“BEVs are cheaper than petrol cars from 2027”

08-07-2021
According to a new study by BloombergNEF (BNEF), battery electric vehicles (BEVs) are cheaper to produce from 2027 than vehicles that run on fossil fuels. This concerns both passenger cars and light commercial vehicles in all vehicle segments in Europe.

According to the researchers at BNEF, battery electric vehicles from the C and D segment will already be cheaper to produce by 2026 than comparable cars with a traditional combustion engine. This also applies to SUVs of different sizes. Production costs of smaller B-segment electric cars are expected to fall below the cost of conventional cars from the same segment by 2027.

One thing is for sure. It won’t be up to MG. The carmaker is already known as the first truly affordable electric car brand in Europe. The models also offer plenty of space for your family, a very decent quality and first-class safety. And don’t forget the industry-leading warranty conditions and generous standard equipment.

The falling production costs of electric cars are mainly due to the fact that electric cars are technically much less complex, as BNEF states. As a result, many electric cars will use the same platform in the future, resulting in a decrease in development costs per vehicle. With conventional cars, a huge amount of money is sometimes invested in a new vehicle architecture that is only used for one or two models. Furthermore, falling battery prices play a role as well. According to BNEF, production costs per kWh have decreased by 58% by 2030 compared to 2020.

Crucial to this story is that EV sales are continuing their current upward trend, especially in Eastern Europe. To make this happen, it’s necessary to speed up the expansion of the European charging facility infrastructure for electric cars. Otherwise, it could lead us to reach a point where the increase in the number of electric cars stagnates.

Want to know more? Find out more about the electric MG models here.

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