A study conducted by the Slovak Institute for Environmental Policy suggests that with the forthcoming increase in the stringency of EU pollutant emission standards (known as 'Euro 7'), fossil fuel-powered cars will become more expensive, while electric cars are becoming increasingly cost-efficient. As a result, people could save up to €2,500 by choosing electric vehicles five years ahead of the EU's combustion engine ban in 2035, according to the research.
Industry analysts predict that manufacturers will ramp up the production of electric cars given the forthcoming 2035 EU ban on new combustion engine cars, with the new emission norms for fossil fuel-powered cars supporting this shift. This will lead to a convergence in prices by 2028 in Slovakia, making electric cars more competitive from 2029, as reported by Denník N.
Katarína Nánásiová, a co-author of the analysis, explains that currently, most electric cars are produced on assembly lines originally intended for vehicles with internal combustion engines. However, these lines will gradually transition to predominantly produce electric cars over time, which will help to reduce costs further.
For larger SUVs, the cost difference is even more significant, with electric cars expected to outperform their fossil fuel-powered ones within two years. In that timeframe, opting for an electric car will save the buyer an average of €7,500 during the vehicle's lifetime. For instance, by 2035, owning a Peugeot 2008 with a traditional engine will be 40% more expensive than owning its electric counterpart.
The analysts also project that electric trucks will become predominant, with 90% of newly purchased vehicles being zero-emission by 2040.
However, the study highlights the importance of sufficient state support to encourage customers to buy new electric vehicles, at least in the short term. Without such aid, customers may be hesitant to switch and opt to buy a used combustion car instead. The authors recommend such a scheme until improvements to their economy of scale makes electric vehicles cost competitive. Additionally, they propose using "polluter pays" taxes to raise the price of used combustion cars, though such a policy might face strong opposition in Slovakia. The country's parliament has previously attempted to halt the EU's combustion engine ban and is part of an alliance of countries resisting the stricter Euro 7 emission standards.
Original article published by euractiv.com on 14 July 2023.
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