Same price for EVs and Gas cars by 2025?

The battle of EVs and Gas cars is expected to reach its peak in 2025 after Volvo makes a forecast extremely optimistic about the price of electric cars in the near future.

EVs are gaining more and more market share from Gas cars every day. But how much in the future will we see them flooding the streets? The big obstacle to this is their price.

Charging infrastructure, production delays, material shortages are clearly also problems, but the most important thing is the high price.

• Volvo accelerates its transition to electrification

Now, Volvo claims that in the future electric vehicles (BEV) will cost the same as their conventional counterparts as early as 2025.

The automaker plans to switch to producing all-electric cars by 2030. It is withdrawn from any programs for the development and manufacture of internal combustion engines and focuses exclusively on the development of electric powertrains. In the middle of the decade, it plans at least half of its production to be electric vehicles and the other half hybrid.

The high price of electric cars is mainly due to the cost of the battery. At the same time, the global chip shortage, the increase in the price of fuel and energy, as well as the delays due to the pandemic, play a role.

Volvo CEO Jim Rowan said electric cars and SUVs will cost about the same as their current ICE equivalents in just two to three years and stressed that companies should not rely on government subsidies for success.

“We believe that we are reaching the price parity around 2025, where there will be enough technology that reduces the cost of the battery. The technology will help to have a longer range than fewer and smaller batteries,” he said.

[via]