According to Volvo CEOby 2025, the automaker will be able to sell its cars electricity for the same price to which the cars are currently offered endothermic engine. Basically, EVs will have the price of petrol and diesel cars.
Will they finally become accessible to the lower middle class? Not really. On the contrary: not even an idea. But let’s go in order.
The comment came on the sidelines of a presentation event for the new EX90 SUV. On that occasion, Jim Rowan explained to the press that he is sure that the price parity it’s coming in a few years. “We think we will reach price parity between electric and internal combustion engines around 2025,” he said. In addition, he believes that by 2025 it will be possible to significantly reduce the production costs of batteries, which are still one of the most expensive items of expenditure in the electric car supply chain. “We’re coming,” Rowan said.
The manager’s claims are not far-fetched. Indeed, it is likely that over the next three years we will see a significant reduction in the cost of batteries and, consequently, a reduction in the price of Entry-level EVs. However, Rowan’s statements must be put in context: the parity he is talking about has in fact been compared to Volvo’s internal combustion engine vehicles, a brand that produces only mid-range and high-end cars with a minimum price of 40 thousand euros.
In the segments where Volvo is present, it will certainly be possible to reach price parity by 2025. But in the cheaper segments it is currently simply impossible, there would be no margin
said Sam Abuelsamid, an analyst at Guidehouse Insights. In short, will Volvo’s EVs cost as much tomorrow as the diesel SUVs currently on sale? Good for those who can afford them.
Source: Lega Nerd
