What Does an Electric Company Car Really Cost?

The list price of an electric car is usually higher than that of a comparable petrol or diesel model. Yet the list price says little about what a car costs over the years it spends in a fleet. That is why fleets look at the total cost of ownership (TCO): every cost from the day a car is ordered until it leaves the fleet.

_{Sources: Transport & Environment, Heavy, dirty, tardy: Company car electrification lagging behind private market for third year in a row}

Key takeaways

• In 2026, an electric compact company car cost the same as or less than a comparable petrol or diesel car in 19 of 30 European countries.
• Depreciation is the largest cost: around 46% of an electric car’s TCO, against around 32% for a petrol car.
• Energy is where electric cars gain: around 12% of TCO, against around 26% for a petrol car.
• The charging location decides how large that gain is. In Germany, 100 km cost €5.86 when charging at home and €10.12 at a fast charger in 2025.
• Tax rules differ most between countries and are being reduced step by step, for example in Belgium for cars ordered from 2027.

_{Sources: Ayvens, Car Cost Index 2026; Elektroauto-News, Elektroautos tankten 2025 bis zu 56 Prozent günstiger als Verbrenner; BDO, Green mobility: what changes in terms of tax?}

What Goes Into the Total Cost of Ownership of a Company Car?

A TCO calculation brings together depreciation, financing, energy, maintenance and tyres, insurance and taxes. For leased cars, most of these costs are bundled in the monthly lease price, but they are still there. The balance between them is what decides whether an electric car is cheaper or not.

The fleet leasing benchmark from Ayvens compares these costs across 30 European countries, based on a four-year lease and 30,000 km a year. In its 2026 edition, an electric car counted as competitive when its TCO was within 5% of the petrol or diesel equivalent. On that basis, electric cars were competitive in 19 of 30 countries for compact cars, 17 for sub-compacts and 16 for mid-size cars.

_{Sources: Ayvens, Car Cost Index 2026}

In other words, an electric company car is already the cheaper or equal option in more than half of Europe, but not everywhere. Where it lands depends on three things above all: how fast the car loses value, how it is taxed and how it is charged.

Why Does Depreciation Weigh More for Electric Cars?

Depreciation is the largest single cost of any company car, and for electric cars it is larger still. In the Ayvens index, depreciation makes up around 46% of the TCO of an electric car, compared with around 32% for a petrol car. The higher purchase price is one reason. Uncertainty on the used market is another.

Used electric cars still lose value faster than their combustion counterparts. In Germany, a three-year-old electric car with 60,000 km kept 36.9% of its list price on average in September 2025, against 50.1% for a petrol car. For leased cars, that risk is priced into the monthly rate. For owned cars, it shows up when the car is sold.

This trend may soon change

That gap may narrow as buyers on the used car market get better insight into the battery, whose condition is still hard to judge today. In Belgium, the Car-Pass, the mandatory history report when a used car is sold, can show the state of health of the battery from 2026. It expresses the remaining capacity as a percentage, much like the battery health shown on a smartphone.

Batteries also last longer than many buyers expect. On average, an electric car battery loses about 1.8% of its capacity per year and typically lasts 10 to 15 years before it needs replacing. Clear figures on battery condition could therefore support the resale value of used electric cars over time. 

For leased company cars, the effect is indirect. The Car-Pass itself only concerns the sale of used cars, but leased cars usually end up on the used market when the contract ends, and their expected resale value is built into the lease price.

_{Sources: Ayvens, Car Cost Index 2026; Autovista24, Monthly Market Update: BEV residual values continue to drag in September; Car-Pass, The SOH of the battery of a preowned electrical vehicle will appear on the Car-Pass}

Where is the Total Cost Won or Lost?

Energy is where electric cars make up ground. In the Ayvens index, energy accounts for around 12% of the TCO of an electric car, compared with 26% for a petrol car. The ICCT calculated that electric cars were 33% cheaper to drive than petrol cars in the EU in 2025, and that the gap widened when fuel prices rose in 2026.

That advantage is not fixed, however. It depends heavily on where the car is charged. In Germany, driving 100 km cost €5.86 when charging at home in 2025, €8.77 at a public AC charger and €10.12 at a fast charger. Diesel cost €8.38 for the same distance. A car that mostly uses fast chargers can therefore lose most of its energy advantage.

