E-Cars Cheaper Than Petrol Cars: ICCT Study 2025

Data Basis: 100,000 Vehicles in Germany

For the study, the ICCT evaluated price data from around 100,000 vehicles on the German car market, the largest in Europe. According to this, the purchase costs of battery-powered cars in the three highest-volume vehicle segments in 2025 were roughly on par with comparable petrol cars. This shifts a key purchasing argument in favor of electric mobility.

In addition to the purchase price, running costs are coming into focus. Electricity in Europe is cheaper than petrol depending on region and tariff, and there are lower maintenance costs because electric cars have fewer wear-prone parts. In total, this results in a cost advantage when driving compared with combustion engines, according to ICCT calculations.

Despite the positive overall trend, the report points to differences between individual markets. Electricity prices, subsidy programs, and taxes vary considerably across EU states. The concrete cost advantage for consumers therefore also depends on the respective country.

Running Costs as the Central Advantage

Peter Mock, also from the ICCT, emphasizes that the study reflects the current state of technology. Falling battery prices and a growing manufacturing base are likely to further push down the total cost of ownership of electric cars in the coming years. This could increase the cost advantage over petrol cars.

For the auto industry, the development is strategically significant. Manufacturers that align their model ranges more strongly toward electric cars will prospectively benefit from growing demand. Conversely, vendors with a high share of combustion engines are under pressure to adapt their electrification strategies.

Implications for Industry and EU Policy

Politically, the EU supports the ramp-up of electric mobility with CO2 limits for new cars and with requirements for the expansion of charging infrastructure. The study suggests that cost developments now complement this policy and make the switch financially more attractive for buyers.

However, the report also sees risks: if electricity prices fluctuate sharply or subsidies are cut, the cost advantage when driving could shrink again. The researchers therefore recommend continuing current subsidy policies and consistently advancing the expansion of renewable energies.

Overall, the analysis paints a picture of increasing economic parity between electric cars and combustion engines in Europe. While isolated differences in purchase price still existed in 2025, operation according to ICCT calculations is already cheaper in several European markets.