Monday, June 17, 2024
NewsThe Car Market Could Collapse if EVs Remain More Expensive, According to...

The Car Market Could Collapse if EVs Remain More Expensive, According to Stellantis

Stellantis believes that electric vehicles will have to become more affordable in the current decade in order to avoid a collapse of the auto industry.

  • Electric vehicles have always been more expensive than equivalent models powered by combustion engines

  • The automaker says the demand for new vehicles could drop significantly when cheap gasoline-powered cars are phased out

  • The company wants to introduce 75 EVs around the world by 2030

Stellantis believes that the car market could collapse if electric vehicles don’t get more affordable before gasoline and diesel-powered models are discontinued by the middle of the next decade.

This prediction is based on the idea that the demand for new vehicles will drop dramatically when cheaper models powered by combustion engines will be banned in the next decade if there aren’t any electric alternatives in the same price class.

If this happens, many buyers would have no choice but to turn to used vehicles instead, which would leave only luxury vehicles to have a level of customer demand that is profitable for the automaker.

The officials at Stellantis have often exposed their concerns about electrification but this doesn’t keep them from trying to adapt to the current situation.

Indeed, the company already has a number of EVs on sale in Europe and it is about to introduce its first electric model in North America next year, to be sold under the Jeep brand.

In addition, Stellantis plans to add 75 new electric models to its global lineup by the end of the current decade. In order to be able to make a profit on these vehicles while keeping them affordable, the company wants to reduce its production costs by 40% in the same timeframe.

The cost difference between electric and gasoline vehicles could decrease in the next few years due to a drop in lithium prices. Indeed, experts believe that the numerous new mining operations that are currently being set up will lead to an increase in the production of the material, which should bring its cost back down to a more manageable level.

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