We all know one of the major disadvantages of acquiring an EV today is the significantly higher price compared to an internally combustion engine-equipped equivalent competitor.
According to a recent study coming from global automotive supplier Continental AG, automakers looking to introduce a wide array of electric cars will initially have to bear the high costs derived from the technology until around 2025. The automotive industry is pushing to bring ever cleaner models to the market, but “High battery costs, limits to driving ranges and charging times mean that electric cars won’t have an economic advantage over combustion engines until 2025,” comments Continental’s Chief Financial Officer Wolfgang Schaefer. Companies are spending a chunk load of cash to bring electric vehicles to market due to the stricter emission rules implemented in Europe, the US or China.
Volkswagen AG – which needs to become greener also due to the Dieselgate scandal – will triple its inputs into alternative powertrains to 9 billion euros in just five years. Daimler is another major player looking to invest heavy – 10 billion euros have been pledged for the transformation process. Continental, Europe’s second-largest supplier to the industry, thinks it will take a while before they will reap the benefits. That’s because green cars only make a tiny fraction of the total – European alternative sale (EV and hybrid), surged 36 percent in the first quarter to 235,438 units, according to ACEA. But for the same period, combined new registrations during the quarter stood at 1.94 million vehicles.