Electric car cost will be cheaper than combustion engines in the next six years
The cost of building electric cars will match and then go lower than the cost of building a fossil engine car in the next six years. This is according to a study by Bloomberg New Energy Finance and commissioned by Transport and Environment.
Light electric vans will be less expensive than diesel models from 2025, and heavy electric vans from 2026.
Sedans and sports-utility vehicles will match their fossil-fuel counterparts in cost of production as early as 2026. Smaller cars are expected to catch up in 2027.
This means that the price of electric cars will be lower than those of combustion engines in Europe in the next ten years.
“EVs will be a reality for all new buyers within six years. They will be cheaper than combustion engines for everyone, from the man with a van in Berlin to the family living in the Romanian countryside,” Julia Poliscanova, senior director for vehicles and e-mobility at Transport and Environment, said in a statement.
Current European Union regulations limit vehicles to emissions of 95 grams of carbon dioxide per kilometre or face heavy penalties.
If the policies remain the same, then electric cars will represent 50 percent of new car sales in Europe by 2030 and 85 percent by 2035. Stricter policies may see 100 percent new car sales within the same timeline, according to Transport and Environment.
An electric sedan, which cost nearly 40,000 euros (USD 49,000) pre-tax in 2020, is expected to sell at the same price as a combustion model – around 20,000 euros – in 2026, the study showed. Almost every combustion car company is now transforming into an electric car company today so as not to be left behind the technological revolution.
In Kenya, power distributor Kenya Power recently unveiled plans to roll out electric vehicle charging points to expand revenues streams and boost demand for cars that don’t use petrol and diesel. The electricity distributor said in March it would build a nationwide network of public charging points.
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