Electric vehicles (EVs) will be cheaper than petrol cars by 2027, according to a new study conducted by Bloomberg NEF and commissioned by Transport & Environment (T&E).
The researchers have said that falling battery costs, new vehicle architecture and dedicated production lines for EVs will make them cheaper to buy, on average, even before subsides.
The study also found that light electric vans will be cheaper than diesel vans from 2025.
However, at the moment, e-vans account for just 2% of sales, T&E has said that this is because weak emissions standards fail to stimulate manufacturers to invest in their supply.
Based on this, T&E has said that lawmakers will need to set challenging CO2 targets and deliver dedicated e-van sales quotos in order to increase investment and increase the number of electric models on the market.
The researchers also found that battery electric cars and vans could reach 100% of new car sales by 2035.
If left to the market without strong additional policies, battery electric cars will reach only an 85% market share, and e-vans just 83%, in the EU by 2035 â€“ missing Europeâ€™s goal to decarbonise by 2050.
However, the early build-up of EV production and sales will be essential to drive down costs and generate consumer buy-in for further adoption in the future.
Julia Poliscanova, senior director for vehicles and emobility at T&E, said: ‘EVs will be a reality for all new buyers within six years. They will be cheaper than combustion engines for everyone, from the man with a van in Berlin to the family living in the Romanian countryside. Electric vehicles are not only better for the climate and Europeâ€™s industrial leadership, but for the economy too.
‘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 shouldnâ€™t be sold for any longer than necessary.’