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Renault CEO predicts electric car prices could rise by up to 40% by 2030 due to rising material and technology costs.
The electric car market is undergoing a transformation, but there are many challenges. While sales continue growing, a forecast made by Luca de Meo, CEO of Renault, revealed a worrying warning: production costs for these vehicles could rise by up to 40% by the end of the decade.
Electrical transition
The transition to electric cars is progressing, but not without its difficulties. Recent studies indicate that by 2025, sales of these vehicles could reach 30% of the global market.
Even in countries where adoption of electric vehicles is low, such as Brazil, the number of registrations has been growing.
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However, Luca de Meo points out that prices are already too high for most people. “The key to the success of electric cars lies in the purchasing power of the middle class. If the middle class is not doing well, the automobile industry will not be doing well either.”, He stated.
According to him, the loss of purchasing power of the middle class is one of the main threats to the future of this segment.
The role of European standards
One solution to increase accessibility would be to reduce production costs. In an interview with the Belgian business newspaper From Tijd, he criticized the increasingly demanding regulations imposed on car manufacturers in the European Union.
"The new regulations require substantial investment and generate additional costs. Currently, eight to twelve regulations are approved each year. This will result in a 40% increase in vehicle production costs by 2030.”, He explained.
Furthermore, Luca revealed that around 25% of Renault's research and development budget is being allocated exclusively to adapting cars to new environmental and safety legislation.
recharge infrastructure
Another critical point is the infrastructure for recharging electric vehicles, which is considered insufficient. According to Meo, the development of this network needs to accelerate significantly: “Charging infrastructure needs to grow 6 to 7 times faster than the current pace”.
He argued that this expansion will only be viable with the support of governments and financial institutions. For him, charging stations can be highly profitable from the moment they start operating.
The future of the electric car
Despite the challenges, the trend towards electrification of the automotive market seems irreversible. But the forecast of higher prices could slow down the growth expected for the coming years, especially if there are no advances that balance costs and accessibility.
The automotive industry, governments and institutions will play a crucial role in enabling this transition and ensuring that electric cars become a reality for everyone.
But what the hell kind of CEO is this? Prices are falling more and more. These traditional automakers are desperate. Now they are lobbying YouTube influencers. The desperation is huge.