Electric Vehicles Might Get Cheaper Than Traditional Cars Sooner Than You Think

Electric Vehicles Might Get Cheaper Than Traditional Cars Sooner Than You Think
Andrew Rummer

over 2 years ago1 min

The purchase price of an electric vehicle (EV) is forecast to drop below that of a traditional gas-fueled automobile within three years, removing a major hurdle to wider EV adoption.

EV battery costs are declining so quickly that the price of a medium-size electric vehicle should by 2024 slip below the $30,000 average sticker price for an equivalent internal combustion vehicle (shown as a horizontal red line on the chart), according to a report last week from BloombergNEF. Amazingly, those figures don’t include government subsidies for encouraging EV adoption – and larger, more luxurious vehicles are predicted to hit price parity even sooner.

According to the research, the battery will account for just 13% of a medium-size EV’s purchase price in 2030, down from 29% at the start of the decade. 

EV evangelists have been arguing for years that EVs already work out cheaper to own than traditional cars, once you account for maintenance and fuel. But many consumers still base their purchasing decisions on the up-front cost, hampering sales.

This data suggests a big wave of EV ownership could be coming down the road, benefitting vehicle manufacturers – as well as providers of services like charging stations and battery recycling.



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