While some manufacturers are doing everything they can to offer increasingly affordable electric vehicles, closing the gap with traditional vehicles, fleet managers are finding battery-powered cars less appealing. This is evident in the Mobility Guide 2024 published by Ayvens, a subsidiary of Société Générale specializing in fleet rental and management for businesses. In Europe, the Total Cost of Ownership (TCO) for electric vehicles remains favorable compared to traditional vehicles, but in countries like France, Sweden, and Spain, it has increased.
The curve has indeed reversed from last year, with a TCO of €0.45 per kilometer for an electric car, slightly higher than the €0.43/km for a traditional vehicle. This average is based on 48-month/120,000 km contracts. The reasons for this turnaround are twofold according to Ayvens. The first reason is the discontinuation of the ecological bonus for businesses in February, which mechanically raised the vehicle’s cost. Another reason is the increase in energy prices, which impact business bills. However, the study does not address the issue of residual value, which is lower for electric vehicles than traditional ones, further negatively affecting TCO in the future.
In general, according to Ayvens’ report, France is still among the “developed” countries in electric vehicle adoption, although it ranks lower compared to Norway, the Netherlands, Finland, Belgium, Luxembourg, and Sweden. France’s score is 60, the same as Portugal, with a focus on TCO affecting the overall score, along with average ratings regarding charging infrastructure, and poor ratings for taxation policies. However, France earns points for its wide range of electric vehicles and access to renewable electricity. There is still room for improvement!