EVs will be cheaper than ICE cars by 2027, but cost more to repair

The average cost of repair of EVs is said to be increasing and could go up by 30% by 2027.

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.

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