Electric cars are set to take the center stage at Frankfurt Motor Show 2019 (IAA 2019), which will take place from September 12-22. The event has already showcased the latest electric car models from Volkswagen, Porsche, Mercedes-Benz, and various of the industry’s other manufacturers.
Despite the irresistible trend of the electric cars, most auto firms believe that it will still take some time for them to become mainstream, as their prices are still too high for most consumers. Herbert Diess, the CEO of Volkswagen, has been urging the European government to provide tax incentives and financial support to electric cars to enhance their overall price competitiveness. In Norway, the overall market share for electric cars has already topped 50%, thanks to the government’s handsome financial support, which includes tax rebates and free parking.
In Europe, the electric cars industry is still in the nascent stage. In the first half of 2019, despite the existence of the region’s stringent emission regulations, the combined market shares of its electric cars and hybrid models is still only at around 2.4%. The regulations have originally been designed by the government to encourage the automakers in Europe to invest in electric cars to meet the emission criteria.
According to a report from McKinsey, the total production costs of the industry’s electric cars are currently US$12,000 higher than their fuel-oil counterparts. This is mainly due to the high costs of their batteries, which are typically US$5,500-7,000 per car, according to Herbert Diess.
Should there be no major technological breakthrough for the electric car industry’s key components and parts in the coming years, the industry’s automakers will have no choice but to rely on the expansion of their production scale to cut costs. The other key factors for the development of electric cars include cruising range and battery charging networks. (Collaborative media: TechNews, photo courtesy of IAA)