Electric cars now cheaper to lease in much of Europe, Ayvens finds

Battery electric vehicles are rapidly becoming the most cost-effective leasing option across Europe, according to new analysis from Ayvens’ 2026 Car Cost Index.

The study, which examines the total cost of ownership (TCO) for corporate vehicles across 30 European countries, shows that electric cars are now cheaper to lease than petrol and diesel models in a growing number of markets and segments, marking a significant shift in the region’s mobility landscape.

The report finds that in Western and Northern Europe, battery electric vehicles (BEVs) are typically already the lower-cost option when all expenses are considered. Southern Europe is also catching up, with electric models becoming increasingly competitive against internal combustion engine (ICE) vehicles.

In the premium segment, the shift is particularly pronounced. The battery-electric BMW i4 is now cheaper to run than the petrol-powered BMW 3 Series in 20 out of 30 countries analysed, highlighting how electrification is reshaping cost dynamics at the higher end of the market.

Even in smaller vehicle categories, BEVs are gaining ground, proving cost-competitive in 17 countries in the sub-compact segment.

Ayvens’ analysis is based on a standard four-year operational lease with annual mileage of 30,000 km, using data from the fourth quarter of 2025. It incorporates all major cost components, including depreciation, maintenance, energy or fuel, taxes, and insurance.

The findings underline that headline lease prices alone can be misleading. When energy savings, lower maintenance costs, and incentives are factored in, electric vehicles often emerge as the more economical choice over time.

The study highlights wide variations in vehicle costs across Europe. Portugal and Belgium are identified as the most affordable countries for driving a BEV, while Switzerland remains the most expensive market overall, regardless of powertrain.

Across all vehicle types, leasing costs have risen by around 2% since 2023, driven mainly by higher depreciation, although this has been partly offset by lower fuel and energy costs.

The findings carry important implications for corporate fleet operators. Ayvens says businesses should focus on total cost of ownership rather than upfront lease rates and tailor their strategies to regional market conditions.

While Northern and Western Europe lead on affordability, the financial case for electrification is strengthening in countries such as Portugal and Spain. The report also suggests that prioritising electrification in mid-to-premium segments may deliver the fastest returns.