Electric Vehicles Predicted to Become Cheaper to Produce than Gas Cars by 2027

Thursday, 7 March 2024, 18:55

Market research firm Gartner forecasts that battery electric vehicles will surpass gas-powered cars in production costs by 2027. The report highlights innovations like centralized vehicle architecture and gigacastings that are simplifying production and reducing manufacturing expenses. Despite this cost advantage, concerns arise over the potential increase in repair costs for electric vehicles post-accident, affecting their overall economic viability.
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Electric Vehicles Predicted to Become Cheaper to Produce than Gas Cars by 2027

Electric Vehicles' Path to Cost Efficiency

Battery electric vehicles (BEV) are expected to become more cost-effective to produce than gas-powered cars by 2027, according to Gartner's latest report. The decreasing production costs are attributed to innovative approaches like centralized vehicle architecture and gigacastings, streamlining manufacturing processes.

Challenges in Repair and Maintenance Costs

The shift towards affordable production may lead to an increase in repair expenses for electric vehicles, particularly post-accident. Gartner anticipates a 30% rise in body and battery repair costs by 2027, potentially making damaged EVs more prone to being written off due to high repair expenditures.

Industry Evolution and Company Forecast

Gartner also projects that a significant portion of electric vehicle companies founded in the last decade may face acquisition or bankruptcy by 2027. Despite this, the research emphasizes that superior product quality will be pivotal for companies to thrive in the evolving electric vehicle market landscape.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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