Cars that charge for health insurance and are connected to the internet are becoming increasingly affordable.
The average cost of an electric car in the United States hit $28,000 last year, a record high for the sector, according to a report released Tuesday by the National Automobile Dealers Association.
It is expected to reach $50,000 in 2021.
In addition, the cost of the battery pack is expected go up to $15,000.
The average price of a car is up about 35% from this time last year according to the report.
The report also showed that electric vehicle costs are dropping, despite a spike in vehicle costs from the Great Recession.
A vehicle with a range of 250 miles or less has a price tag of $3,800, while a model with a 300-mile range will set you back $12,000, according the report from the trade group.
It’s important to note that the report only represents a snapshot of the market, and not a reflection of the costs that car makers and suppliers are charging for their vehicles, said Rob Ritter, the chief executive of the National Car Dealers Council, which represents more than 1,600 auto dealers.
In addition to health insurance, electric vehicles will also be replacing a significant portion of the cars that drive to work, where employees must pay extra to get the same benefits, the report said.
In 2021, about 55% of all car trips will be made by electric vehicles.
The market for electric vehicles is growing, but it will be decades before it reaches parity with traditional cars, Ritter said.
A recent study by the Center for Automotive Research estimated that a quarter of new vehicle sales in 2021 will come from electric vehicles, compared with about one-third in 2020.
The price of an EV will likely be significantly lower in 2021 than in 2020 because manufacturers are getting more affordable, Ritcher said.
The report said automakers have been buying less gas and less battery, but that will likely change in 2021 when gas prices start rising.
The U.K. and France are among the countries where electric vehicles are going to become more affordable and are expected to lead the market in 2021, the authors said.
The growth of the electric car market has accelerated in the past year.
The industry’s share of the global electric vehicle market is projected to grow from 8% in 2016 to 13% in 2021 according to research firm eMarketer.
The market is also expected to grow faster than the U, U.N. emissions-trading system, according a report from eMarketers.
A number of countries have announced plans to phase out diesel engines in new vehicles.
The United States, which has been one of the biggest exporters of electric vehicles in the world, plans to reduce its electric vehicle fleet to 1 million by 2025.