EV prices will meet ICE car prices in 2025

One of the biggest barriers for not purchasing electric cars is their price – in addition to range anxiety and lack of charging infrastructure. Prices are predicted to come down to the level of ICE cars in 2025.

Electric vehicle price scenarios are mostly formed based on predictions of demand and battery prices. As the battery technology evolves and the demand rises, the prices are expected to come down with quite a speed.

One tipping point has already been reached: electric cars are cheaper to own than conventional cars in UK, US and Japan. These total cost of ownership calculations include car ownership including buying, fuel, insurance, taxes and maintenance of the vehicle. Electric cars have relatively low charging and maintenance costs, which balances the price difference during time.

Wildest estimates predict the price parity to be reached already this year. According to Bloomberg New Energy Finance, electric car purchase prices are predicted to come down to the level of ICE cars in 2025. 

Picture: U.S. medium segment vehicle price estimates by Bloomberg New Energy Finance.

Electric cars could be compared to smartphones: it took some years for technologies to evolve and prices to drop. Today, everyone from toddlers to seniors has a smartphone stuck in one hand.

E-mobility needs early adaptors. Within few years, electric car will be the next normal – just like happened with smartphones.