Electric cars will be cheaper than conventional cars by 2027

According to a recent Bloomberg NEF study, the price of electric cars and light trucks, i.e. those not exceeding 1700 kg, will be cheaper than conventional ones by 2027 at the latest.

The study was executed by the initiative of the European Federation of Transport and Environment (T&E). In conclusion, electric car sales are likely to reach 100% across the European Union by 2035 under 2 conditions: a) legislation imposes stricter limits on CO2 emission prices and b) produces satisfactory support for the creation of the necessary battery recharging infrastructure.

The European Federation of Transport and Environment (T&E) made recommendations to the European Union. In particular, they proposed tightening the emission reduction targets, which apply from 2020, and setting as a limit the end of sales of new cars powered by fossil fuels in the year 2035.

At the same time, in 2026, electric sedan-type cars, i.e. categories C and D, and SUVs will compete in sales prices with the corresponding conventional gasoline or diesel-powered cars. In 2027, the same will happen with small passenger cars of category B. Also, until 2025 light vans will become cheaper than diesel ones.

The main reason for the price reduction is due to the low cost of the battery price, the new architectural platforms for the manufacture of electric cars as well as the creation of new industrial production lines of exclusively electric cars.

Electric cars of all categories can make up all new car sales by 2035 in both Southern and Eastern Europe. This may very well happen if the right decisions are made and implemented to limit CO2 emissions and are accompanied by incentives and support for the creation of infrastructure to support electrification. If this does not happen and there is no market intervention, then the target quota on new sales will not be met and Europe will meet its decarbonisation target by 2050.

Finally, just as important is the fact that the European Commission must set a final date beyond which sales of new cars powered by fossil fuels will no longer be allowed within June 2021. At this stage, seven car manufacturers and ten European states have already announced that they are studying the timing of implementing measures to ban cars with internal combustion engines that run on fossil fuels so that the goal is reached as soon as possible.