Price and insfrastructure are the two biggest hurdles in mass adoption of electric vehicles (EV). Some countries already have their charging infrastructure in check such as Norway, but EVs in general still cost significantly more than their internal combustion engine (ICE) counterparts. For the public to fully embrace EVs, prices must be brought down to levels that are comparable to ICE vehicles. This could probably happen by 2027, at least in Europe.
A study released by BloombergNEF, reported by The Guardian, says that by 2026, production costs of larger EVs such as sedans and SUVs could reach the same level as ICE cars. By the following year, production costs could eventually be lower than ICE cars. This is an important threshold to reach in order for EVs to reach mainsteam status.
Government regulations worldwide are pushing to ban ICE cars by 2030 at the very least, forcing automakers to make huge investments in its transition to EVs. Mass production of electric cars, along with the falling cost of batteries, is going to be the primary drivers of its falling prices. Economies of scale will eventually make electric vehicles affordable.
The Guardian also says that the current average pre-tax retail price of a medium-sized electric car is €33,300 (around P1.9 million), compared with €18,600 (around P1.03 million) for an ICE car, according to the research. In 2026, both are forecast to cost about €19,000 (around P1.1 million).
Batteries are singlehandedly the most expensive component in an electric car, even more so to models with longer range. According to a study commissioned by Transport & Environment, battery prices could fall by 58 percent in the next decade, and this could be the turning point we are looking for in mass adoption of EVs.
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