EVs to be cheaper than fossil fuel models by 2027

Electric vehicles (EVs) will be cheaper to make than fossil fuel models across Europe by 2027, Bloomberg New Energy Finance analysis suggests.

Falling battery costs, new designs and dedicated EV production lines are expected to bring manufacturing costs below those of fossil fuel models. The findings suggest EVs could account for all new car sales by 2035 if governments introduce stronger emissions targets and support charging infrastructure.

Transport and Environment, which commissioned the research, called on the EU to tighten emissions targets in the 2020s, and to make 2035 the end date for selling new polluting vehicles. Senior director for vehicles and emobility, Julia Poliscanova, said: “With the right policies, battery electric cars and vans can reach 100% of sales by 2035 in western, southern and even eastern Europe.”

Meanwhile, separate research commissioned by Centrica Business Solutions has found that UK firms spent £10.5bn on EVs and on-site charging points in the past 12 months, and that this is set to increase by 50% to £15.8bn over the next year. Meeting corporate sustainability targets is the biggest driving factor, followed by reducing disruption caused by low and zero-emission zones. Two-thirds of companies are now “well-prepared” to operate a fully electric fleet by 2030.

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