The new study conducted by VYGON Consulting provides scenarios on total cost of ownership for EV and gasoline car by 2020 as well as the price sensitivity analysis of current TCO differential to oil prices and battery cost. High oil prices and escalating environmental concerns were the main drivers of establishing today electric vehicle industry. However, the recent oil price downfall has brought EVs to a halt.
The main restraint against electric vehicle mass deployment is its high cost. Up to date substantial fiscal incentives and subsidies supported EVs to withstand fierce price competition. Apparently, implementation of plans to mitigate or phase out several subsidy programs may seriously affect electric vehicle sales.
Research page: “EV vs ICE Vehicles: When to Expect Robust Competition?”.