August 1, 2021

Electric cars will cost the same as combustion cars from 2025

The (present) future of the automobile segment seems to be unavoidably electric. Brands have followed this trend and the offers are increasing.

ZERO recently released a European study that puts 100% electric cars at the same price as conventional cars from 2025 onwards and 18% cheaper in 2030.

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Price of Batteries and Mounting Platform Will Lower Value of Electric Cars

The fall in the price of batteries and the shift to manufacturing platforms dedicated to electric vehicles by builders will allow for major reductions in production costs.

For Europe to meet its climate and environmental commitments to reduce emissions and zero pollution, the full electrification of cars, through 100% battery-electric cars or hydrogen fuel cells, will have to take place quickly.

From a climate, industrial and buyer perspective, pure electric light passenger and goods vehicles are the technology of the future.

The recently published study by the European Federation of Transport and Environment reveals that between 2025 and 2027, battery-powered electric cars will reach the same price as fossil fuel-equivalent models, and will not depend on incentives to do so. By 2030, electric cars will even be 18% cheaper at the base price than those with a combustion engine.

The price drop will happen for two reasons:

  • the drop in the price of batteries, which is expected to be 60% over the decade – from 120 €/kWh in 2020 to around 50 €/kWh in 2030. The value of 100 dollars per kWh of storage capacity, equivalent to around 80 €/kWh, considered a key point for the accessibility of trams in terms of price, will be reached in 2024
  • a switch to dedicated electrical manufacturing platforms by construction companies, allowing the production of electrical models with other architectures, which will reduce costs by 10-30% thanks to scale factors, simpler assembly processes, battery packs and other standardized components, and the sharing of the same chassis between models