According to a new study, the cost of ownership for electric cars is much more than that of comparable diesel engine powered vehicles.

The new study by British Vehicle Rental and Leasing Association's Business Guide to Electric Vehicles showed that total cost of ownership for Nissan Leaf e-car is about £5,000 greater than an equivalent VW Golf BlueMotion 1.6 TDI over a period of three years and 36,000 miles.

The figure is significant as it is derived after considering government's plug-in car grant. The team predicted the figure after estimating running costs of the vehicles if used as company cars. The study claims that the cost of ownership for Leaf over the three year period is £23,848.

The total cost of ownership for Golf came to £18,77 over the three year period. The figue is derived after taking into account the depreciation, interest charged on the capital cost of the vehicle, insurance, maintenance and fuel cost.

Tehamjor factors causing high cost of ownership for Leaf are its high initial purchase price and its depreciation. The car is indeed better in fuel costs offering 2 pence per mile versus the Golf's 11.9p per mile. However, diesel cars work out to be much cheaper to own overall.

BVRLA chief executive John Lewis said, "More than a dozen new electric and hybrid vehicles are set to hit the UK market over the next year, but most of them will be decorating showrooms unless manufacturers are more realistic on pricing. Ultra-low carbon transport is a necessity and electric vehicles have a big part to play in getting us there, but these vehicles are simply too expensive for most fleets at the moment."