Volvo has said it is on course to achieve cost parity between electric vehicles and internal combustion engine vehicles by 2025, according to a report by Australia’s CarExpert.
The Swedish carmaker previously announced its commitment to becoming a fully electric car company by 2030 and has already stopped offering pure ICE powertrains in its line-up. In July 2021, Volvo offloaded its ICE development to Aurobay – a joint venture with Geely – allowing it to fully focus on electric powertrains.
This is said to give Volvo an advantage to hit its cost parity target compared to some brands that persist with ICE development. “I think it’s really important that you get cost parity between BEV (battery electric vehicle) and ICE,” said Volvo chief commercial officer and deputy CEO Bjorn Annwall.
“Our whole technical roadmap is geared to achieve exactly that, that by mid-decade, the cost for BEV should be same as ICE. And that’s the reason we need to work on optimising the full flow in a different way to get that out,” he added.
“That said, it’s probably easier to achieve for a premium car manufacturer than a mass manufacturer. That’s why it can happen much quicker for Volvo who’s also, as I said, we’re a relatively small brand, so of course, we can drive this quicker than a kind of cheap mass brand with different brand positioning. But I firmly believe we’ll get there,” Annwall explained.
One obstacle that Volvo will face on its journey to achieve cost parity is the cost of raw materials, particularly in the construction of battery packs. This is an issue that will affect other EV makers, including mass-market brands that still need to develop ICEs as well as electrification technologies to cater to various segments.
The post Volvo says EVs will achieve cost parity with ICE cars by 2025 as it no longer needs to develop engine tech appeared first on Paul Tan's Automotive News.
* This article was originally published here
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