you have a VW Golf using petrol and making 20.000 km a year, a VW ID.3 or a Nissan Leaf would be a good replacement," says Brenters. Fleet managers can see the best EV model and the country to transition to EVs on the Annual Car Cost Index. 

In general, "EVs are becoming less a rarity but more common in Europe," Brenters states. "If you have a car policy with budget and drivers eager to switch to EV, then you start your EV journey by choosing the right vehicle and charging solution." 

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Photos of Sjoerd Brenters, Director International Consultancy Services LeasePlan and Joel Wetterhahn, Fleet Consultant LeasePlan.

Authored by: Mufit Yilmaz Gokmen