Are ICE cars losing the battle with electric cars or do they still have a chance to survive? According to a survey in the United States, almost 3/4 of Americans said that they plan to buy an all-electric car in the future, and several factors will be decisive: performance, range and lower price.
Currently, the price of electric cars is on the rise, and the demands and expectations of customers are increasing. According to BCG, only 12 percent of customers are satisfied with their electric cars, and it is estimated that this will increase to 30 percent when the next-gen EVs arrive. Buyers want a vehicle that costs under $50k, has a range of 350 miles (563 km) and can be charged in 20 minutes, and there are few cars that can currently meet these requirements. One of them is the Hyundai Ioniq 6 SE RWD Long Range.
New production methods accompanied by new innovations are predicted to bring prices down in the coming years, which will make the production of EVs cheaper than the production of ICE cars. This 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.
Most manufacturers will have no problem meeting customer demands when it comes to range, but charging the battery in 25 minutes is more realistic than the expected 20 minutes. On the other hand, the price will be the biggest problem. Production costs do not depend only on the manufacturer but on global problems that are currently affecting all industries.
Source: BCG
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