Envision director explains why, in 3-4 years, battery-powered cars will cost as much as combustion ones
The price of electric cars is still higher today than gasoline cars, but that difference may soon be a thing of the past. While total cost of ownership (TCO) is already competitive in some markets, thanks to low maintenance costs and tax benefits, initial cost parity is also close.
Envision Racing, a battery-powered single-seater racing team in Formula E, is sure of that. And who spoke on behalf of the team was director Sylvain Filippi, who participated in the Impact event organized by Reuters. How long until the revolution? Not much: 3-4 years maximum.
Combustion? Age Badly
“In 2025 or 2026 we will start to see the break-even point on the supply side, at least in developed countries”, his words. “That’s the tipping point. When we get there, we’ll be able to produce electric cars on a massive scale. Then the floodgates will open.”
‘At that point’, Filippi is sure, ‘buying an internal combustion car will be a bad idea, because the original value of these vehicles will be nil. They will turn into something negative, and I believe the transition will accelerate very quickly.”
Everything will, of course, depend on the market. But where are we today? And what are the prospects? According to a study published a few months ago by AlixPartners, electric cars accounted for 8% of global sales in 2021, while in the first quarter of this year they approached 10%.
To support demand, manufacturers will invest at least 526 billion dollars (529.5 billion euros) from now until 2026. Global registrations could reach 33% in 2028 and 54% in 2035. Cost parity, however , could come sooner.