Electric Cars Will Be Cheaper Than Petrol And Diesel Cars By 2030

New reports indicates that massive factories could reduce the cost of batteries.

Updated: Thursday, May 25, 2017, 18:04 [IST]

Electric cars are slowly growing in numbers and gaining acceptance around the world. Electric vehicles make up a small percentage of new car sales and because of this there is a significant push for affordable and cheaper electric cars in the market.

Despite government incentives, an electric car costs much more than conventional petrol or diesel powered vehicles. So when can we expect an electric cars' price equivalent to a conventional car?

Electric Cars Will Be Cheaper Than Petrol And Diesel Cars By 2030

According to an MIT Technology Review, very soon. The review cited several reports from Bloomberg New Energy Finance; it claims electric vehicles will become cheaper than conventional ones by 2030.

Sales of more affordable electric cars can be propelled by an increase in the number of battery factories, which will increase production capacity, eventually providing the economies of scale needed to make batteries cheaper.

Tesla's "Gigafactory" attracts a lot of attention, but that's not the only factory where batteries are being developed. For example, Daimler subsidiary Deutsche Accumotive, recently broke ground on a new battery plant in Kamenz, Germany, to supply batteries for future Daimler electric cars.

Back in March 2017, Bloomberg predicted that global battery production capacity would double by 2021, driving down prices and leading to a massive growth in electric car sales.

Implementation of stricter emission norms around the world is expected in the 2020s. During this time, automakers will look offer long-range electric cars, potentially increasing their appeal to buyers.

All of the initiatives look promising for electric car sales. Also, charging stations or infrastructures must grow according to the growth of electric cars to be a practical alternative to petrol or diesel powered cars.