Electric cars 'as cheap to buy as petrols and diesels' in five years - BloombergNEF

Mon 10 May 2021 View all news

A new report by BloombergNEF for T&E says that electric cars could be as cheap to buy as petrols and diesels within five years if the right decisions are taken now.

The study looks at the upfront costs of battery electric cars and how fast they can reach 100% sales across all European countries. However,  it warns that failure to make the right decisions now could mean fossil fuel cars will still be sold in 2035.

The study authors note that EVs are considerably cheaper to run, but the high upfront cost of buying them has put them out of reach for many drivers. Their falling cost means they are reaching price parity quickly and, the authors say, the point at which they are no more expensive to buy will be psychologically and financially significant in the battle to decarbonise road transport.

That point will come “no later than 2027” in every light vehicle segment across Europe the study says. But it will only happen if signals are set by lawmakers such as tighter vehicle CO2 targets in the coming years and strong support for charging infrastructure, which will drive investment in EV manufacture.

Commenting on the study, T&E’s senior director for vehicles and e-mobility Julia Poliscanova said: “EVs are the future. 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. Electric vehicles are not only better for the climate and Europe’s industrial leadership, but for the economy too. Given the urgency of tackling climate change, polluting vehicles shouldn’t be sold for any longer than necessary, but for that time to be kept to a minimum, ambitious decisions need to be taken now.”

With negotiations on a new round of CO2 standards for new cars due to start in July, T&E is calling for a new standard for 2027 so that carmakers do not allow sales to stagnate until just before the next target in 2030.

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