Electric Cars Are About To Get MUCH Cheaper

Industry News / 23 Comments

Soon, an EV will be the only sensible vehicle choice.

While the demise of internal combustion engines isn't here yet, it's not as far away as many traditionalists would like. Electric vehicles have made huge strides in recent years; Audi just built the 100,000th example of its popular e-tron SUV and it's predicted that EV sales will overtake diesels imminently.

For many consumers, the higher upfront price of an EV remains a barrier to switching over but new research suggests that this will change in the next few years. In fact, EVs are expected to be less expensive to make than fossil fuel cars by the year 2027.

2019 2022 Audi e-tron Front Angle View Audi
2019 2022 Audi e-tron Rear Angle View Audi
2019 2022 Audi e-tron Charge Port Audi

According to The Guardian, a current medium-sized EV costs €33,300 ($44,486 at current rates) before tax on average. An equivalent gas-powered car carries a cost of €18,600 ($22,613). By the time 2026 rolls around, both are expected to cost in the region of €19,000 ($23,100). That represents an increase of 2.2% for gas cars but a massive 48% drop for EVs. By 2030, the EV is projected to retail for €16,300 ($19,817) and the gas equivalent €19,900 ($24,194).

There are several factors that will contribute to more affordable EVs in the years to come. Not only are batteries becoming cheaper to produce but dedicated production lines also influence the picture.

2017-2021 Tesla Model 3 Front View Driving Tesla
2017-2021 Tesla Model 3 Side View Driving Tesla
2017-2021 Tesla Model 3 Infotainment System Tesla

According to a study commissioned by a non-profit organization called Transport & Environment (T&E), the cost of new batteries will drop by 58% between 2020 and 2030. This will result in a cost of $58 per kilowatt hour.

"With the right policies, battery-electric cars and vans can reach 100% of sales by 2035 in western, southern, and even eastern Europe," said Julia Poliscanova, senior director for vehicles and emobility at T&E.

Already, the UK has moved to ban the sale of cars with combustion engines by 2030. A simplified and more convenient charging experience combined with lower battery production costs have made this 2030 deadline seem more and more realistic with each passing day.

Side View Volkswagen
Rear-Facing View Volkswagen
Charge Port CarBuzz
Source Credits: The Guardian

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