A new report predicts that by 2021, the cost of battery powered electric vehicles will match that of traditionally fuelled cars in the UK.
An additional 21 million electric vehicles (EVs) will also be on roads across the world over the next decade, according to new analysis from Deloitte.
The research predicts the pace of global EV adoption will rise from two million units in 2018, to four million in 2020, 12 million in 2025, before rising to 21 million in 2030.
By 2030, Battery Electric Vehicles (BEVs) will significantly outperform the rest of the EV market, accounting for 70% of total EV sales.
Deloitte’s analysis points to two factors in accelerating BEV uptake: growing consumer demand for greener vehicles, coupled with government policies that offer financial incentives while placing inner-city restrictions for gasoline and diesel vehicles.
Though upfront purchasing costs of EVs remain the biggest barrier for consumers, the research reveals however, as technology improves, this and other consumer concerns will ease over time.
While people may not be willing to fork out for an EV just yet, research The Manufacturer reported on previously showed that consumers are willing to pay 13% more on their energy bill, for greener energy sources. This shows a clear shift in consumer attitudes toward energy consumption.
The automotive industry looks to capitalise on the EV market. Britain’s biggest car manufacturer, Jaguar Land Rover, announced that from 2020, all new vehicles manufactured will be electrified.
JLR will also commence production on its electric E-Type Zero model, with the first deliveries expected in summer 2020.
From later this year, Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton.
These EDUs will be powered by batteries assembled at a new Jaguar Land Rover Battery Assembly Centre located at Hams Hall, North Warwickshire.
The centre will be one of the largest of its kind in the UK, using new production techniques and technologies to manufacture battery packs for future cars.
A new status quo
Britain will end the sale of new conventional petrol and diesel cars and vans by 2040, as stated in the government’s Air Quality initiative.
This forms part of plans to make the UK world-leading in electric and energy efficient vehicles.
A Ultra Low Emission Zone (ULEZ) will also be in place in central London from 8 April this year, further deterring customers from purchasing diesel/petrol vehicles.
Cars and vans will need to meet new, tighter exhaust emission standards (ULEZ standards) or pay a daily charge of £12.50 to travel within the area. This potentially on top of London’s £11.50 congestion charge. Introducing such policies further puts pressure on consumers and automotive manufacturers to make the switch to EVs.