Due to the high cost of traction batteries.
Gartner analysts do not lose sight of the trends associated with the development of the electric vehicle market and predict that already in 2027, the cost of mass-produced electric models will drop below comparable characteristics of cars with internal combustion engines, but the high cost of traction batteries will pose a certain danger for buyers. In particular, in case of serious accidents, battery restoration will cost so much money that insurers will prefer to write off damaged electric vehicles as scrap rather than restore them. The average cost of repairing an electric vehicle after a serious accident will be 30% higher than that of a car with an internal combustion engine, if we talk about the period after 2027 inclusive.
Image source: Tesla
This will lead to the fact that the cost of insurance policies for buyers of electric vehicles will increase, and insurance companies will not insure some models of electric cars at all, since this threatens them with serious losses.
Gartner experts also believe that by 2027, up to 15% of electric vehicle manufacturers that entered the market no earlier than the last decade will go bankrupt. They will either leave the market altogether or be absorbed by larger players. This year, 18.4 million electric vehicles will be delivered to the market, as Gartner predicts, but next year, supply volumes will only grow to 20.6 million units, as the market is already entering the phase when manufacturers will have to actively compete for every buyer.