A new study challenges one of the most common myths about electric cars: in three out of four cases, driving on electricity is cheaper than driving on fuel – if one key condition is met.
Too expensive, unsafe, or impractical for long distances – these are still the usual arguments against electric cars. But a recent study by the Boston Consulting Group (BCG) in collaboration with ChargeFrance (an association of French charging network operators including Ionity and Allego) paints a different picture. After comparing the actual operating costs, the researchers found that in 75 percent of cases, electric cars are cheaper to run than combustion engines.
This cost advantage even holds up when assuming a petrol price of only €1 per liter – a level Europe hasn’t seen in nearly twenty years. The conclusion: electric cars are not only more climate-friendly, but also more economical, provided that the charging conditions are right.
One of the main reasons electric cars are cheaper to operate lies in their lower energy costs. Drivers benefit most when they can charge at home, where electricity prices are significantly lower than at public charging stations. According to the study, home charging can reduce energy costs by up to 47% compared to petrol and about 38% compared to diesel. For anyone with a private parking spot and a wallbox – or access to favorable electricity tariffs – the savings are easy to notice.
Maintenance also costs less: electric cars don’t need oil changes, clutches, or exhaust systems. Thanks to regenerative braking, brake wear is reduced, too. Studies show that maintenance expenses are 20–30% lower than for combustion vehicles, sometimes even more.
Electric motors are mechanically simpler and contain far fewer moving parts than combustion engines. That means fewer things can break – and when they do, repairs are often cheaper. For fleet operators and high-mileage drivers, this means fewer breakdowns and more predictable costs.
Many insurers now offer lower premiums for electric cars, citing fewer accidents and more predictable repair costs.
There’s also a tax advantage: in Germany, newly registered EVs are exempt from vehicle tax (Kfz-Steuer) for up to ten years. Over a typical ownership period, this adds up to significant savings.
When you look at the total cost of ownership (TCO) – including purchase price, energy, maintenance, insurance, and tax – electric cars often come out ahead, especially over a period of five years or more.
The difference becomes even more pronounced for high-mileage drivers, where lower running costs quickly add up. But even for daily commuters, the ability to charge at home is what makes the biggest difference.
For example, drivers covering around 250 kilometers per day can save up to €300 per month thanks to lower maintenance and energy costs, according to the study. BCG describes this as a “fast return on investment”, especially for those who drive frequently.
The environmental balance also looks better: over their full lifecycle – from production to use and disposal – electric cars emit three to nine times less CO₂ than comparable combustion vehicles. Even in countries with a relatively carbon-intensive electricity mix, EVs still maintain a clear advantage.
Another reason the cost gap is shrinking: battery prices continue to fall rapidly. Since 2013, prices per kilowatt-hour have dropped by about 90%, now averaging €50–80 per kWh depending on the manufacturer.
This drop directly affects vehicle prices. According to the BCG study, the price gap between an electric car and a comparable combustion model has fallen from around €7,700 to just €2,000 in one year – and for small cars, the difference is often negligible. Examples include the new Renault 5 or Volkswagen ID.3, both priced similarly to the VW Golf.
Research from the Center Automotive Research (CAR) in Bochum confirms this trend. In August, the average price difference between the 20 best-selling electric cars and their combustion counterparts had fallen to €2,243, a reduction of more than two-thirds within one year. Average prices were €35,353 for EVs and €33,110 for combustion models.
At the same time, traditional cars have become significantly more expensive in recent years – further tipping the balance in favor of EVs.
Of course, the exact savings depend on individual driving habits. Those who drive little or have limited charging access might save less. But for most households and companies, electric cars already make financial sense.
According to the study, a small car in the B-segment delivers a cost advantage of about €8,000 over five years. Even in larger vehicle classes, EVs remain more economical – especially when home or mixed charging is available.
BCG summarizes it clearly: “The cost argument against electric cars is losing ground quickly.” Already today, 75% of newly registered electric cars are cheaper to own over five years than combustion vehicles.
By 2028, that share is expected to rise to 91%, assuming electricity prices and the energy mix develop as projected.
With lower maintenance costs, cheaper home charging, and tax benefits, electric cars are now often the more economical choice.
And the trend points clearly toward even greater savings in the years ahead.
For companies that means: With solutions like NAVIT Home Charging, employers can pass these cost benefits directly to their employees – making sustainable mobility both simple and financially rewarding.
