European EVs Outperform Gas Cars on Running Costs, Even via Public Charging

Electric vehicles in Europe are now substantially more affordable to operate than internal combustion engine (ICE) cars, according to new research from the International Council on Clean Transportation (ICCT). The findings indicate that the financial advantage of electrification now extends beyond homeowners to include urban drivers who rely entirely on public infrastructure.

Data from the 2024/2025 period reveals that EVs utilizing a combination of home and public charging were 33% cheaper to run than gasoline vehicles. Crucially, the cost advantage persists for those without private garages; EVs relying exclusively on public charging remained 28% cheaper to operate than comparable gas-powered cars. Marie Rajon Bernard, ICCT senior researcher and lead author, noted that these savings are "hard to ignore" for European drivers.

The Shift in Purchase Prices

While the median price of new EVs has risen by 42%—driven largely by the introduction of high-performance luxury models—the broader market is trending toward affordability. Between 2020 and 2025, inflation-adjusted EV prices decreased by approximately 18%, whereas combustion car prices rose by 2% over the same period.

This shift is underpinned by a 35% drop in global battery prices over the last five years. Consequently, EVs have reached price parity with ICE vehicles in the luxury, upper-medium, and medium segments. In Germany, the market expanded to roughly 160 passenger EV offerings by 2025, including approximately 35 models priced below €30,000, such as the Dacia Spring.

Infrastructure and Market Impact

The economic viability of EVs is supported by a massive expansion of charging networks. The European Union now hosts nearly 1.2 million public chargers for cars, representing an eight-fold increase since 2020. This growth coincides with high regional fuel costs, with gasoline averaging roughly €2 per liter, further incentivizing the transition.

These findings are significant because they dismantle a primary psychological barrier to adoption: the belief that EVs are only economical for those with home charging. By proving that public charging still offers a clear financial edge over gasoline, the ICCT research removes a major hurdle for apartment renters and city dwellers, which is likely to accelerate mass adoption across the EU.

Future Outlook

As battery costs continue to decline and the variety of budget-friendly models grows, the "democratization" of electric mobility is expected to intensify. Industry observers will be watching to see if this cost advantage triggers a sharper decline in ICE sales among lower-income brackets, where the initial purchase price has historically been the primary deterrent.