BAKU, Azerbaijan, Dec.18
By Leman Zeynalova – Trend:
Cost of owning an electric car to increase in the long term, Trend reports with reference to LUKOIL company.
“Taxes account for about 50 percent of the retail price of traditional motor fuels in Europe, which reduces the competitiveness of fossil fuels in transport. In certain market conditions (such as in the second half of 2021), electricity may cost more to consumers than traditional fuels, especially when using fast charging network. In the medium term, the cost of ownership of an electric car will decrease due to scaling up production. In the longer term, the cost of owning an electric car will increase due to rising prices for metals, electricity and the need to recycle batteries. The increase in electricity taxes may also be one of the reasons for the increase in the cost of owning an electric car,” the company said in a report.
LUKOIL notes that СО2 emissions from the manufacturing of ICE cars are lower than from electric vehicles production, while a car with an ICE produces the major amount of emissions when burning fuel.
“The carbon footprint of an electric vehicles strongly depends on the source of electricity it uses: emissions from an electric vehicle when using electricity generated from coal are comparable to emissions from a hybrid car with an ICE. The use of fuel with an extinguished carbon footprint (i.e. carbon certificates confirming the offset of the carbon footprint from fuel production and consumption) is one of the possible ways to significantly reduce emissions from cars with ICE,” the company said.
LUKOIL analysts point out that high demand for cars in developing countries contributes to the growth of the global fleet.
“The fleet of cars with internal combustion engines as of 2020 totals 1,5 billion cars. Replacing such a number of cars with electric vehicles will take a long time. In the “Evolution” scenario, the share of electric vehicles in the total car fleet will increase from the current 1 percent to 35 percent by 2050,” reads the report.
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