The price of an electric car currently is more expensive than a conventional gasoline car of the same caliber. But automakers have used the reason of cheaper fuel and less costly maintenance will help displace the higher upfront price tag that owners have of buying electric. Bloomberg New Energy Finance released a study predicting electric cars becoming cheaper than combustion engine cars by 2030. The research indicates falling battery costs will help reduce the overall price of an electric car enough that it will be cheaper than a gasoline car by 2025. The London-based research shows that the battery accounts of roughly half the cost of the electric vehicle itself, and their prices will fall by about 77 percent between 2016 and 2030.
The study predicts conventional cars will cost roughly $30,000 in 2030 while electric vehicles will come down to somewhere between $26,000 to $27,000. Renault, the maker of the Zoe electric car, predicts total ownership costs of electric vehicles will be equal to conventional internal combustion engine vehicles by 2020s. According to Gilles Normand, Renault's senior vice president for electric vehicles foresee two curves on the price of personal vehicles. "One is EV technology costs reductions because there are more breakthroughs in the cost of technology and more volume, so the cost of EVs will go down."
"Internal combustion engine going to go up as a result of more stringent regulations especially regarding to particulate regulations." Currently a lot of the cost of an electric car is actually spent on researching the technology. It is so expensive, that some automakers have opted out on developing their own line of electric cars. And stricter government regulations on fuel efficiency has many automakers scrambling to make quota. They must reduce weight of the vehicle in order to create better efficiency without damaging the integrity or the safety of the vehicle. Using different materials may incur additional costs which may hurt the bottom line. Electric cars have been slow to be adopted in North America. Even with government sponsored incentives which brings the price tag of an electric car in competitive range of a gasoline car, the new car sales for renewable energy only hovers around the 1 percent mark of all new car sales.