From 2024 onwards, electric cars should have the same production cost as conventional vehicles, with combustion engines, which could result in a drop in prices for sustainable models. This is suggested by a study released last Wednesday (21), by the investment bank UBS.
The cost of making an electric-powered car is expected to fall to around $ 1,900 more than the amount needed to produce a gasoline-powered car in 2022. Following the rate of decline, this difference will no longer be exist already in 2024, as the research points out.
To reach this conclusion, the bank took into account the production of batteries, one of the main reasons for the difference in prices between the two types of vehicles – the component represents between one quarter and two fifths of the total cost of an electric car.
After analyzing in detail the batteries of the seven largest manufacturers in the world, including companies such as Japan’s Panasonic, Korea’s LG Chem and China’s CATL, UBS said the costs of producing the component could drop to less than $ 100 per kWh by 2022 .
Increase in market share
With the drop in electric prices, the investment bank believes that these models considerably increase its market share. They are expected to represent 17% of global sales in 2025, rising to 40% in 2030.
“There are not many reasons to buy a conventional car after 2025,” commented UBS analyst Tim Bush in an interview with The Guardian. For him, cheaper batteries will also be beneficial for hybrid vehicles, which will also have reduced prices.
Even though it costs more, currently, 1 million electric and hybrid cars are expected to be sold in the European Union by the end of this year.