New research on the electric vehicle industry is suggesting that by 2021 the cost of electric car ownership will be no different to that of petrol and diesel models.
The research, which has been conducted by Deloitte has analysed the current and future growth of the EV industry and predicts that electric vehicles will grow from two million units in 2018 to four million next year and by 21 million in 2030.
Deloitte also say that the demand for greener vehicles will also see EVs account for 70 per cent of the market by 2030. Financial incentives from governments will also drive growth.
Michael Woodward, UK automotive partner at Deloitte, said:
“In 2018, we saw global EV sales surpass two million units for the first time; twice those sold in 2017. In the UK, the cost of petrol and diesel vehicle ownership will converge with electric over the next five years. Supported by existing government subsidies and technology advances, this tipping point could be reached as early as 2021. From this point, cost will no longer be a barrier to purchase, and owning an EV will become a realistic, viable option for new buyers.
“Whilst there is a distinct trend developing in the EV market, the story is not a clear cut one. As manufacturers increase their capacity, our projections suggest that supply will vastly outweigh consumer demand by approximately 14 million units over the next decade. This gearing up of EV production is driving a wide ‘expectation gap’ and manufacturers, both incumbent and new entrants alike, will need to adapt towards this new competitive landscape.
“Those that can successfully build trust in their brand, ensure a positive customer experience from initial sale through to aftercare, and reflect consumer shifts towards the sharing economy in future business models will successfully navigate this. Equally, continual investment in engineering talent and the formation of partnerships with bespoke battery producers and third-party mechanic networks will also be important.”