Price parity between petrol and electric cars over the years: expert
Rising production costs for electric car batteries have kept gas-powered cars more affordable than plug-in alternatives, according to a senior auto industry executive.
The CEO of French carmaker Renault said the price difference between gasoline and electric cars may not reach parity before the next decade due to the rising cost of precious metals used in batteries.
In an interview with Automotive News Europe at the Paris Motor Show last week, Renault global chief Luca de Meo said: "I don't see that parity getting any closer."
As Drive reported last week, the new electric BMW iX1 costs $17,000 more than the gasoline-powered flagship X1, an increase of about 26%.
Similarly, the Genesis Electrified GV70 requires a premium of $45,000 over the previous and more expensive gas-powered version of the midsize SUV, with a 55% price increase.
According to Mr. De Meo, the auto industry predicted in 2014 that the cost of an electric car battery per kilowatt-hour would be around $100 by 2019.
A report by Reuters news agency found that the average cost per kilowatt-hour for a battery was close to $115 in April 2022 and is expected to reach around $120 by 2023.
A study by US financial advisory firm AlixPartners found that the prices of commodities such as lithium, nickel, manganese and cobalt rose more than 140% between March 2020 and June 2022.
According to Mr. De Meo, the auto industry predicted in 2014 that the cost of an electric car battery per kilowatt-hour would be around $100 by 2019.
A report by Reuters news agency found that the average cost per kilowatt-hour for a battery was close to $115 in April 2022 and is expected to reach around $120 by 2023.
A study by US financial advisory firm AlixPartners found that the prices of commodities such as lithium, nickel, manganese and cobalt rose more than 140% between March 2020 and June 2022.
Renault earlier announced that it aims to have sales of new cars in Europe to be 100% electric models by 2030, five years before the European Union's proposed ban on petrol and diesel cars.
While Renault is still aiming for that goal, de Meo says it's customers, not automakers, who will decide when gas-powered cars die.
Renault was one of the first automakers to mass-produce an electric car, the Zoé.
Despite its early adoption of electric vehicles, the company's Australian model range currently consists of one zero-emissions model, the Renault Kangoo Z.E.
Renault plans to expand its range of electric vehicles abroad with passenger cars, such as the Megane E-Tech and the reborn Renault 5, and utility vehicles, including the Master and Trafic.
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