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

Politics of the budget
12 Jun 2021

Politics of the budget

The PTI government is essentially following the same trajectory: spend, spend, spend and worry about how to pay for it later...
Federal features
12 Jun 2021

Federal features

At the core of the concept of federalism is sharing of power...
Missing gender
12 Jun 2021

Missing gender

Censorship in science raises many questions....
Learning and follow-up
Updated 11 Jun 2021

Learning and follow-up

Creating learning and feedback loops is important to reduce accidents, but this aspect remains missing in most organisations.

Editorial

12 Jun 2021

Feel-good budget

WE have been here before. Every time a government gets some fiscal space it immediately shifts gears to growth,...
12 Jun 2021

Rep Omar’s tweet

CONGRESSWOMAN Ilhan Omar’s comparison of Hamas and the Afghan Taliban with the US and Israel has raised a media...
12 Jun 2021

Poor health indicators

IF the coronavirus has taught the world anything, it is that the old maxim ‘health is wealth’ is true. Though...
Changing course
11 Jun 2021

Changing course

Tarin says govt, IMF want sustainable economic growth, but both disagree on the path Islamabad must take to attain the objective.
11 Jun 2021

Political bartering

IN what appears to be a continuation of the unsavoury wheeling and dealing that is characteristic of Senate...
11 Jun 2021

Baghlan massacre

FEARS that Afghanistan will plunge into a torrid whirlpool of violence once all Western troops leave in September...