Price of EVs may be similar to vehicles with combustion engines: Volvo CEO

As electric vehicles are taking over the auto industry, Volvo CEO Jim Rowan believes the prices of EVs will come down to the same level as vehicles with combustion engines by 2025. The current scenario post the Covid-19 pandemic has led to a semiconductor shortage and supply chain blockages accompanied by rising prices of fuel. This has led to a boost in demand for EVs, however, the prices are still high.

According to reports, Rowan added that auto companies should not depend on government subsidies and need to plan out their EV production in such a manner that consumers can afford them. The Volvo CEO reportedly said, “We think we get [to price parity] . around 2025, where there'll be enough technology that's driving down cost on the battery. Technology will drive range up. Less batteries, but more range, at less cost — we'll get there."

The most expensive part of an EV is the battery and with Rowan's suggestion that the advancement of technology will lead to less usage of batteries without impacting the range seems a distant idea for now. The CEO also mentioned the need of having smaller electric vehicles with reduced prices. He referred to a city-styled EV that Volvo aims to bring in next year.

(Also | In pics: Volvo EX90 electric SUV breaks cover with 600 km of driving range )

Volvo recently unveiled the EX90 electric vehicle which promises to offer the longest range. Volvo claims it to be the most powerful and safest car out there. This new car is an electric makeover of the flagship XC90 SUV. The luxury automaker will start the production of the EX90 EV next year and will launch it later in the year.

The Volvo EX90 comes with a 111kWh lithium-ion battery pack that promises to offer a range of over 600 km on a single range. The automaker has manufactured this battery using renewable energy and it also supports fast charging up to 250 kW.