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Electric cars to become cheaper than petrol and diesel cars in 5 years

Electric cars are the future of public transportation. There are some electric cars available in our Indian market too but they much more money when compared to their ICE counterpart. For instance, Tata Nexon starts at Rs. 7.09 lakhs ex-showroom and the top-end variant costs Rs. 12.79 lakhs ex-showroom. Whereas, the Nexon EV’s base variant costs Rs. 13.99 lakhs ex-showroom and the top-end variant costs Rs. 16.39 lakhs ex-showroom. So, there is quite a bit of difference between both vehicles. According to new research done by a Brussels-based non-profit organisation says that the prices of battery packs can fall by 58 percent between 2020 and 2030. Because of this, the prices of electric cars would fall quite a bit and they could become cheaper than petrol and diesel cars.

The research says that electric vehicles will become cheaper to produce and tighter emissions regulations can help electric vehicles overtake ICE vehicles in terms of sales by 2027. Electric sedans and SUVs would be as cheap as their ICE counterparts by 2016 while the smaller more affordable electric vehicle s would take an additional year.

The costs of producing batteries for electric vehicles are falling. This and a dedicated production line for electric vehicles at the manufacturing plant would make them make cheaper to buy even before any government subsidies. This is expected to happen in the next six years.

As of now, the average retail price of a medium-sized electric car is €33,300. When compared, a similar-sized ICE vehicle costs €18,600. The research says that by 2026 both the vehicle would cost around €19,000 and by 2030 the same electric car could cost €16,300 that too before tax. While a similar ICE vehicle would cost €19,900.

The battery prices are expected to fall by 58 percent between 2020 and 2030 to $58 per kilowatt-hour. The battery costs are expected to be below $100 per kWh. Because of this people would be more attracted towards fully electric vehicles instead of hybrids which are combining a conventional petrol engine with a battery to remove emissions and increase fuel economy.

Europe and China saw a major increase in electric vehicles in 2020. Many environmental campaigners are calling the government to introduce even stricter emission regulations which would in return encourage people to buy an electric vehicle instead of a hybrid or ICE vehicle.

The UK government already has plans to ban the sale of new vehicles that run on fossil fuels from 2030. This is quite a big step for the government and a major adaptation would be required for this. The European government has also planned to ban the sale of new ICE vehicles from 2035. Many automotive manufacturers have also set a timeline in which they will be going fully electric.

Julia Poliscanova, T&E’s senior director for vehicles and emobility said, “With the right policies, battery electric cars and vans can reach 100% of sales by 2035 in western, southern and even eastern Europe. The EU can set an end date in 2035 in the certainty that the market is ready. New polluting vehicles shouldn’t be sold for any longer than necessary,” She added stricter CO2 targets were needed to accelerate the switch to electric vehicles.

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