According to study published by the Electrification Coalition, electric vehicles won't become fully cost competitive with ICE until 2017.
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For some, that may seem a short time to wait for cost-competitiveness, but we're thinking some electrics are cost competitive right now.
The Electrification Coalition says that "short-range plug-in hybrid electric vehicles are already cost competitive with cars powered by internal combustion engines," according to the LA Times, citing a conference cal with the Coalition.
The Coalition basis cost competitiveness on purchase price, as well as the cost of ownership over 5 years, with 14,000 miles driven per year. Additional evaluation criteria is outlined by the LA Times as follows:
"The coalition teamed with professional services firm PricewaterhouseCoopers to calculate expected costs of several types of compact cars, pitting battery-electric against internal combustion engines, plug-in hybrids and hybrid vehicles. Including cost of purchase, fuel, maintenance, federal tax credits and residuals, the data show the cost of owning gas-powered vehicles continuing to rise through 2024 as costs for hybrids, plug-in hybrids and pure electric cars decline dramatically."
While the Coalition says that some plug-in hybrids are already cost competitive, it sees pure electric vehicles as having a ways to go still.
On the conference call, Jonna Hamilton, the coalition’s vice president of policy, stated:
"In this analysis, we also saw that battery electric vehicles should have a total cost of ownership that is competitive with internal combustion engines in 2017."
Hamilton says that electric vehicles are still burdened with high battery prices and that's the main reason they aren't yet cost competitive. However, we've seen studies that disagree, including this recent one released by the Electric Power Research Institute.
And the general consensus out there seems to be that, in terms of ownership costs, several of today's electric vehicles are actually cheaper than their ICE counterparts.
Now, we arrive at a point where there's those out there who say EVs aren't competitive with ICE and those saying ICE aren't competitive with EVs. It seems we're at a point in time where the cost of ownership is so close that studies come up with conflicting conclusions. Soon, the scales will undoubtedly tip fully in favor of electric vehicles.
Source: LA Times