Electric vehicles ‘cheaper’ to produce than petrol or diesel cars by 2027
12 May 2021
Electric vehicles (EVs) will be cheaper to produce than fossil-fuels powered cars and vans by 2027, new analysis reveals.
According to a BloombergNEF study commissioned by Brussels-based Transport & Environment, tighter emissions regulations are set to increase the sale of EVs and electric Sedans and SUVs are also set to be as cheap as petrol and diesel vehicles by 2026.
Within the next six years, an anticipated drop in the cost of batteries and the use of production lines dedicated to making electric vehicles will make them easier to produce and cheaper to buy on average, even before subsidies.
Battery electric vehicles are set to reach 100 per cent of new sales across the European Union (EU) by 2035.
But the rise in electric cars will only grow rapidly if lawmakers introduce tighter vehicle carbon dioxide (CO2) targets and encourage strong support for changing infrastructure, according to the study.
In order to secure the rise of EV’s, Transport & Environment is calling on the EU to tighten emissions targets throughout the decade and set 2035 as the end date for the sale of new fossil fuel-emitting vehicles.
“EVs are not only better for the climate and Europe’s industrial leadership, but for the economy too,” Senior Director for Vehicles and E-mobility at Transport & Environment Julio Poliscanova said.
Electric Vehicle sales
Global sales of EVs accelerated in 2020, rising to 43 per cent to more than 3 million, despite the overall sale of cars slumping by a fifth during the Covid-19 pandemic.
Sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) made up a total of 4.2 per cent of the global car market.
The growing sales in EVs presents a number of opportunities for climate mitigation and public health outcomes, including reducing emissions and improving air quality.
However, Tadhg O’Mahony of the Finland Futures Research Centre told the Joint Oireachtas Committee on Climate Action in February that relying on EVs to meet newly ramped up emissions reductions is a “risky and potentially costly gamble”.
Depending solely on electric vehicles to drive down transport emissions would “deepen many of the sustainability challenges associate with our transport system,” he said.
Story by Shauna Burdis