New studies and predictions show a big change coming: cheaper electric vehicles will be soon available. Market research firm Gartner announced on Thursday that BEVs will become cheaper to produce compared to ICE by 2027, thanks to lower production costs of new innovative manufacturing methods.
“This (the new technology) means BEVs will reach ICE cost parity much faster than initially expected, but at the same time, it will make some repairs of BEVs considerably costlier,” Pedro Pacheco, Vice President of Research at Gartner, said.
The firm confirm that parts for electric cars, especially the batteries, are getting cheaper. They are making more of them, and it’s becoming easier to get the parts needed, the firm said. Since batteries are a big part of the electric car’s price, about 30-40 percent of the EV’s purchase price, these changes could really mix things up in the car business.
The Drawbacks
However, the news isn’t all positive. Gartner warns of a potential increase in repair costs for EVs. By 2027, fixing the body and battery of an EV after a serious accident may become 30% more expensive. This hike could lead to more vehicles being deemed total losses if repair costs exceed their residual value. The firm suggests that consumer backlash is possible if these reduced production expenses lead to higher repair bills.
Despite the concern over repair costs, the move towards more affordable BEVs is significant. As EVs become more economically viable, the market could see a shift in consumer preferences.
Other Companies Aiming for Cheaper EVs
It is worth noting that General Motors and Honda are also working together on some affordable electric cars. They’re using new battery tech called Ultium batteries and plan to sell these cars for less than $30,000. This could mean that more people might be able to buy electric cars by 2027.
As things change in the automotive industry, buyers will have more electric vehicles to choose from. Alfa Romeo, for example, is planning to only sell electric cars, and there will be new kinds of electric cars that don’t cost as much and work better. By 2027, traveling in vehicles could look very different.
Making cheaper electric vehicles available is not just about saving money. It’s also a critical move to fight climate change by using less oil and gas.
