The good news is coming to the electric vehicle market. According to reports by the EBS, electric vehicles will be similarly priced to conventional cars by 2024. This outcome is due to a move to make electric vehicles mainstream by 2030. Emerging news shows that EV manufacturing will experience a drop in electric motor vehicles’ price entering the market. Reports from the seven significant car manufacturers reveal that electric vehicle prices will drop to $1900 by 2022. There are expectations that 2024 will see similar prices between electric vehicles and conventional internal combustion engine cars.
For a long time, electric vehicle prices were significantly higher compared to fossil fuel-driven cars. This reason might be the cause of minimal sales because electric vehicles were seen as a luxury item. The recent trend to bring the cost of electric vehicles to be on par with internal combustion engines is a significant achievement for the electric vehicle industry.
This result is a critical factor for electric vehicle start-ups because significant manufacturers in the car industry are slow to adapt EV infrastructure because of the high prices of battery components. The car industry depends on East Asian companies to supply the batteries for their electric vehicles. The most significant electric vehicle battery manufacturing players include South Korea’s LG Chem, Japan-based Panasonic, and CATL from China. That price takes up to 30 of the cost of the car from non-native battery manufacturers.
UBS expressed its expectation that the cost of buying an electric vehicle will drop to less than $100 per kilowatt-hour. This sequence is a significant achievement if it will be done by 2022. It also made out that car companies still relying on internal combustion engine technology are at risk of not evolving with the times. Notable players in the market are already shifting to electric vehicle manufacturing. Such Players include Tesla and Volkswagen take the majority of sales by volume in the market.
Volkswagen is underway preparing to shift its manufacturing Systems by announcing that it will dedicate 33 billion dollars’ worth of investment into its electronic Car division. Additionally, he also stated that the dropping Retriever price also affects hybrid vehicles’ production because electric cars will be easily accessible. Electric vehicles are changing the landscape of transportation using renewable energy. While the venture is a novel idea, prices of acquiring electric vehicles usually kept the public away from the incentive to buy them. However, the project to reduce electric vehicles’ cost is perceived as the answer to adopting EVs into public consumption.