Electric vehicles won’t have an economic advantage over internal combustion engine cars until 2025, reports automotive supplier Continental AG.
In an interview with Bloomberg, Continental chief financial officer Wolfgang Schaefer said the current limitations of EVs won’t be overcome until the middle of next decade.
“High battery costs, limits to driving ranges and charging times mean that electric cars won’t have an economic advantage over combustion engines until 2025,” he confirmed.
Although electric vehicles won’t make more economic sense for customers over ICE vehicles for quite some time, most of the world’s largest automakers are rushing to develop the next-generation range of electric vehicles that are both affordable and have usable ranges.
Daimler is one of the industry’s biggest companies spearheading the charge and intends on spending upwards of 10 billion euros ($10.8 billion) to introduce its EQ range of vehicles. Volkswagen is following closely behind with $9.8 billion planned to launch a fleet of EVs in the next five years. Even Toyota, a long-time skeptic of electric vehicles, confirmed late last year that it was working on its own EVs.
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