Electric cars to see price parity with ICE models by 2029, claims study

The price gap between electric and internal combustion engine-propelled cars remains a major factor in consumer’s decision-making process when choosing a new vehicle.

While factors such as range anxiety, lack of electric vehicle charging infrastructure, and lack of model options compared to ICE vehicles have been playing their respective roles in such decision-making process, the significant price gaps between EVs and ICE vehicles is a major one that drives many buyers away from electric cars. However, the EVs are likely to see price parity with their fossil-fuel-powered counterparts by the end of this decade, claims a study by the International Council on Clean Transportation (ICCT).

A major reason behind the huge gap between the sticker price of electric cars and fossil fuel models is the high price of batteries and raw materials used to make them. However, with the increasing penetration of electric vehicles in the transportation sector and thanks to the subsidies and incentives offered by governments around the world, costs of battery packs are gradually plummeting, which is expected to bring parity in prices of EVs and ICE vehicles by 2029, forecasted the study.