The lifetime ownership cost of electric cars is coming down fast in comparison with their fossil-fuel counterparts. A study conducted by the University of Exeter in the UK has predicted that, for a mid-range car, ownership costs of EVs will achieve cost parity with internal combustion engine vehicles (ICEVs) between 2023 and 2025 in China, India and Europe, and by 2030 in the US.
The researchers point out that approximately 50% of the lifetime ownership costs for ICEVs come from fuel use and maintenance costs, while electricity accounts only for around 20%-30% of costs for EVs. This means that “ownership cost parity occurs earlier than vehicle price parity” or more simply put, it may cost you more upfront to buy an EV, but it will be much cheaper to run and save you money over its lifetime.
While the research did not specifically include the UAE in their analysis, the lifetime cost of running an EV here is likely to be extremely advantageous as the country is the fourth cheapest for recharging, only beaten by Argentina, Malaysia and India.
Simon Sharpe, a UK-based academic and policy commentator, said that these timelines could also be shortened by more concerted collaboration by governments and the introduction of policy measures to encourage people to switch sooner. These could be incentives, such as tax breaks and investment in charging infrastructure, or more contentious policy choices such as bans of the sale of new petrol vehicles.
“Strong policy has got the transition to electric vehicles started and just because the transition is now gathering pace does not mean that any government should take its foot off the accelerator,” he said.
He continued: “Zero-emission vehicle mandates, investment in charging infrastructure, purchase incentives and battery-recycling standards can all help people to enjoy the benefits of low-cost, zero-emission, sustainable road transport sooner.”
The Exeter University paper, entitled “Evidence for a global electric vehicle tipping point” and lead-authored by Aileen Lam, concludes that an “irreversible” tipping point towards EVs and away from ICEVs in leading vehicle markets could happen within the next decade. They also see that “spilling over” into developing markets shortly after.
And in a strong message to policy naysayers, the report states: “Given that an irreversible EV tipping point appears to be close in leading markets, policymakers in all countries may be better off rapidly getting on board. This could accelerate the transition to the pace needed to decarbonise in time to achieve transport emissions reductions consistent with the Paris Agreement, while drastically reducing exposure to oil market volatility and dependence on foreign supplies.”
So, basically, the EV age is nearly here and it’s in everyone’s interests to make sure it comes even sooner.
