EV Production Costs to Undercut Gas Vehicles by 2027, Gartner Predicts

Market research firm Gartner forecasts a significant drop in electric vehicle production costs, potentially making them cheaper than gas-powered cars within three years.

• Gartner's report indicates that innovations in manufacturing, such as centralized vehicle architecture and gigacastings, will drive down the production costs of battery electric vehicles (BEVs).
• By 2027, the average cost to produce BEVs is expected to be lower than that for internal combustion engine (ICE) vehicles, marking a pivotal shift in the automotive industry.
• The report also warns of a potential increase in repair costs for electric vehicles, with estimates suggesting a 30% rise in the cost of body and battery repairs after serious accidents.
• Approximately 15% of EV companies founded in the last decade are predicted to be acquired or go bankrupt by 2027, highlighting the competitive and evolving nature of the sector.
• Despite these challenges, Gartner remains optimistic about the future of electric vehicles, predicting continued growth in market penetration and shipments in the coming years.

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