Electric cars to be as cheap as petrol and diesel counterparts by 2022

Electric car charging
8 Mar, 2016 9:00am Martin Saarinen

EVs could be as cheap as petrol and diesel cars as early as 2022, however, the oil and electric industry still have catching up to do

Electric cars could cost the same as their petrol and diesel counterparts as early as 2022, thanks to developments in battery technology, a new report by Bloomberg Business reveals. 

The cost of batteries has fallen by 35 per cent last year alone, putting them on a trajectory towards their internal combustion counterparts. Global EV sales grew by 60 per cent last year, and by 2040 Bloomberg predicts around 35 per cent of new cars sold globally will be electric.

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This looks an ambitious target, especially when considering EVs make up less than one per cent of current global car sales. However, because batteries make up over 30 per cent of the cost of an electric car, bringing the costs of battery development down would have a dramatic effect on prices. According to Bloomberg, this could happen as soon as 2022, the year it predicts electric car sales will “lift-off”. 

This lift-off would not just affect the car industry, but energy industries will have to play catch-up. The report estimates electric vehicles could displace as much as 2 million barrels of oil a day by 2023 – enough to start another oil crisis.

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Meanwhile, electricity providers will have to think of new ways to meet the growing demand, as by 2040 the report predicts electric cars will need 1,900 terawatt-hours of electricity, equal to about 10 per cent of the total global electricity produced last year.

Do you think electric cars will be as cheap as their petrol and diesel rivals by 2022? Would you buy an electric car now? Tell us in the comments section below...