A Dutch bank has predicted that all new cars sold in Europe will be electric within the next two decades. The rise of the electric car in Europe will be driven by government support, falling battery costs and economies of scale. ING has also warned that with battery powered vehicles accounting for all new car sales across the continent, European auto manufacturers may lose out to their Asian and American rivals which already have a lead in battery development. This new forecast is much more aggressive than recent projections. The United Kingdom's National Grid had forecasted a much slower adoption which has 90 percent of new car sales in Britain will be electric by 2050.
France's recent commitment of banning new petrol and diesel car sales by 2040 suggests that there is no rush to adopt all electric vehicles in Europe. The Dutch bank defends their prediction because they believe pure electric vehicles will become the rational choice for motorists in Europe sometime between 2017 and 2024, as vehicle prices falls and their ranges increases along with the charging infrastructure becomes more mature and developed. The report suggests that in Germany, the cost of ownership for an electric vehicle, which includes purchase and fueling it, would be the same as a conventional petrol or diesel model.
Range anxiety, the largest hurdle the electric car market faces currently, will be solved by more powerful batteries over the next decade. The predict by the end of next decade, all auto manufacturers will begin solely focusing on developing electric models. Volvo last week had already announced the end of the combustion engine model line and will be solely focused on electric vehicles by 2019. The bank expected electric vehicles will beat out on hydrogen fueled vehicles on both price and infrastructure. Some industry experts and big oil have prompted a push back of the recent positive trend of electrification of vehicles. At an energy conference this week in Istanbul, Shell, Saudi Arabia's state oil company and the International Energy Agency dismissed the idea that electric vehicles will hurt oil demand.