_{Sources: Ayvens, Car Cost Index 2026; ICCT, Electric cars are 33% cheaper to drive than gasoline cars; Elektroauto-News, Elektroautos tankten 2025 bis zu 56 Prozent günstiger als Verbrenner}

TCO models usually assume that most charging happens at home or at work. Ayvens, for example, assumes 70% at home, 20% at the office and 10% on public chargers. For a fleet, the closer the real charging pattern comes to that mix, the closer the real costs come to the calculation. Charging at the workplace is also where the employer has the most control over the price: the average electricity price for business consumers in the EU was €0.18 per kWh in the second half of 2025.

_{Sources: Ayvens, Car Cost Index 2026; Eurostat, Non-household electricity prices in 2nd half of 2025: -3.5%}

Home charging brings its own question: how is the electricity used for the company car reimbursed correctly, and at what rate?

Read more about EV charging reimbursement for company cars

How Much Does the Timing of Charging Matter?

Beyond the location, the moment of charging also has a price. Electricity is cheaper at night and on sunny afternoons than in the evening peak. The European energy regulator ACER found that households can save up to €270 a year by switching to a dynamic electricity contract, and that EV owners can save more because they can shift a large part of their consumption.

At a workplace, the timing of charging also affects the site’s grid connection. When many company cars plug in at the same time in the morning, the peak can exceed what the connection allows, which leads to costly upgrades. Spreading charging over the day keeps that peak under control.

_{Sources: ACER, How electricity contract choices can unlock consumer flexibility and lower bills}

Discover what fleet electrification costs you at site level

Why do Taxes Change the Picture From Country to Country?

Taxation is the factor that differs most between countries, and it often decides the outcome on its own. Most European countries favour electric company cars, but each in its own way.

_{Sources: ¹BDO, Green mobility: what changes in terms of tax?; ²Belastingdienst, Bijtelling privégebruik auto 2026; ³Rödl & Partner, Gesetz für ein steuerliches Investitionssofortprogramm zur Stärkung des Wirtschaftsstandorts Deutschland; ³Bundesregierung, E-Autos bleiben bis maximal 2035 von Kfz-Steuer befreit; ⁴Village de la Justice, Avantage en nature véhicule électrique 2026;  ⁴economie.gouv.fr, Entreprises : ce qu’il faut savoir sur les taxes sur l’affectation des véhicules à des fins économiques}

These rules are moving; for example in Belgium:

• The deductibility of fully electric company cars drops from 100% to 95% for cars bought or leased from 1 January 2027 and continues to fall to 90% in 2028 and 82.5% in 2029.
• Cars whose order form or lease contract is signed before 31 December 2026 remain 100% deductible, even if they are delivered in 2027. 

At EU level, the European Commission proposed a Regulation on Clean Corporate Vehicles in December 2025, which would set targets for the share of zero- and low-emission company cars and, from 2028, stop national incentives for company cars that are neither. The proposal is still being negotiated.

_{Sources: Securex, Order your tax-benefit electric vehicles before 1 January 2027; Transport & Environment, EU Regulation on Clean Corporate Vehicles}

What Makes the Difference in Practice?

The choice of car and the national tax rules set the starting point of the TCO. They are largely decided at the moment of ordering. Energy is different: it’s a cost that keeps running for the whole life of the car, and it can be steered every day.

That is why a fleet’s charging strategy deserves as much attention as its car policy. Charging at home and at work rather than at fast chargers, shifting charging to cheaper hours and keeping the workplace connection within its limits all bring the real cost closer to the favourable calculation. Now that electric cars are competitive in more than half of Europe, it is increasingly the charging that decides how large the advantage turns out to be.

Frequently Asked Questions

Is an electric company car cheaper than a petrol one?

In a growing number of European countries, yes. In 2026, electric cars had a total cost of ownership within 5% of, or lower than, comparable combustion cars in 19 of 30 countries for compact cars. The outcome depends on the country’s taxation, the car’s residual value and how the car is charged.

Why do electric cars depreciate faster?

Their higher purchase price and uncertainty on the used car market both play a role. In Germany, a three-year-old electric car kept around 37% of its list price in 2025, compared with around 50% for a petrol car.

How much does the charging location affect the cost of an electric company car?

A great deal. In Germany, driving 100 km cost less than €6 when charging at home in 2025, but around €10 at a fast charger, which was more than the cost of diesel. Charging mainly at home and at work keeps the energy advantage intact.

Will tax rules for electric company cars change?

Yes. Several countries are gradually reducing their incentives, such as Belgium for cars ordered from 2027. At EU level, a proposed regulation would set targets for clean company cars and end incentives for fossil company cars from 2028.