Study Shows That Electric Cars Will Cost Less Than Combustion Engine Vehicles By 2027

With Electric Cars Being Cheaper Than Internal Combustion Vehicles in 2027, In Addition Fuel Economy, Environmental Benefits Will Be Generated

The moment of popularization of electric cars is approaching and, according to a study by BNEF – Bloomberg New Energy Finance, electric vehicles and utilities will cost less to build than cars with internal combustion engines by 2027. Depending on the category and model, electric cars could represent 100% of new vehicle sales in the European Union (EU) by 2035. See also: Electric Cars in Brazil: How is the Market in 2021

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The Electric Vehicle Market and Its Growth in Recent Years in the EU

The EU has set very strict goals to reduce carbon emissions and, with that, aims to decarbonize road transport and encourage the production and commercialization of electric vehicles with an ambitious vision.

However, the study raises questions about to what extent average families or small businesses will be able to invest in the transition to electric vehicles. As far as they know, these electric cars still have a value higher than that of internal combustion engine vehicles, indicated by data from the study conducted by BNEF.

Electric vehicle sales have increased, and the growth trend in the sector is ever greater, as, in fact, the willingness of countries around the world (especially EU countries) to meet their goals in the face of climate change and the willingness of brands have largely promoted this shift from internal combustion vehicles to electric cars.

Europe Will Achieve Transition from Internal Combustion Vehicles to Electric Cars

BNEF – Bloomberg New Energy Finance, analyzed the opportunities in Europe to achieve a transition from internal combustion vehicles to electric cars. Foro Coches Eléctricos analyzed the main results of this study and the answer is clear; if Europe receives the right political support, the transition is possible.

It is expected that, in the next production cycle, electric cars across all fields will reach the same level as the same model of internal combustion vehicles. In fact, vehicle design, mass production, and expected drops in battery prices will reduce prices to more than one-third of current prices by 2025.

In this regard, continuous technological development related to batteries will reduce prices and increase competition. With this, data shows that between 2020 and 2030, the price per kilowatt-hour will drop by 58%.

Prices of Electric Cars

According to the NGO Transport and Environment, which commissioned the study from BNEF (Bloomberg New Energy Finance), electric sedan and SUV models will be as economical to manufacture as fossil fuel-powered vehicles starting in 2026, and small cars starting in 2027.

Therefore, the forecast indicates that, on average, even before the arrival of potential government subsidies, the purchase price of electric cars will become cheaper. In 2026, the price before taxes of electric vehicles will be equal to the price before taxes of internal combustion vehicles, around €19,000, while the price before taxes of electric vehicles will be around €33,000.

According to this study, the decrease in manufacturing costs can be explained by the fall in battery prices and the development of production lines dedicated to electric vehicles.