BAKU, Azerbaijan, Jan.6. Electric vehicles (EVs) will become significantly cheaper within a decade and remain cheap, reads a report published by DNV GL, Trend reports Jan.6.
The report reveals that as scale advantages for Original Equipment Manufacturers (OEMs) erode, combustion vehicle prices are likely to rise.
“Despite the fact that EVs already have much lower running cost per 100 km, private buyers mainly look at purchase price. As upfront costs decline and total cost of ownership (TCO) advantages become clearer, passenger and commercial EVs will soon outcompete combustion vehicles. Unlike private buyers, commercial owners are strongly motivated by TCO calculations. While EVs have already plunged through the fossil TCO line, buyer behavior lags cost developments as other considerations like range and ease of charging come into play. By 2050, 78 percent of all vehicles worldwide will be EVs. This will significantly alter road transport infrastructure. As ever more petrol stations are transformed into EV charging facilities, range anxiety may become an issue for combustion vehicles drivers,” says DNV.
The report says that the uptake of EVs — passenger EVs first — will occur rapidly.
“Supported by contemporary findings (Keith et al., 2018), we assume that people choosing to acquire an EV will base their decision on weighing costs against benefits. Within our approach, simulated buyers have the choice between EVs (becoming increasingly cheaper and providing a longer range over time) and ICEVs in the categories: passenger vehicle, commercial vehicle, and two- and three-wheelers. Potential buyers of passenger vehicles will consider purchase price to be the main factor, putting less emphasis on the advantageous operating costs. Owners of commercial vehicles will give greater weight to the advantages of EV operational costs.”
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