Carlos Tavares, executive director of the Stellantis group, affirms that in 2026 electric cars will be cheaper than thermal models. This will be possible thanks to the economies of scale resulting from a greater volume of production, which will allow the cost of this type of vehicle to be significantly reduced.
«In 2026, according to our forecasts, we will have an equality in the cost structure of the two technologies». Tavares gives the example of the Peugeot 208, whose electric version (e-208) is around 30,000 euros, while the equivalent thermal variants are slightly above 20,000 euros.
The head of Stellantis explains that this difference will be diluted as the volume of production increases. However, he warns that the “price of electric vehicles is very exposed to that of raw materials” and that “the price of raw materials is a very important part of the cost structure of batteries”.
For this reason, the cost of electric cars could also be more volatile than that of thermal ones, as it will be subject to strong fluctuations in the price of raw materials, something that is becoming noticeable in the current context (crisis in the supply of semiconductors, Russo-Ukrainian war, inflation, etc).
Luca de Meo (Renault) does not coincide with Carlos Tavares
Interestingly, Luca de Meo, CEO of the Renault Group, does not agree with his counterpart in this analysis. And is that the head of the French company does not believe that prices are going to equalize in the short term. “I don’t see that parity coming close,” he said during a recent interview at the Paris Motor Show.
Despite everything, both Renault (and its sports brand Alpine) and Stellantis will exclusively sell 100% electric models in the European market from the year 2030. The exception will be Dacia, Renault’s low-cost firm, which will continue to sell cars with internal combustion engines until the European Union’s ban comes into force in 2035.
Renault plans to present three affordable electric cars for the year 2024: the second-generation Dacia Spring and two remakes of the classic R5 and 4L. The first will cost less than 20,000 euros before aid, the second less than 25,000 euros, and the third less than 30,000 euros. Stellantis will do the same with the next Citroën ë-C3 and FIAT Panda, which will be in a range of 20,000-25,000 euros.