Electromobility is no longer just "about emissions". For CFOs and ESG managers today, the key question to answer is: when EVs actually save money and when they make mobility more expensive. In cities, TCO (Total Cost of Ownership) often goes down due to cheap charging, predictable operation and parking or regulatory benefits. Outside of cities, however (especially on highway and regional routes), TCO can rise - due to higher consumption at higher speeds, more expensive DC charging, and risks around residual value.

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In the article we explain:

What exactly constitutes TCO for EVs,
why the urban and extra-urban cost profiles "diverge",
what data and benchmarks to follow,
and what to do to make EVs make financial sense outside the city.

What is TCO and why is it more sensitive for EVs than for internal combustion engines

TCO = total cost of ownership/use of the vehicle over the selected period (typically 36-60 months) including all "hidden" items.

The main TCO items (practically for CFOs)

Depreciation/depreciation (depreciation): the difference between the purchase price and the residual value (RV)
Financing: interest, fees, committed capital (for ownership)
Energy: electricity (AC/DC) or fuel (ICE)
Service and maintenance: inspections, brakes, fluids, breakdowns
Tyres: wear, seasonal changes, storage
Insurance: PZP, accident, additional insurances
Taxes and fees: MV tax, parking, toll/toll, local regulations
Operational risks: unplanned outages, waiting times for charging (time = money)

Why EV TCO is more sensitive:

EVs often have a higher purchase price → more "weighted" by depreciation and RV.
Energy can be cheap (AC) or very expensive (DC) - the difference in €/kWh makes a big difference in €/100km.
Driving profile (city vs highway) changes consumption significantly.

Why the TCO of EVs in cities is falling

1) Urban profile = lower consumption and the advantage of recuperation

In the city EVs benefit from:

Brake regeneration,
lower speeds,
less aerodynamic drag.

Result: city consumption is typically lower than highway consumption (for the same car).

2) AC charging (depot/home/work) is many times cheaper than DC fast charging

The key is where and how often you charge:

AC (depot, business, home/work): more stable prices, often the cheapest power source
DC (public fast charging): higher price per kWh + sometimes time charges

Mini calculation: energy in the city vs. outside the city (illustrative benchmark)

Assumptions (conservative, rounded):

EV consumption in the city: 16 kWh/100 km
EV consumption outside the city/highway: 23 kWh/100 km
AC electricity price (EU non-household benchmark): 0.19 €/kWh
DC public charging price (SK, ultra-fast): 0.69 €/kWh

Scenario	Consumption	Price	Cost per 100 km
City (AC)	16 kWh	0,19 €/kWh	3,04 €
Out of town (DC)	23 kWh	0,69 €/kWh	15,87 €

The takeaway: if a vehicle in the city charges predominantly AC (depot/work), the energy becomes a very strong "driver" of savings. However, if it relies on DC outside the city, energy can be more expensive even than with an efficient diesel.

3) Parking and urban benefits

Some cities are introducing rebates for zero-emission vehicles (e.g. parking). While this alone won't decide TCO, high-frequency downtown parking can make a measurable difference.

4) Urban regulations and ESG (indirect financial benefits)

Growing pressure for green fleet policies and reporting (Scope 1/2/3)
Reputational and tender points (ESG scoring in procurement)
Readiness for low emission zones (where incinerators can be progressively restricted)

Why EV TCO outside cities is rising

1) Highway = higher consumption (and often significantly higher in winter)

Consumption rises at higher speeds mainly due to aerodynamic drag. In practice this means:

higher kWh/100 km,
shorter range,
more frequent charging.

2) DC charging is more expensive and the "price of convenience" increases with kilometres

Outside of cities there is a more frequent need:

Quick recharge (DC),
charge at peak times and when travelling (higher price level),
time costs (waiting, planning, route deviations).

CFO rule: the more % charging from public DC, the more volatility and TCO risk increases.

3) Higher annual mileage = higher energy, tire and RV sensitivity

Non-urban fleets often have:

Higher annual mileage,
more highway,
more DC charging.

This increases:

Energy costs,
tire wear (EVs are generally heavier, high torque),
risk of dropping residual value (RV) at high mileage.

4) The residual value (RV) of EVs is still a "live topic"

For CFOs, RV in EVs is critical because:

The used EV market is changing rapidly (technology, range, charging speed),
new EV prices are falling, pushing down used prices,
volatility is higher in some segments than in ICE.

