The price of new electric cars is on the rise, but new production methods accompanied by new innovations are predicted to bring prices down in the coming years. This would mean that the production of EVs will be cheaper than the production of ICE cars.

This prediction is based on the gigacasting process, in which, with the help of a huge press, large parts of the body are cast in one piece, instead of using dozens of welds and fasteners. Tesla was the first to use this method of producing components, and the fact that thanks to this method the Tesla Model Y was produced in 10 hours, instead of the 30 hours required for the production of the VW ID.3, shows how much of a difference it makes.

However, this method will increase the cost of car maintenance and repair. By 2027, the average cost of repairing an EV’s body and battery after a car accident is predicted to be 30 percent more expensive. This could mean the end of every damaged car, as it will be more profitable for owners to buy a new one than to repair a damaged vehicle.

Also, the price of vehicle insurance will rise, so some insurance companies will avoid providing insurance for some cars.

Source: Reuters