In 2024, automakers will continue to wrestle with shifts caused by software and electrification’s increasing roles creating a new phase for electric vehicles , according to Gartner.
By 2027, Gartner predicts next-generation battery electric vehicles will, on average, be cheaper to produce than a comparable internal combustion engine . As OEMs move on to disruptively transform their manufacturing operations in tandem with product design, the coming years will see BEV production costs drop considerably faster than battery costs.
Gartner predicts that by 2027, the average cost of an EV body and battery serious accident repair will increase by 30%. As a result, vehicles suffering a collision may be more prone to a total write-off as the repair could cost more than its residual value. Equally, more expensive crash repairs may lead to more expensive insurance premiums or even the refusal of insurance companies to cover particular car models.
“With the perceived promise of easy gains, many startups gathered into the EV space – from automakers to EV charging – and some are still heavily dependent on external funding leaving them particularly exposed to market challenges,” says Pacheco. “In addition, EV-related incentives are being progressively phased out in different countries which makes the market more challenging for incumbents.”