{"id":133063,"date":"2019-01-23T15:19:51","date_gmt":"2019-01-23T20:19:51","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=133063"},"modified":"2019-01-23T15:21:30","modified_gmt":"2019-01-23T20:21:30","slug":"evs-expected-to-cost-same-as-gas-powered-cars-by-2022","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2019\/01\/evs-expected-to-cost-same-as-gas-powered-cars-by-2022\/","title":{"rendered":"EVs Expected to Cost Same as Gas-Powered Cars by 2022"},"content":{"rendered":"
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The Chevy Bolt will be joined by two dozen other GM battery-electric vehicles by 2023. GM is all in with its EV strategy.<\/figcaption><\/figure>\n

Automakers are set to overcome one of the biggest obstacles \u2013 cost \u2013 to selling electric vehicles in large numbers by 2022, according to a new study by research firm Deloitte.<\/p>\n

The firm believes that EVs will achieve cost parity with gasoline- and diesel-powered vehicles globally by 2022 \u2013 first happening in the UK by 2021 \u2013\u00a0allowing for an influx of 21 million EVs to be sold within a decade.<\/p>\n

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All Charged Up!<\/figcaption><\/figure>\n

Part of that is the growth in charging networks around the world, which has been funded, in part, by the automakers themselves. Tesla led the charge in this arena setting up supercharging stations in the U.S. and around the world where their vehicles are sold.<\/p>\n

However, Volkswagen is deep into that effort as well. Most of its efforts stem as makegood efforts related to its diesel emissions scandal from 2015. It\u2019s also in the German automaker\u2019s best interest as it pledges to have 50 different EVs in its line-up by 2030.<\/p>\n

(EVs aren’t ready to “take over the world,” says Toyota’s Jim Lentz. <\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

Deloitte\u2019s research reflects the increase of charging stations, i.e. elimination of range anxiety, will accelerate the pace of global EV adoption. The firm believes it will rise from 2 million units in 2018 \u2013 a new record \u2013 to 4 million in 2020, 12 million in 2025, before rising to 21 million in 2030. By 2030, Battery Electric Vehicles (BEVs) will significantly outperform the rest of the EV market, accounting for 70% of total EV sales.<\/p>\n

Deloitte\u2019s analysis points to two factors in accelerating BEV uptake: growing consumer demand for greener vehicles, coupled with government policies that offer financial incentives while placing inner-city restrictions for gasoline and diesel vehicles.<\/p>\n

\u201cIn 2018, we saw global EV sales surpass two million units for the first time; twice those sold in 2017,\u201d said Michael Woodward, UK automotive partner at Deloitte.<\/p>\n

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Finding places for the superchargers for Tesla's fleet isn't too difficult. The car will find a charging station for the driver.<\/figcaption><\/figure>\n

\u201cIn the UK, the cost of petrol and diesel vehicle ownership will converge with electric over the next five years. Supported by existing government subsidies and technology advances, this tipping point could be reached as early as 2021. From this point, cost will no longer be a barrier to purchase, and owning an EV will become a realistic, viable option for new buyers.\u201d<\/p>\n

Making the EV \u201cviable\u201d has been the tricky part of the equation. Battery costs have come down significantly in recent years \u2013 tenfold in fact, but the least expensive current EVs are still too pricey for most buyers.<\/p>\n

(<\/em>Click Here<\/a><\/span>\u00a0to see\u00a0more about VW\u2019s $800 million EV plant coming to Chattanooga.)<\/em><\/strong><\/p>\n

For example, Tesla\u2019s mainstream sedan, the Model 3, is supposed to be the brand\u2019s \u201cpeople\u2019s car,\u201d if you will. The entry-level model is supposed to start at about $35,000. However, that car is not currently available as Tesla can\u2019t make a profit selling that one. You can get a Model 3, but the starting point is closer to $45,000 with the top end nearing $60K \u2014 again too much for the average buyer.<\/p>\n

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The Norwegian government offers a number of incentives to promote EVs, including subsidized charging.<\/figcaption><\/figure>\n

Deloitte sees the influx of new vehicles from other automakers helping to resolve that problem. In fact, various estimates show there could be as many as 100 electric vehicles available to the general public by 2020.<\/p>\n

Growing demand for greener vehicles has seen the majority of OEMs announce their ambitions in the EV market and the emergence of a number of new entrants to the automotive market. However, Deloitte\u2019s research suggest that the number of manufacturers is unsustainable.<\/p>\n

\u201cWhilst there is a distinct trend developing in the EV market, the story is not a clear cut one. As manufacturers increase their capacity, our projections suggest that supply will vastly outweigh consumer demand by approximately 14 million units over the next decade,\u201d Woodward said.<\/p>\n

\u201cThis gearing up of EV production is driving a wide \u2018expectation gap\u2019 and manufacturers, both incumbent and new entrants alike, will need to adapt towards this new competitive landscape.<\/p>\n

(To see more about GM’s new deal on three charging networks, <\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

\u201cThose that can successfully build trust in their brand, ensure a positive customer experience from initial sale through to aftercare, and reflect consumer shifts towards the sharing economy in future business models will successfully navigate this. Equally, continual investment in engineering talent and the formation of partnerships with bespoke battery producers and third-party mechanic networks will also be important.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Automakers are set to overcome one of the biggest obstacles \u2013 cost \u2013 to selling electric vehicles in large numbers by 2022, according to a new study by research firm Deloitte. An influx of lower-cost batteries and more than 100 EVs from different manufacturers will help driver prices down further. Get details at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":119634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,12,9],"tags":[],"make":[],"post-state":[],"category_old":[302,286,150,151,123,287,319,289,155,299,154,132,284,125,139,290,291,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/133063"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=133063"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/133063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/119634"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=133063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=133063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=133063"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=133063"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=133063"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=133063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}