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Electric Cars to Cost the Same as Gas Cars in 10 Years

February 29th, 2016  |  Auto

Paying a premium for eco-friendly transportation may soon be a thing of the past according to a recent Bloomberg study.

The Bloomberg New Energy Finance report predicts that by the mid 2020s, the cost of electric battery production will have dropped sufficiently enough to make the sticker price of electric vehicles the same as their gas counterparts. One of the main things holding electric vehicles (EVs) back from gaining a larger market share is the higher prices associated with vehicles that mainly people perceive as not being practical for their range needs.

Autoblog says that while the prices of EVs will come down, the total cost of owning one will still be a little higher than fuel burning cars, especially thanks to the low oil prices we’re currently seeing.

Of course, one of the major incentives to driving electric isn’t saving money, but saving our planet, and in that case, if the report’s predictions are true, a quarter of the vehicles on the road in 2040 could be electric and that would replace 13 million barrels of crude oil per day. It would also mean the world’s electricity demand would jump 8 per cent.

In Canada where the government subsidizes electric car ownership, the money saving benefits are a little easier to achieve with electric cars achieving comparable or lower costs after several years once factoring in the reduced maintenance and fuel costs on top of government rebates.