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Old 27th March 2024, 11:44   #1
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EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

According to a media report, EV production will reach cost parity with ICE-powered cars in as little as 3 years, however, the average cost of repair is going up at an alarming rate.

Reports claim that EVs could become cheaper to make than their ICE-powered counterparts by 2027. However, the average cost of repair is said to be increasing and could go up by 30% within the same time frame. The increasing repair costs could further cause a hike in insurance premiums, which could lead to some insurers flat-out denying coverage for certain EV models.

EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high-evmanufacturing.jpg

Reports state that in the current situation, EVs are known to have greater up-front prices and lower ownership costs - making a case for EV purchasing. However, once EVs reach price parity with ICE cars, the formula could invert - resulting in cheaper upfront payments for EVs but more expensive in the long run.

The report also takes Hertz, as an example of how it bought a fleet of Tesla Model 3s expecting to save money on fuel and maintenance, only to be hit with high insurance premiums and the possibility of its EV fleet being written off due to expensive repairs. It also stated how trivial damage that would be simple & cheap to fix in an ICE car could lead to long wait times due to the complexity of the EV drivetrains and its charging systems.

Source: Jalopnik

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Old 27th March 2024, 19:01   #2
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

The report conveniently ignores why and how the price parity will be achieved - by maturing supply chains and economies of scale kicking in for a larger number of manufacturers.

Which means, the spares availability and repairability of vehicles will improve too as supply chains improve and manpower skillet improves too.

The amount of fearmongering is unreal for EVs.
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Old 27th March 2024, 21:12   #3
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

There is some truth to this in my humble opinion.
The only EV I have is the Ola S1. But one thing is, because of the complex electronics, I always tend to take the vehicle to Ola for any repairs. In my case I had an issue with the Gps not working well.

Anyway, the point is, because of complex parts, it's likely that the support will be only be possible by the company making the product. Unlike Ice with OBD port + a whole generation of mechanics knowing what codes mean what problem and how to solve, EVs may be a different ballgame. That bring up the question of whether there is an OBD equivalent for EVs and how reliable and granular do those errors mean?

The government, specifically the CCI (Competition commission of India) should look into this (if they already have not) and see how to make service/parts available to 3rd party mechanics to have a much more wider and cheaper service ecosystem.

Anyone knows if CCI is already looking into this?

Last edited by deep_bang : 27th March 2024 at 21:13.
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Old 27th March 2024, 21:21   #4
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

Quote:
Originally Posted by alok9345 View Post
The amount of fearmongering is unreal for EVs.
If it is just fear, all is still well - in the hope that truth, however things are being construed now with whatever the reasonings maybe, with time and experience will eventually prevail on the shoulders of sound logic and reasoning.

Unfortunately, current times are far more complex, with covert entities consistently churning out vicious, paid, anti-EV propaganda - some blatant and shameless but others subtle and hence more malicious - that I fear it is difficult indeed for a regular person like you and me to effectively sift through the propaganda and assess for oneself what in fact is the truth.

A quick disclaimer - I haven't done enough research to fact check the claims in the above article, so I'll reserve judgement. But a quick glance into the article and also other articles on the homepage of this website such as the one titled "Ford Explorer EV Finally Goes On Sale, Promises Lower Chance Of Fiery Death" (couldn't it rather be titled "Ford Explorer EV Finally Goes on Sale, Promises Safer Car"?) makes me, if nothing, skeptical.

Need of the hour: Finding mechanisms to sift through anti-EV propaganda.

But the scope of my point is more general and more important - that it is perhaps the need of the hour to be able to find better ways of sifting through the propaganda. And threads of their own to that effect (with suggestions figuring out an effective mechanism) would be terrific. If nothing, a general discussion on whether one agrees or disagrees with the prevalence of anti-EV propaganda and if doing something about it is even merited could be a lovely start. For if there's one forum in India that could possibly not just contribute positively but also make a meaningful difference, Team-bhp would be right on time of my list.

If I have the time and the clarity of thought on what I wish to say, I would like to start a more effective thread to this effect than just this post; maybe even do some sort of collabs (anyone who has suggestions or just shares my views can PM me - we'll see where it may take us). But for now it is my hope, that someone else who might be better able, more inclined to the cause, or just have more time and willing to, will do something along those lines before I am able to.

