Paris: A study published on Monday showed that electric vehicles will be cheaper than fossil fuel vehicles in Europe within six years, and may account for 100% of new sales by 2035.
Automakers are shifting heavily to electric and hybrid models to keep average fleet emissions below the EU’s limit of 95 grams of carbon dioxide per kilometer, or face severe fines.
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.
This study shows that the decline in battery costs and the use of production lines dedicated to the manufacture of electric vehicles, on average, will lower their purchase prices even before subsidies.
Research shows that by 2020, the pre-tax cost of an electric car will be close to 40,000 euros ($49,000) and is expected to be sold at the same price as the combustion model-about 20,000 euros-in 2026.
If the policy remains unchanged, electric vehicles will account for 50% of new sales by 2030 and 85% by 2035.
NGOs say that if legislators increase vehicle carbon dioxide emissions targets and strengthen other market-stimulating policies, such as the faster launch of charging stations, the carbon emissions target may reach 100% by 2035.