When will electric cars cost the same as regular cars?

By 2030, the cost of a more compact one will drop to 16 euros, experts say.

By 2030, electric vehicles will continue to be significantly more expensive than conventional internal combustion engines. This conclusion was reached by experts from the consulting agency Oliver Wyman, which prepared a report for the Financial Times.

In particular, they point to the fact that by the beginning of the next decade, the average cost of producing a compact electric vehicle will fall by more than a fifth to 1. This will be 9% more expensive than producing gasoline or diesel vehicles. The study identified a significant threat for manufacturers such as Volkswagen and the PSA Group to make lower margins.

At the same time, according to numerous forecasts, the price of the most expensive component of an electric car, the battery, will almost halve in the coming years. The report says that by 2030, the cost of a 50 kilowatt-hour battery will fall from the current 8000 to 4300 euros. This will happen due to the launch of several factories for the production of batteries, and a gradual increase in their capacity will inevitably lead to a decrease in the cost of batteries. Analysts also mention potential technological breakthroughs such as the growing use of solid-state batteries, a technology they are still developing.

Currently, some compact electric vehicles are available in the European and Chinese markets at lower prices than internal combustion engines, despite their higher cost. However, this is due to government programs to subsidize clean transport.