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Battery electric vehicles (BEVs) are projected to incur costs of around ** euros per 100 km in 2030, the cheapest of all motor vehicles on the road. Vehicles using synthetic fuel that are powered by a mild hybrid electric drivetrain or an internal combustion engine are forecast to be the most expensive.

BEV’s cost advantage

Mobility costs refer to the expenditure required for travel; they include costs relating to fuel, tax, insurance, and depreciation. BEVs are expected to be the most cost effective in 2030 due to fewer parts and less exposure to wear and tear. Furthermore, many drivers around the world are already taking advantage of financial incentives offered for switching to electric mobility. In China, the world leader for sales of BEVs, subsidies are available on purchases of new energy vehicles, and in the United States, electric vehicle buyers are eligible for a federal tax credit of up to U.S. dollars – a state subsidy that many survey respondents consider to be appropriate. However, policymakers are likely to reduce the subsidies on offer for the purchase of electric vehicles over the next decade.

Hybrid vehicles: the best of both worlds?

There are *** types of hybrid electric vehicles on the market: mild hybrid electric vehicles (MHEV) and plug-in hybrid electric vehicles (PHEV). Both have an internal combustion engine and an electric engine, but the electric motor within an MHEV is not powerful enough to propel the vehicle on its own; it simply assists the internal combustion engine when fuel consumption is particularly high. The electric engine within a PHEV can be recharged via a charging socket and is capable of powering the car by itself. It is forecast that MHEVs and PHEVs will account for around 21 percent of global car sales in 2030.