According to market research firm Gartner, battery electric vehicles will become cheaper to produce than traditional internal combustion engine vehicles by 2027. This is due to new manufacturing methods that are reducing production costs. Gartner predicts that production costs will decrease at a faster rate than the cost of batteries, which currently make up around 40% of the total cost of an electric vehicle.
According to a market research firm, the average cost of repairing an electric vehicle's body and battery after a serious accident is expected to rise by 30% by 2027. This could lead to more vehicles being considered a total write-off, as the cost of repair may surpass their residual value.
The high costs associated with repairing EVs are already a concern among potential buyers. Gartner warns that if reductions in production costs come at the expense of higher repair costs, there could be a consumer backlash.
The research firm also predicts that approximately 15% of EV companies founded since the last decade will either be acquired or go bankrupt by 2027. However, this does not mean that the EV sector is crumbling. It is simply entering a new phase where the companies with the best products and services will come out on top, as stated by Pacheco.