Electric cars will be a cheaper option than conventional cars within six years, according to a new report published by Bloomberg New Energy Finance (BNEF). It also predicted that one quarter of all cars will be electric by 2040, slashing global oil consumption by 14 per cent.
The key driver behind the mass uptake of electric vehicles (EV) will be reduced prices of batteries.
The report has found that limited charging points and short range are the two main obstructions to mass uptake of EVs at the moment, but those problems will evaporate in the near future.
The study used data from the US government and allowed for a yearly improvement of 3.5 per cent in conventional engine efficiency, but still showed that EVs will become more affordable than internal-combustion engine vehicles by 2022. This is assuming that oil prices continue to follow predicted trends.
The EV market is now just one per cent of all new cars sold, with 3,293 eligible cars registered on British roads in December, making a total of 48,000. Meanwhile, BMW found that of 2,000 motorists questioned, 20 per cent indicated they planned to make the switch to EVs with their next vehicle purchase.