The production of electric cars will soon become cheaper, Toyota believes. It bought a battery manufacturer

Already in 2027, the production of electric cars should be cheaper than the production of conventional cars with a combustion engine.

In the next three years, the cost of producing electric cars is to be reduced so much that they will be lower than a car with an internal combustion engine. At least that’s what Toyota claims in a press release, citing analyst firm Gartner. She thinks that the production costs of electric cars will fall below the level of production costs of internal combustion cars earlier than expected – around 2027.

But it’s not just about the batteries. “New methods of body assembly will also play an important role, which will consist of fewer parts than before, which will not only speed up the whole process, but also reduce the cost of building a body by at least 20 percent.” continues the car company.

According to Gartner, however, another problem is to arise – expensive repairs. These could increase by up to 30%, which will mean more frequent write-offs of crashed cars as a total loss, more expensive insurance premiums and perhaps even the reluctance of insurance companies to insure electric cars in an accident.

Toyota recently incorporated battery maker Primearth EV Energy into its business. Until now, she was its co-owner together with Panasonic. This is to speed up the mass production of different types of batteries for electric cars.