Electric vehicles cheaper than combustion by 2027: study

Published May 11, 2021
Light electric vans will be less expensive than diesel models from 2025, and heavy electric vans from 2026. — AFP/File
Light electric vans will be less expensive than diesel models from 2025, and heavy electric vans from 2026. — AFP/File

PARIS: Electric cars will be cheaper to build than fossil fuel vehicles across Europe within six years and could represent 100 per cent of new sales by 2035, according to a study published on Monday.

Carmakers are shifting en masse to electric and hybrid models in order to bring average fleet emissions under a European Union limit of 95 grams of carbon dioxide per kilometre, or face heavy penalties.

The study by Bloomberg New Energy Finance found that electric sedans and sport-utility vehicles will be as cheap to make as combustion vehicles from 2026.

Small cars will have to wait until 2027 to match the cost of fossil fuel models, according the study, which was commissioned by Transport and Environment, a European clean transport campaign group.

Light electric vans will be less expensive than diesel models from 2025, and heavy electric vans from 2026.

“EVs will be a reality for all new buyers within six years,” Julia Poliscanova, senior director for vehicles and e-mobility at Transport and Environment, said in a statement.

“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,” Poliscanova said.

A drop in the cost of batteries and the use of production lines dedicated to making electric vehicles will make them cheaper to buy, on average, even before subsidies, according to the study.

An electric sedan, which cost nearly 40,000 euros ($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.

Electric cars will represent 50 per cent of new sales by 2030 and 85pc by 2035 if policies remain the same.

But they could reach 100pc by 2035 “if lawmakers increase vehicle CO2 targets and ramp up other policies to stimulate the market such as a faster roll-out of charging points”, the NGO said.

Published in Dawn, May 11th, 2021

Opinion

Editorial

Stock market carnage
Updated 04 Dec 2021

Stock market carnage

PAKISTAN’S stock market has been on a downward ride for the last several months as a result of deteriorating...
04 Dec 2021

Omicron threat

THE NCOC has suggested installing more oxygen plants in various parts of the country as the new Covid-19 variant,...
04 Dec 2021

UK spymaster speaks

A RECENT speech by the chief of MI6 — the UK’s external intelligence agency — provided a key insight into the...
Crime against humanity
Updated 03 Dec 2021

Crime against humanity

The government has yet to fulfil its long-standing pledge to criminalise enforced disappearances.
03 Dec 2021

Revised valuations

THE revised property valuations notified by the FBR for 40 cities for the purpose of collecting federal taxes —...
03 Dec 2021

PWD await rights

ON the International Day of Disabled Persons, it is important to take stock of how far Pakistan has come in ensuring...