Implication: for out-of-town profiles, TCO can be significantly affected just by depreciation and RV risk.

Urban mobility vs. regional mobility: when EV wins (and when it doesn't)

Typical profiles where EVs typically reduce TCO

Urban/agglomeration, up to 150-250 km per day
Parking and short trips (service cars, sales reps in town)
Available AC charging at business or home
Stable driving rhythm (predictable charging windows)

Profiles where EV often increases TCO (no policy adjustments)

Highway routes with a high proportion of 130 km/h
Daily mileage of 300-600 km without self charging en route
Dependence on public DC (especially ultrafast)
Winter operation + frequent fast charging (consumption and time)

CFO checklist: how to make a "fair" TCO comparison

1) Collect data according to real-world driving profile

Divide km into: city / out of town / highway
average speed, standing times
seasonality (winter vs summer)

2) Calculate TCO in scenarios (not single number)

Recommended scenarios:

Best case: 70-90% AC charging
Real case: mix AC/DC
Worst case: mostly DC, high mileage

3) Include "time" in charging in TCO (for selected roles)

For fleets with high hourly labor rates (service, technicians, sales), time at charge can be significant.

4) Address RV risk with contract and remarketing

Prefer models with good market liquidity
set up contract and ramp up to minimize RV shock
For selected vehicles, consider shorter cycles or flexible leases

How AVIS can help you reduce EV TCO (especially outside cities)

1) The right mobility mix: EV where it wins + alternative where it doesn't yet make sense

EVs are not mandatory "everywhere". A mix will often yield the best result:

EV for urban and suburban roles
hybrid / fuel efficient diesel for highway and high mileage roles (until infrastructure and pricing changes)

2) Contract setup according to mileage and risk

Clear km limits and transparent surcharges
Service package to control costs
Support in choosing the right model and battery

3) Fleet policy: charging as part of financial strategy

Recommendation on where to charge (AC vs DC) and when
internal charging and reimbursement rules
Reporting for ESG and internal approval

2025-2026 trends that will change TCO

Rapid growth of public infrastructure (mandatory building on TEN-T corridors in the EU)
Gradual stabilisation of electricity prices for companies (Eurostat benchmarks)
Continued pressures on residual values and the second-hand market
More corporate fleets in EVs → more data, more standardisation of TCO models

Frequently asked questions (FAQ)

1) Is an EV always cheaper in TCO than a diesel? No. In the city, often yes (especially with AC charging). With a highway profile and dependence on DC, EV can be more expensive.

2) What is the biggest "game changer" for EV TCO? Proportion of cheap charging (AC) and residual value (RV). These two items can make the difference.

3) Does EVs make sense for merchants outside of cities? Yes, if they have regular routes and access to AC charging (home/business/hotel). If they charge primarily DC, TCO goes up.

4) How fast does the RV change with EVs? It is more volatile than ICE in some segments - so model choice, contract length and remarketing are important.

5) Will low emission zones help financially? Indirectly, yes - they reduce regulatory risk and can favor zero-emission fleets in cities.

TL;DR (summary)

EV TCO in cities goes down if most charging is done cheaply (AC) and the driving profile is urban.
Outside cities TCO rises when consumption (highway) and the proportion of expensive DC charging increases.
Biggest "levers": price and type of charging (AC/DC) + residual value (RV).
CFO should calculate scenarios, not one number.
A mix of fleets and the right contracts and charging strategy will often yield the optimal outcome.

Keywords and entities (used in the text)

Key KW: TCO, EV, urban mobility

Related KWs and entities: EV, total cost of ownership, residual value (RV), depreciation, operating lease, long-term lease, AC charging, DC fast charging, €/kWh, kWh/100 km, recuperation, highway profile, low emission zones, TEN-T, public charging infrastructure, corporate fleet, fleet policy, ESG, Scope 1/2/3.

Conclusion

If you want to know if EVs are worth the TCO according to your real-world driving profile, we will prepare a comparison (EV vs. hybrid vs. diesel) including charging scenarios and RV risk.

Contact AVIS to request a TCO calculation for your fleet (city vs. region) - with recommendations for appropriate models and contract setup.

Why the TCO of EVs is falling in cities but rising outside them