Electric cars and batteries are now much cheaper to manufacture. Battery electric car prices have dropped notably over the past few years and are expected to reach petrol or diesel cars between 2025 and 2027, and even cheaper soon after.
The average UK driver could save £700 a year in fuel costs by switching to electric, according to New Automotive, which has done various research to accelerate the transition to electric. The price drop is due to improvements in batteries that are poised to get cheaper, as well as automakers producing more EVs.
When will electric car prices get cheaper?
International agreements on climate change are opening the door to a global transition to clean transport, said New Automotive analyst Ben Nelmes. Now the auto industry is designing electric vehicles from the ground up, improving both performance and cost, rather than applying existing design structures known as “platforms”.
European governments have set new targets for manufacturers to sell more EVs and this will help lower prices even further. After the UK government offered tax breaks for EVs in 2019, many electric cars were bought by commercial fleets – taxis, car rental companies or those who own company cars.
EVs may begin to enter the used market as these companies tend to sell electric vehicles after two to three years. It’s also clear that British drivers love to buy second-hand cars: Last year, around 7.5 million used cars and two million new cars changed hands.
But the energy crisis is likely to make charging EVs more expensive. Nelmes, on the other hand, believes there is an opportunity for electricity prices to be much cheaper than gasoline, even though they have been affected by the gas crisis.
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