Electric cars could put the brake on UK petrol and diesel spending by up to 40 per cent, according to researchers.
By 2030 the cost of fuelling the average new low carbon car could be £600 cheaper than the average car today, with electric cars saving almost £1,000 every year in reduced fuel bills, says a new report by Cambridge Econometrics.
Nationwide, the cost of petrol and diesel would be reduced to £20bn in 2030 compared to £33bn if cars continued to use today's technologies. While some of this would be offset by the cost of new technologies, the overall national cost of running and replacing cars would be up to £7bn lower, depending on the oil price.
The paper outlines that improvements to the efficiency of internal combustion engines are already saving drivers hundreds of pounds a year and that further progress alongside advances in technologies such as lighter construction materials, more efficient tires and the gradual introduction of electric propulsion will reduce energy costs further.
This focus on low carbon technologies could cut CO2 emissions from the UK car and van fleet by as much as 47 percent by 2030 - and 80 percent in 2050 - the researchers says.
Moreover, the health benefits associated with reducing air pollutants blamed for respiratory problems, such as nitrogen oxides and particulates, would be worth around £1.2bn to the UK economy.
UK sales of electric cars quadrupled over the past year and are expected to continue rising as around 40 new low emission models hit the market in the coming three years. US-based BCC Research calculates the global market for electric vehicles will rise from $73bn last year to almost $110bn by 2019.
The UK government has identified it as a key market for growth, investing £500m over the next parliament into advancing ultra-low emission vehicles (ULEVs) and backing the £1bn Advanced Propulsion Centre in conjunction with industry. However, representatives of the auto-industry urged the government to ensure development of the industry is supported by legislation.