GlobalData research shows that lower oil prices as a result of the Covid-19 crisis could reduce electric vehicle demand and impair EU efforts to significantly reduce average new vehicle CO2 emissions in the European car market, the data and analytics company said.
Mike Vousden, Automotive Analyst at GlobalData, commented, “GlobalData’s analysis suggests that low oil prices will lead to a longer waits for the reduced fuel costs offered by electric vehicles (EVs) to amortise their higher purchase prices.”
“This could prove very problematic for the industry in a year that was supposed to mark the big shift to EVs to reduce fleet CO2 emissions in line with new tighter EU CO2 targets.”
EVs typically cost more than an equivalent internal-combustion-engined (ICE) vehicle but their lower running costs reduce that price differential over time and, in the longer term, end up costing less overall than their ICE counterparts.
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