Electric Cars Cheaper Than Conventional Gas-Guzzlers? By 2022 All-Electric Vehicles Will Get Truly Affordable, Indicate Industry Trends

Electric cars will steadily get cheaper and by 2022, they would a little more affordable than conventional gas-guzzling cars, claims a new report.

Electric cars are slowly but increasingly becoming an integral part of auto industry. With most of the automakers and many of the tech companies like Google seriously looking into automotive technology, all-electric cars are about to become truly affordable. While the actual outright ownership of electric cars could remain high, it won't be prohibitive. More importantly, due to cleaner energy and dependable technology that offers reliable mileage, these vehicles will actually be cheaper than their gas-powered counterpart by 2022.

The key aspect that has been keeping the prices of all-electric vehicles out of the affordable realm, is the high-density electric batteries that power these ultra-silent machines. Batteries continue to remain the most expensive component in an electric car today. However, the scenario is about to change significantly feel industry experts. The steady improvement in technology and manufacturing practices, have had a positive impact on the cost of the batteries. With the prices steadily declining and capacity rising, the cost of the electric vehicles would soon be within the reach of the masses.

Electric Cars Cheaper Than Conventional Gas-Guzzlers? By 2022 All-Electric Vehicles Will Get Affordable
(Photo by ARK Investment Management LLC)

The battery accounts for about 20 percent of the entire vehicle, which needless to say is substantial. Interestingly, even Internal Combustion Engine (ICE) powertrains account for roughly 20 percent of the cost of those vehicles. Apart from the battery cost, it is the range that has been giving the potential buyers a lot of anxiety. Today's drivers fear running out of charge when they're out in the road, particularly if they've not planned their journey well enough, or are caught up someplace where they can't find a place to charge their car, reported Uber Gizmo.

Fortunately, technology has allowed electric vehicles to comfortably have a range exceeding 200 miles. Today's Lithium Polymer (LiPo) batteries are densely packed and when laid out in arrays, pack a powerful and dependable punch that can easily ferry a vehicle and its passengers for longer distances.

Bloomberg New Energy Finance (BNEF) analysts confidently predict that by 2022, the demand for the electric vehicles could outpace that for gasoline-powered cars, reported Seeking Alpha. Technically speaking, the cost of lithium-ion cells is falling a little faster, and the cost to manufacture traditional ICE powertrains has been increasing because of stricter efficiency and emission regulations.

Electric Cars Cheaper Than Conventional Gas-Guzzlers? By 2022 All-Electric Vehicles Will Get Affordable
(Photo by ARK Investment Management LLC)

If one incorporates the savings these electric vehicles offer, like lower maintenance and fuel costs, these two graphs have already collided. Experts feel, with the 200-mile range batteries becoming increasingly popular, the vehicles sporting an all-electric powertrain will be cheaper to the end consumer than the majority of ICE vehicles within five to seven years. These vehicles would be cleaner & more efficient than the gas-powered cars.

Large scale roll-out of electric vehicles (EVs) is seen as vital in both cutting the carbon emissions that drive climate change and in dealing with urban air pollution, which leads to many premature deaths every year, reported The Guardian. However, even after substantial subsidies and tax benefits, electric vehicles are currently beyond the reach of the common commuter. The adoption of these vehicles is so poor, there's only one customer per 100, who is willing to invest in an electric vehicle. In other words, only 1 percent of new cars sold are electric.

Despite stricter norms, ICE cars will steadily decline in appeal. Then there's the all importance consideration of gas prices. The analysts used U.S. government's projected oil price of $50-$70 (£36-£50) a barrel in the 2020s. If the present prices continue to prevail, the adoption of the electric vehicles might be adversely affected since it would still be cheaper to burn fossil fuels, fear analysts.

[Photo by Dimitar Dilkoff/Getty Images]