By One of the reasons why EV car sales are still low is because of its cost as mass-market electric cars are yet to reach markets, especially in developing countries. But it is going to change in coming years as according to recent media reports, the production costs of EVs are expected to be the same as traditional internal combustion engine (ICE) vehicles within the next three years. This shift could significantly alter the landscape of the automobile market, making EVs more accessible to a broader range of consumers. However, the rising cost of repairing electric vehicles is a concern for the industry.
Industry analysts suggest that by 2027, the average cost of repairing an EV could increase by as much as 30%. This sharp increase in repair expenses could potentially offset the financial advantages of owning an EV, particularly if it leads to higher insurance premiums or even denial of coverage for certain EV models by insurers. Currently, EVs are recognized for their higher upfront prices but lower long-term ownership costs compared to ICE vehicles. This economic equation has contributed to the growing popularity of EVs among environmentally conscious consumers. However, as EVs inch closer to price parity with ICE cars, the dynamics may shift. Future buyers could find themselves facing lower initial payments for EVs but with steeper maintenance and repair bills over the vehicle’s lifespan.
The recent case of Hertz, which invested in a fleet of Tesla Model 3s with hopes of saving on fuel and maintenance costs, serves as a cautionary tale. Despite the anticipated benefits, the rental giant was confronted with unexpectedly high insurance premiums and the looming spectre of costly repairs. Even minor damages, which would be relatively inexpensive to fix in a traditional ICE vehicle, can translate into lengthy repair processes and exorbitant expenses due to the intricate nature of EV drivetrains and charging systems.
