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Market research firm predicts major price changes to EV industry in coming years: 'Entering a new phase'

"Companies with the best products and services will win over the remaining."

"Companies with the best products and services will win over the remaining."

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According to a new report, the cost of making electric vehicles will be less than producing comparable gas-powered cars by 2027. 

The Hill reported that the market research and consulting firm Gartner predicts that the production of battery electric vehicles will decrease because of innovations that reduce manufacturing costs and time, such as gigacasting (casting of large-scale aluminum parts to gain efficiencies), in addition to "centralized vehicle architecture." 

Reduced manufacturing costs could lead to reduced sticker prices on electric cars, incentivizing more people to switch to electric. The more people who switch, the healthier communities could become. 

While it's known that EVs are cleaner than gas-powered cars, a study in California is one of the first that proves it. A UC Berkeley professor set up sensors in the San Francisco area to measure polluting gases. The sensors found a 1.8% reduction per year between 2018 and 2022. It's believed that this is because of the popularity of electric vehicles in California.

Children are more vulnerable to polluting gases because their lungs are still growing. So lowering the amount could protect children. Another study shows that switching to EVs by 2035 would mean 2.8 million fewer asthma attacks among children, as E&E News reported. 

Unfortunately, while there may be benefits to children's health and savings in the wallet up front, Gartner's study also found that the cost to repair EVs would go up about 30%, per The Hill. In certain situations, it may then become more cost-effective to write off vehicles than to fix them. 

A study by KLAS mentioned by The Hill found that the technology and computers used to make EVs can cause high repair costs if a vehicle is damaged.

In addition, according to Gartner's study, the firm expects that "15% of EV companies formed since the last decade" will go bankrupt or be acquired by another company. 

Despite the market challenges, Pedro Pacheco, Gartner's vice president of research, believes that "this does not mean the EV sector is crumbling. It is simply entering a new phase where companies with the best products and services will win over the remaining."

While the EV industry could be shaken up, switching to an EV doesn't just make communities healthier by reducing polluting gases; it can also save consumers $800 to $1,000 annually by powering vehicles with electricity instead of gas. So, the benefits still frequently outweigh the possible side effects. 

Also, while the EV industry may thin out, customers may still get better quality cars and services for their money.

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