Deloitte: Electric vehicles will be cheaper than petrol/diesel by 2021
Commenting on yesterday’s new car registration figures – which showed registrations of battery electric vehicles (BEVs) increasing 158 per cent year-on-year in July despite the wider downward trend – Deloitte opines that a ‘tipping point’ between combustion and electric vehicles will occur in the UK by 2021.
Michael Woodward, Deloitte’s UK automotive lead, notes that the BEV sector is “expected to increase its market share significantly over the next few years.” He anticipates a sea change arriving via a combination of developments, including significant manufacturer investments and measures such as company car tax incentives for zero emission vehicles.
“Alongside government incentives, the total cost of owning and running an electric vehicle continues to fall,” Woodward adds. “Deloitte analysis predicts a tipping point will be achieved in the UK by 2021, when electric vehicles are expected to become cheaper than their diesel and petrol counterparts.”
Woodward views hybrid vehicles, which enjoyed a 34.2 per cent rise in sales in July, as a “stepping stone” for consumers and business who are “either unable or unwilling to make the leap to electric.”
Businesses pausing investment
Car sales declined by 4.1 per cent year-on-year in July; Woodward notes that the month’s figures were the lowest July sales since 2012.
“Whilst there are a number of factors impacting the latest sales figures, uncertainty surrounding Brexit is impacting both fleet and business sales, down -4.7 per cent and -22.5 per cent respectively,” he comments. “Deloitte’s latest CFO survey revealed businesses are pausing investment, and the decline in business sales is part of this wider trend.”