Vehicles with electric drive trains are currently the subject of intense discussion by society. The cost trends of the individual components in the electric drive train are a central aspect of the future market success of the different vehicle drive systems. An innovative two-factor experience curve approach was developed to facilitate the generation of the most meaningful cost forecasts for these components. This enables the creation of a flexible cost forecast model that supplements the two-factor experience curve approach by an analogous technology component. The performance of the model was demonstrated using alternative drive components, namely the proton exchange membrane (PEM) fuel cell stack, a high energy lithium-ion battery and a high power lithium-ion battery. A comparison of the forecast values calculated using this model with the industry targets determined by McKinsey in the study "A portfolio of power-trains for Europe" [1] shows that the realization of these targets for the fuel cell stack is possible if the product volume increases rapidly enough. For the high energy and high power lithium-ion battery targets, the product volume and research and development activity, measured here in terms of patent growth, need to grow compared to the trend of the last years. Copyright (C) 2012, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.