Electric cars cheaper soon?

Jaguar Land Rover CEO: the price will not reduce for five years


Jaguar Land Rover boss: electric cars won't get cheaper soon

The price of batteries for electric cars won't come down for up to five years, according to Jaguar Land Rover CEO Ralf Speth.

As a result, he wants to see charging infrastructure drastically improve to allow drivers to feel more confident. Should that happen, car makers won't have to fit batteries as large as they currently do to their electric cars, bringing the costs down as a result because the battery is often the most expensive component.

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Will electric cars start to get cheaper soon?

By Daniel J. McLaughlin

Electric cars are the future of our roads, but there is a debate whether that is a near or distant future.

They are still too expensive, with the cost of batteries meaning that they have not made it to the mainstream yet.

However, this could change. A report claims that electric cars could be cheaper than petrol and diesel cars within the next five years.

The Jaguar Land Rover CEO disagrees with this prediction, arguing that battery prices will not reduce for three to five years.

The Claim

Electric cars are set to be cheaper to buy than petrol and diesel cars "much sooner than expected", the Express reports.

Analysis from Bloomberg New Energy Finance claims that electric cars will cost less than internal combustion engined (ICE) cars by 2022.

The Express reports: "One of the barriers preventing a lot of motorists from making the switch from petrol and diesel to electric is the higher upfront cost...

"The point when EVs become cheaper than ICEs has been described as a ‘crucial moment’ for the market and will certainly remove one of the biggest obstacles standing in the way of mass adoption."

The difference of costs between electric cars and ICEs is narrowing every year - and within five years, they could be cheaper.

This is due to the cost of batteries in electric cars. They were once half the cost of an electric car - but that figure is around a third now. By 2025, this could fall to a quarter of the entire cost.

The Counterclaim

However, Jaguar Land Rover CEO Ralf Speth does not believe that electric cars will get cheaper soon.

Speth claims that battery prices will not reduce for the next five years, Autocar reports.

He said: "I hope the infrastructure is fixed. The price of electric cars is still too high, as we need to do a big range.

"So, you have a big battery that is needed, as you can’t charge the car. If you can charge, we can make the battery smaller and bring the cost down.

"There will be no reduced cost for three to five years."

The CEO added that there needs to be "more quality and more quantity" of charging networks, that are "more standardised and provide faster charging".

Speth argues: "You clearly need a good spread across the country, not just in London."

The Facts

There is an estimated 223,000 electric cars currently on UK roads.

The sales of new electric cars rose by 21 per cent last year. There were 60,000 electric cars registered in the UK in 2018 - that means a new electric car was registered every nine minutes.

Britons are, however, hesitant when it comes to electric cars. A survey of 1,000 UK drivers by MoneySuperMarket found that 49 per cent had never considered buying an electric or hybrid car.

Just over half of drivers (51 per cent) said that price was the biggest barrier to buying an electric vehicle.

Analysis by audit firm Deloitte predicts that there will be an extra 21 million electric vehicles across the world in the next decade.

There were two million electric cars globally last year, and this is set to double by 2020. It will reach 12 million by 2025.

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