Electric Vehicle Prices Expected to Drop Significantly by 2027

Electric Vehicle Prices Expected to Drop Significantly
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The cost of electric vehicles (EVs) is forecasted to decrease substantially in the coming years, according to a new analysis by Gartner, a leading research and consultancy firm.

Gartner estimates that EV battery prices will continue their steady decline, a trend that has been ongoing for several years. However, a major new development highlighted is the emergence of advanced manufacturing techniques like “gigacasting.” This process involves casting large sections of the vehicle body as a single piece, eliminating the need for dozens of welds and bonding joints. Gartner predicts gigacasting will reduce body costs by at least 20%.

The analysts credit Tesla as a pioneer in commercializing gigacasting, which represents a significant shift in automotive manufacturing processes. They emphasize that it is crucial for automakers to introduce more affordable EV models, as consumer demand has dropped markedly in key markets like the United States and Europe.

“We are entering a new phase where battery electric vehicles can no longer sell exclusively on the merits of incentives or environmental credentials. They need to be a stellar product in every regard compared to internal combustion engine vehicles,” stated Pedro Pacheco, Gartner’s Vice President of research.

With battery costs declining and manufacturing innovations like gigacasting driving down vehicle production expenses, Gartner’s forecast points to electric cars becoming much more affordable and competitive with gasoline-powered automobiles by 2027. This could mark a tipping point for mass EV adoption as the sticker price has been a major barrier for many consumers.

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