Wednesday , January 27 2021

Expensive electric cars in the long run



Even with the beginning mass production of electric cars Stromer for now are not cheaper, because prices for the batteries of vehicles, which will not decrease, apart from the expected, but increase. "We are currently experiencing an increase in the price of batteries for electric cars, which should actually decrease with increasing demand," said Ford Germany boss Gunnar Herman of "Welt am Sonntag".

"Typically, components are cheaper if you order large quantities, but the opposite is the case with electric car batteries," continues Herman. In BMW as well, one expects higher prices for battery systems – and they are the biggest price factor for electronic vehicles.

"Electric vehicles have a significant disadvantage in manufacturing costs compared to conventional burners – mainly due to raw material battery prices," said BMW Development Board Klaus Fröhlich. "Due to global demand, their costs are rising steadily," continued Fröhlich. Today, unlike the rest of the industry, suppliers can dictate prices to producers. After all, the production capacities they will remain significantly lower than the demand for now.

"I expect the prices for these batteries to rise by about 10 percent in the medium term, and if the forecasts that come to the right are correct, we should expect electric batteries in the neck," Hermann predicts. Thus, electric cars, which are already much more expensive than models with internal combustion engine in the long run continue to remain significantly more expensive to buy. In addition, cars will probably be more expensive overall.

"With the high cost of batteries, it would not be worth equipping small cars," said Herman. At most they will have a future with gasoline engines – but it will only be for a limited time. After tightening the CO2 limits planned by the European Commission, most small cars also emit too much emissions. "With medium and high electric cars, we'll have to offset the CO2 emissions of small cars above the boundary values, which in the long run will not be a business model for the car manufacturer," says Herman.

The result is that entry-level portability is more expensive.


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