The Energy & Climate Intelligence Unit (ECIU) published a report on 8 November 2022 comparing the costs of three popular electric vehicle brands with equivalent combustion cars over a 14-year ownership period in Britain and Germany. It found that all the electric models it examined generate net savings over the lifetime of the vehicle1.
The report puts average net savings at £8.3k in Britain and €7.4k in Germany over that 14-year lifetime. If those savings were replicated across national passenger car fleets, the ECIU says they imply national cash savings of £300 billion and €353 billion respectively over the next 14 years1. On a conservative assumption that 10% of the electric vehicle battery value will be available to consumers at scrappage, the report says average net savings rise to £8.7k in Britain and €7.8k in Germany1.
The report also states that the electric vehicle premium above the upfront price of an equivalent combustion car is significantly higher in Germany than in Britain for two of the three models looked at, which it says indicates carmakers are capturing Germany's EV grants, now phased out in Britain1.
"All EV models generate net savings over the lifetime of the vehicle."
The report sets the cost comparison against wider market figures. It says there are 184 electric vehicle models available in Europe, up five-fold compared with five years ago, and that global electric vehicle sales more than doubled in 20211. Germany and Britain led the world's biggest economies in electric vehicle share of new passenger vehicle sales in 2021, at 26% and 22% respectively1. Electric vehicle battery prices have fallen 89% since 2010 and are projected to fall a further 66% by 20351.
| Measure | Britain | Germany |
|---|---|---|
| Average net savings, 14-year lifetime | £8.3k | €7.4k |
| Average net savings with 10% battery value at scrappage | £8.7k | €7.8k |
| Implied national savings over 14 years | £300 billion | €353 billion |
| EV share of new passenger vehicle sales, 2021 | 22% | 26% |
Why it matters for households
The report's central claim is that the savings from running an electric car accrue over the whole ownership period rather than at the point of purchase, where the upfront premium over an equivalent combustion car is the visible cost. For a household weighing electric vehicle charging costs against petrol or diesel running costs, the ECIU's figures put the balance in favour of electric over 14 years, on its assumptions. The report does not break down the savings by component, so how much comes from fuel, servicing, grants or resale is not set out in the material published.
The report links its findings to energy security as well as cost. It states that futures markets indicate continued high and volatile oil, gas and power prices, linked to Covid-19 and Russia's invasion of Ukraine, at least until 2025, and that it expects accelerated investment in electrification of heating and transport as nations place greater value on energy security and reducing cost1. For a household, that framing connects the running cost of a car to the wider question of exposure to volatile fossil fuel prices.
What happens next
The report projects electric vehicle battery prices falling a further 66% by 2035, and expects global electric vehicle sales growth in 2022 similar to the doubling seen in 20211. No further dated steps are set out in the material published.