The cost of owning an electric vehicle in the UK will equal that of a petrol or diesel vehicle by 2022, a new report claims.
The analysis, which has been published by professional services network Deloitte, also foresees EVs grabbing ten per cent of the total market by 2024.
Mike Woodward, North West Europe automotive leader at Deloitte, said: “Automotive original equipment manufacturers are pursuing electric strategies with varying degrees of success.
“With competition fierce among themselves, the incumbent OEMs now face growing competition from lesser known Chinese OEMs and a staggering number of new entrants, including a mixture of startups, established tech companies and even brands from other industries.
“It is our belief that as competition in the EV market grows, an expectation gap is emerging between manufacturer capacity projections and demand from customers.
Supply to outstrip demand?
“With a substantial increase in the level of EV production expected over the next decade, the number of potential manufacturers appears genuinely unsustainable.
“If, as expected, supply significantly outstrips demand then something will have to give.
“Our expectation is that the market will find a way to normalise itself at the expense of the manufacturers.”
Future emission targets and fuel economy standards, financial incentives, and future city access restrictions are expected to be the drive down the cost of electric vehicle ownership.
The report claims 20 major cities have already announced plans to ban gas and/or diesel vehicles by 2030 or sooner.
Demand is expected to increase over time based on the expected future progress in batteries and battery systems.
Researchers expect worldwide sales of four million worth of EV sales in 2020 and 12 million by 2025.
By 2030, an estimated 21 million EVs will be sold.
The report suggests sales of internal combustion engine vehicles to level off in the early part of the next decade and begin to fall from 2024 going forward while EVs outperform PHEVs.
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