EVs will be cheaper to produce than gas-powered vehicles by 2027, research shows

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Battery electric vehicles will be, on average, cheaper to produce than a comparable internal combustion engine by 2027 thanks to new manufacturing methods that are lowering production costs, market research firm Gartner said on Thursday.

A vehicle is plugged into a Electrify America electric vehicle charger, Friday, Feb. 2, 2024, in Kennesaw, Ga., near Atlanta.

"This means BEVs will reach ICE cost parity much faster than initially expected, but at the same time, it will make some repairs of BEVs considerably costlier," said Pedro Pacheco, Vice President of Research at Gartner. It also expects that about 15 per cent of EV companies founded since the last decade will be acquired or bankrupt by 2027.

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