All-electric vehicle cost of ownership to fall below that of traditional petrol vehicles by 2020 - new study

All-electric vehicle cost of ownership to fall below that of traditional petrol vehicles by 2020 - new study

A study by the German organization DEKRA concluded that by 2020 the total cost of ownership of BEVs will be 3.2% lower than comparable ICE vehicles without government subsidies. This takes into consideration purchase price, electricity, maintenance, and repairs.

The authors of the study expect that due to an increased selection of models, lower purchase prices, increasing range and the expansion of the charging infrastructure EVs will become the standard transportation solution in metropolitan areas and PHEVs for long-distance travel.

Increasing battery densities and lower costs are making EVs (like the Bolt shown above) more and more affordable

Increasing battery densities and lower costs are making EVs (like the Bolt shown above) more and more affordable

According to the study the current high cost of EVs is due mainly to the cost of the battery, which shows a clear trend downwards. In 2010 the cost of a 25-kWh battery stood at 22,500 Euro (~$26,500 USD), while the same battery is expected to cost only 3,750 Euro in 2020 (~$4,500 USD). At the same time the energy density is increasing from 100 to 150 and eventually 200 Wh/Kg at the same size and volume, making a range of 400 Km (250 miles) possible.

The number of charging stations is also rapidly increasing. By 2020 it is expected that 77,100 charging stations will be available (in Germany), 10% of which will be fast chargers. The authors expect that the availability of inductive charging could further increase the acceptance of EVs.

While this study is based on numbers from Germany, where the cost of fuel is significantly higher than in the US, the same trends hold true here as well. Other studies have come to the same conclusion with varying timeframes. The good news is EVs are getting continuously better and cheaper and it is only a matter of time before buying one becomes a no-brainer, even for the average Joe.

Source: Dekra