"There are not many reasons to buy a conventional car after 2025," UBS analyst Tim Bush told The Guardian.
By 2024, electric cars should have the same production cost as conventional vehicles, with combustion engines, which may result in a drop in the prices of sustainable models. This is what is suggested by a study released last Wednesday (21), by the investment bank UBS.
The cost of manufacturing an electric-powered car should fall to near $1,900 more than the amount needed to produce a gasoline car in 2022. Following the pace of decline, this difference will cease to exist as early as 2024, as the research indicates.
To reach this conclusion, the bank took into account the production of batteries, one of the main reasons for the price difference between the two types of vehicles - the component represents between a quarter and two fifths of the entire cost of an electric car.
After analyzing in detail the batteries of the world's seven largest manufacturers, including companies such as Japan's Panasonic, Korea's LG Chem and China's CATL, UBS said the costs to produce the component could drop to less than $100 per kWh by 2022.
Increased market share
With the fall in electricity prices, the investment bank believes that these models will considerably increase its market share. They are expected to account for 17% of global sales in 2025, rising to 40% in 2030.
"There are not many reasons to buy a conventional car after 2025," UBS analyst Tim Bush told The Guardian. For him, cheaper batteries will also be beneficial for hybrid vehicles, which will also have their prices reduced.
Even though they cost more, 1 million electric and hybrid cars are currently expected to be sold in the European Union by the end of this year.