A comprehensive study published by the International Energy Agency has found that electric vehicle owners save an average of $12,000 over the lifetime of their vehicle compared to equivalent petrol car owners, providing compelling economic evidence for the transition to electric mobility. The research, which analysed data from over 50 countries and 2 million vehicles, represents the most extensive cost comparison ever conducted.

The savings breakdown reveals that fuel costs account for the largest portion of the difference, with EV owners spending approximately 60 to 70 percent less on energy than their petrol counterparts. Based on average driving patterns of 15,000 kilometres per year, an electric vehicle owner spends roughly $500 annually on electricity compared to $1,800 on petrol. Over a typical 15-year vehicle ownership period, fuel savings alone amount to nearly $20,000.

Maintenance costs represent the second largest area of savings. Electric vehicles have significantly fewer mechanical components than internal combustion engines, eliminating the need for oil changes, transmission servicing, spark plug replacements, and exhaust system repairs. The study found average annual maintenance costs of $400 for EVs compared to $900 for petrol vehicles, generating an additional $7,500 in savings over the vehicle lifetime.

Government incentives, including purchase subsidies, tax credits, reduced registration fees, and free parking in many cities, contribute an average of $3,000 in additional savings, though this varies significantly by country. The study noted that the total cost of ownership gap is widening each year as battery prices continue to fall and charging infrastructure becomes more accessible. Insurance costs for EVs remain slightly higher than for comparable petrol vehicles, partially offsetting other savings, but this gap is narrowing as insurers gain more data on EV accident rates and repair costs.