The 2025 Ayvens Car Cost Index shows battery electric vehicles (BEVs) now offer a lower total cost of ownership (TCO) than petrol or diesel cars in many European markets, particularly in northern and western regions.
Based on leasing costs over four years, for 18,600 miles a year (30k km), BEVs are increasingly cost-effective, especially in the compact and premium segments. In fact, mid-size premium BEVs are now cheaper to run than their internal combustion engine (ICE) equivalents in every European country surveyed.
Greece, Sweden and Finland are the most affordable countries for leasing a BEV, with average monthly costs below €820.
In the UK and other mature fleet markets, BEV adoption has been driven by company car tax incentives and salary sacrifice schemes, which significantly reduce employer National Insurance contributions while supporting sustainability targets.
For employees, the benefit-in-kind savings mean access to new, low-cost EVs with reduced out-of-pocket expenses, boosting morale and retention. The BMW i4, for instance, now has a lower TCO than the BMW 3 Series petrol in 21 out of 27 countries analysed.
As EVs become more viable financially, understanding local tax regimes and leasing policies is essential for maximising fleet cost-efficiency across Europe.
To see the full report, click here.