How much do manufacturers earn on electric cars

How much do manufacturers earn on electric cars

June 12, 2020 0 By autotimesnews

Analysts from Lux Research conducted a study on the profitability of electric car production. It turned out that, as before (at the time of the appearance of this new type of vehicles), companies earn practically nothing on them.

Moreover, electric trains are still unprofitable – at best, some brands manage to go to zero. That is why many manufacturers produce only premium electric cars – under such conditions, they manage to at least somehow “recapture” the costs. And they cannot refuse to release them – firstly, due to trends, and secondly – because of constantly tightening emission standards.

However, there is good news, but they concern consumers. Despite this, electric cars have become more attractive for purchase. Over the past time, their power reserve has grown (now it averages 370 km), in addition, they have become much cheaper (if in 2016 the average price of an electric car in the US market was $ 42,189, then already in 2019 – $ 33,901).

However, electric cars are still inferior to fuel-powered cars so far – primarily because of the price and ease of use.

Lux Research claims that electric cars will become profitable when automakers reduce the cost of battery production – now they are the most expensive element of the vehicle. And sooner or later it will be possible thanks to technological progress. The company predicts that between 2035 and 2040, electric vehicles will make up more than half of all car sales.