In just three years, the car brands will be able to build cheaper electric cars than fossil cars. But this does not mean that the industry avoids a bloodbath, predicts the research firm.
Already in three years – i.e. in 2027 – the electric car will on average be cheaper to build than the fossil car. This is predicted by a new survey from the research firm Gartner.
But that doesn't mean that the car brands that currently only build electric cars should start rejoicing way too soon. Far from actually.
This is what the analysis firm writes in a press release .
Because even though a number of new car brands have thoroughly shaken up the car industry, many of them cannot be expected to survive.
READ ALSO: 40,000 electric cars with terrible problem are being recalled again
As much as 15 percent of new car brands end up turning the corner, reads the message from Gartner. And that is not the only warning in the analysis.
Because although the electric cars will be cheaper to manufacture, Gartner does not believe that the picture will be the same over the entire life of the car. And especially not if/when something goes wrong.
In fact, the analysis is based on the fact that it will be up to 30 percent more expensive to repair damage to the bodywork and battery packs in electric cars in the future.
This may ultimately mean that more electric cars end up as total losses. And that some insurance companies directly refuse to insure certain car types.
But back to the fate of the car brands. Because even though Gartner expects that 20.6 million new electric cars will be sold worldwide in 2025, not all car brands will survive.
According to analysis, 15 percent of all car brands that can be described as so-called start-ups today will end up being absorbed by established car brands or will have gone bankrupt in 2027.
An announcement that is actually in line with several car brands' own predictions. In any case, Carlos Tavares, who is the managing director of the world's fourth largest car group, has already predicted a carnage in the car industry. Read more about it here .
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