It is just as important to note that not everything that's being said negative about EVs is wrong - for that defeats the entire premise of objectivity. And for me, that is equally as defeating to the cause. Let's just say that it very much excites and comforts me just the same when a spade is being called a spade!

It's just that I've recently come across too many (what I felt to be) propaganda articles in the anti-EV space that I felt compelled to say my piece - for whatever it's worth.

Last edited by SmartCat : 28th March 2024 at 00:35. Reason: as requested
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Old 29th March 2024, 11:11   #5
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

The article is contrary to the fact that EVs have fewer moving parts; hence, lesser maintenance. From a BHPian's point of view, when he/she considers buying an EV, if there's one thing on top of the list, it would be the unmatched driving experience an EV offers. While many of us are still waiting for the right product, acceptable range at an acceptable cost, or for the battery technology to mature, when we eventually upshift from our ICE-powered car to an EV, we will wade our way through all the negative aspects/anti-EV propaganda for that 'sheer driving pleasure'.

Last edited by denny_ace : 29th March 2024 at 11:13. Reason: Typo
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Old 29th March 2024, 11:50   #6
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

Quote:
However, once EVs reach price parity with ICE cars, the formula could invert - resulting in cheaper upfront payments for EVs but more expensive in the long run.
Are we saying an EV will prove to be more expensive (in running costs) in the long run compared to petrol cars, just because the repair costs are high presently?

Well, its absolutely true, at least where the trend is going. Let me highlight my reasons:-

1. An EV technology is like an iceberg. Far below than what meets the eye. Deep, complicated, electronic, very technical. An EV mechanic needs to be almost a B Tech (Electrical Engineering) to do a good job, for a decent product.
There's no hands-on/ DIY here.
DC electronics are by far the most dangerous. An electric shock means you won't even get a chance to recover, its death for sure.

2. The way most of these EVs are designed, a minor crash means a huge loss. Most of the structural reassembly is not something that happens on a service/ workshop level. You get parts and you install it.
And the battery is expensive, and its still not so reliable that a company can give 10 years warranty on it. Plus, making a durable car chassis whose battery doesn't explode in case of accident is a challenge too, making assembly/ disassembly even tougher.

3. Huge Repair/accidental Costs means huge costs in terms of.. Yes! you guessed it right even before I said it. Huge insurance premiums. I've read an article and it seems, this will happen.
You will pay even if you don't crash, because insurance means you're paying for other guy's crash.


However, the picture is not so grim for EV's. Battery technology is still developing, and may bring huge relief in terms of charging speeds, battery (new & replacement) costs, battery life, range, etc.
I'm hopeful, even though I'm a petrohead at heart.

Last edited by Samarth 619 : 29th March 2024 at 11:53.
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Old 3rd April 2024, 12:29   #7
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

Quote:
Originally Posted by RahulNagaraj View Post
According to a media report, EV production will reach cost parity with ICE-powered cars in as little as 3 years, however, the average cost of repair is going up at an alarming rate.
Like all technologies, EVs will inevitably become cheaper as R&D and an increase in production decreases the fixed cost per unit. However, the real question is whether the charging network will expand enough to make EVs a viable option as the primary car of a family since right now EVs are mostly confined inside major cities.

Also, I wonder if the hydrogen car industry will be able to rival the EV industry anytime in the foreseeable future.
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Old 3rd April 2024, 13:08   #8
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Re: EVs will be cheaper to make than ICE cars by 2027, but repair costs will remain high

One way to look this is to compare how the laptop has developed versus the desktop.

A desktop is more or less an open system with a lot of scope for the user to change parts even from non-oems. When laptops came, things were more manufacturer dependent. The parts, although standardised, had many of them that were specific to that model/manufacturer. However, two things happened:
1. Look at companies like Dell, hp etc, who have improved their service and even parts are.reasonably priced.
2. There is a whole FNG market for laptop repairs especially when OEM repairs become too expensive.

As the FNG markets have understood the individual components better they have also been able to cater to the demand for a cheaper service where devices are too old and does not make sense to put too much money on.

This model is unique to India as India is a volume market. So let's not use other countries' data/behaviours to project what may happen here. India is too different and we need to have models that are.India specific to project into the future.
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