GM Says Its EVs Will Cost The Same As Its ICE-Powered Models

There may be a growing number of car manufacturers venturing into the world of electric vehicles, but turning consistent profits while building such vehicles isn’t easy, as Tesla can attest to. General Motors thinks it can do things different.

The car manufacturer is embarking on an ambitious plan to sell 20 electric models globally by 2023, and GM president Mark Reuss believes EVs will soon have the same price as conventional gas- and diesel-powered vehicles.

“We’re going to reach parity a lot sooner than people think,” he said. “(ICE) compliance will become expensive. All these things and more will lead to greater consumer acceptance of EVs, plus they are going to be great cars.”

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Reuss says the company is driving down the costs of batteries and cars and will eventually start making money by selling EVs, Bloomberg reports.

No company knows better than Tesla about how hard it is to make money selling electric vehicles in this day and age. The Californian company has recorded a few profitable quarters in recent years, but its performance has been patchy – at best. Its Model S and Model X are also luxury vehicles, and thus priced way higher what most EVs from GM are expected to cost.

Bloomberg notes that the average price of a new vehicle today in the United States is about $37,000, which is on par with the sticker price of the all-electric Chevrolet Bolt. Still, right now GM loses thousands of dollars on each Bolt it sells, so this is not a fair comparison. A basic ICE-powered hatchback or sedan similar in size to the Bolt can be purchased for under $20,000, showing that there is still some way to go before parity is met.