EVs will be cheaper to produce than gas-powered cars within 3 years, market research firm says

Battery electric vehicles (BEVs) will be cheaper on average to produce than gasoline-powered cars by 2027, according to market research firm Gartner.

Gartner predicted in its report: Published on ThursdayProduction costs are expected to fall much faster than battery costs, which account for about 30-40 percent of an EV’s purchase price. According to the Environmental Defense Fund.

Pedro Pacheco, Gartner’s vice president of research, said the company reached this prediction in the wake of “new innovations that simplify production costs.” These innovations include “Centralized vehicle architecture“And the Start of GigacastingThis allows larger aluminum parts to be produced, reducing manufacturing costs and assembly time.

“This means BEV will reach its next goal. [internal combustion engine] “Costs have leveled out much faster than originally expected, but at the same time, some repairs for BEVs will now be significantly more costly,” Pacheco added.

The report also estimates that the average cost of repairing electric vehicle bodies and batteries from serious accidents will increase by about 30 percent by 2027. The researchers noted that this could make it easier for vehicles involved in accidents to have their repair costs written off in full. It costs more than the rest.

In recent months, concerns have been raised about high EV repair costs and hidden costs that electric car owners don’t necessarily understand at the time of purchase.

A study conducted in January by KLAS in Las Vegas found that the technology and computers used in EVs are a major contributor to higher costs. KLAS is owned by his Nexstar Media Group, which also owns his The Hill.

Gartner also made grim predictions for some EV companies founded in the past decade. According to the report, the company expects 15% of companies founded during this period to be acquired or go bankrupt by 2027.

“This doesn’t mean the EV sector is collapsing,” Pacheco said. “We’re just entering a new phase where the companies with the best products and services will beat out the rest.”

EVs have become increasingly popular in recent years, and Garner predicts that EV shipments will reach 18.4 million units in 2024 and 20.6 million units in 2025.