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The cost of ownership for electric vehicles (EVs) could match petrol and diesel cars within the next five years, according to new research conducted by Deloitte.

The study reveals that consumer concerns regarding the upfront costs of purchasing EVs will gradually wane as technology improves.

A total of two million EVs were sold worldwide in 2018, and as prices approach parity with petrol and diesel vehicles, EV sales are expected to reach 4 million by 2020.

The number is expected to reach 12 million by 2025 and 21 million by 2030.

Factors to drive demand to include growing consumer demand for greener vehicles and increase in government incentives for EV ownership.

Michael Woodward, UK Automotive Partner at Deloitte said: “In the UK, the cost of petrol and diesel vehicle ownership will converge with electric over the next five years.

"Supported by existing government subsidies and technology advances, this tipping point could be reached as early as 2021. From this point, cost will no longer be a barrier to purchase and owning an EV will become a realistic, viable option for new buyers.”

The report, however, cautions that projections for supply will greatly outweigh consumer demand by approximately 14 million units over the next decade as manufacturers increase production capacity.

Woodward added: “Those that can successfully build trust in their brand, ensure a positive customer experience from initial sale after through to aftercare and reflect consumer shifts towards the sharing economy in future business models will successfully navigate this. Equally, continual investment in engineering talent and the formation of partnerships with bespoke battery producers and third-party mechanic networks will also be important.”