Electric Cars Will Be Cheaper, More Popular By 2022, New Study Claims

Feb 28, 2016 12:44 PM EST | John Nassivera

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The demand for electric cars isn't expected to decline any time soon, as a new study claims that EVs will become cheaper and more popular than their gas-powered counterparts by 2022.

Electric cars are already in existence, and big car companies are already investing money into the technology. However, they still have not become the mainstream car choice because they are still more expensive than gas cars.

The study, conducted by Bloomberg New Energy Finance (BNEF), also showed that the future decline of battery cost will be the key to bringing the prices of electric cars down, thus making it more possible for people to acquire and maintain electric cars at an affordable ownership cost.

The study also predicts that the total cost of ownership for electric cars will decrease compared to combustion engine cars, even if the fuel efficiency increases by 3.5 percent each year, according to The Guardian.

"If the oil price were to fall to $20 and stick there, this would only delay mass adoption of electric cars to the early 2030s," said Salim Morsy, senior analyst and author of the study, according to The Independent. "In the next few years, the cost-of-ownership advantage will continue to lie with conventional cars, and we therefore don't expect electric cars to exceed 5 per cent of sales in most markets - except where subsidies make up the difference. However, that cost comparison is set to change radically in the 2020s."

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