The Climate Group – electric vehicle costs competitive with diesel

The cost of electric and diesel vehicles is converging and are already competitive in some markets according to The Climate Group.

The ‘EV100 Progress and Insights Report’ bases its findings on the total cost of ownership – this includes capital costs but also fuelling, maintenance regimes and insurance etc. The Climate Group’s report shows that the capital cost of electric vehicles are set to reach parity with internal combustion engined vehicles, even without subsidies by 2024.

In amongst this fall in capital cost is the price of battery packs (the most expensive component of the vehicle). These have fallen by 85% between 2010 and 2018 from $1,160 per kWh to $176 per kWh.

Helen Clarkson chief executive of the Climate Group said: “We’re reaching an exciting tipping point. The news today is very encouraging for the electric revolution and will reassure buyers of EVs that they’re making the right investment.”

For delivery fleets this convergence means that moving to electric vehicles will soon be an economic choice rather than one for Corporate Social Responsibility reports.

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