Nissan Says EVs Will Reach Price Parity in 2025

Nissan Motor Co. calculates that the price of electric cars will drop to those of comparable gasoline and diesel-powered models in seven years.

The company tells the Financial Times “2025 will be the turning point,” thanks to cheaper batteries. Price parity will end the need for government subsidizes that have been essential for EV sales growth to date.

Nissan alliance partner Renault SA came to the same conclusion, at least for C-segment vehicles, last year. Renault predicts parity for B-segment cars will occur in 2020.

Other factors, such as increasing driving range and faster-charging systems, will help bolster consumer demand. EVs also have roughly one-fifth as many moving parts and are easier to maintain than conventional cars.

UBS says the total cost of EV ownership in Europe— including charging and maintaining the vehicle—could drop below that of a traditional piston-powered car as soon as this year.