If it’s the cost of electric cars that has been making it tough for you to buy into the idea of an EV, just give it a few years. According to at least one economist, the cost of electric cars will be on par with conventional vehicles by 2025, as highlighted in a Yale Climate Connections report.
- A University of Michigan economist says that EVs will soon be similarly priced to conventional vehicles.
- Startup companies are helping to drive the down the cost of electric cars, contends the economist.
- Lower battery costs will also help to reduce the cost of electric cars.
When it comes to buying a new vehicle, price has tended to be a major deterrent in choosing to go the electric route. (Photo: Getty Images)
Leveling the playing field
For many, the upfront cost of buying an electric car, when compared to the price of a conventional gas-combustion vehicle, has made it more challenging to go green. This factor has also kept EV sales from amounting to more than a small percentage of the overall car market.
But according to Ellen Hughes-Cromwick, a senior economist at the University of Michigan Energy Institute, that’s changing. She predicts that the price of electric cars will match the price of conventional cars in three to five years. In fact, the economist contends that the process is already underway.
“We are observing that many manufacturers as well as technology companies and innovative start-ups are driving that cost lower,” said Hughes-Cromwick, as quoted in the Yale Climate Connections report. “We expect that in the next three to five years, that battery cost will be very competitive.”
WHY THIS MATTERS
Predictions of lower costs would give the EV sector a much-needed vote of confidence and speak to the potential for the wider adoption of electric cars.