The cost of owning an electric car will fall to the same level as petrol-powered vehicles next year, according to bold new analysis from UBS which will send shockwaves through the automobile industry.
Experts from the investment bank’s “evidence lab” made the prediction after tearing apart one of the current generation of electric cars to examine the economics of electric vehicles (EVs).
They found that costs of producing EVs were far lower than previously thought but there is still great potential to make further savings, driving down the price of electric cars.
The 2017 car - which cost $37,000 - was taken apart piece by piece and the parts analysed. UBS said that the Bolt’s electric drive was $4,600 cheaper to produce than thought, “with much cost reduction potential left”.
The current issue is mainly due to a lack of scale in sales.... “Once total cost of ownership parity is reached, mass-brand EVs should also turn profitable,” UBS said.