Study predicts EVs cheaper than fossil-fuel by 2027

Electric cars and vans will be cheaper to make than fossil-fuel vehicles in every light vehicle segment across Europe from 2027 at the latest, according to a new BloombergNEF study commissioned by Transport & Environment.

Electric sedans (C and D segments) and SUVs will be as cheap to produce as petrol vehicles from 2026, while small cars (B segment) will follow in 2027, BNEF projects. 

It finds that falling battery costs, new vehicle architectures, and dedicated production lines for electric vehicles will make them cheaper to buy, on average, even before subsidies. 

Light electric vans will be cheaper than diesel vans from 2025, and heavy electric vans from 2026, BNEF also finds. 

The research found that battery electric vehicles could reach 100% of new sales across the EU by 2035, if lawmakers introduce measures like tighter vehicle CO2 targets and strong support for charging infrastructure. T&E called on the EU to tighten emissions targets in the 2020s and set 2035 as the end date for selling new polluting vehicles.