With the recent research on electric cars by many auto industry, one might wonder if electric cars will sell at a higher price or cheaper than petrol powered cars.
A report by the Telegraph has revealed that auto industries are working towards ensuring that electric cars sell at the same price as petrol and diesel powered cars.
Experts from Evidence lab predicted that by 2018 electric cars will sell at the same price as petrol cars after they tore apart one of the latest generation of electric cars to examine the economics of electric cars.
They added that the price of producing electric cars is cheaper than anticipated and the cost could be cut down even lower but there is still great potential to make further savings.
As a result, UBS forecasts that the “total cost of consumer ownership can reach parity with combustion engines from 2018”, with this likely to happen in Europe first.
“This will create an inflexion point for demand,” the analysts said. “We raise our 2025 forecast for EV sales by ~50pc to 14.2m – 14pc of global car sales.”
The 2017 car – which cost $37,000 – was taken apart piece by piece and the parts analysed. UBS said that the Bolt’s electric drive was $4,600 cheaper to produce than thought, “with much cost reduction potential left”.
Professor David Bailey, car industry expert at Aston University, said: “If this really is the moment that the car industry reaches parity then the inflexion point is far earlier than anyone was expecting.”
Ian Fletcher, principal automotive analyst at IHS Markit, added: “We are not going to see the death of diesel or petrol anytime soon but manufacturers are weighing up the investment cost of traditional engines against electric, as well as the levies they face over the emissions of their fleets.”
“We estimate that GM (which produces the Bolt) loses $7,400 in earnings before interest, and tax on every Bolt sold today, mainly due to a lack of scale.”