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Automotive News

Electric Vehicles Are Not Driving Profit

In Automotive News , BCG’s Andrew Loh and Brian Collie explain why many automakers are failing to meet customer expectations for electric vehicles (EVs). Additionally, BCG research finds that original equipment manufacturers (OEMs) lose about $6,000 on each EV they sell for $50,000, after tax credits. Therefore, automakers may delay next-generation model launches if the vehicles remain unprofitable, and hybrid vehicles may become a more prevalent compromise for consumers hesitant to buy EVs. “For the next five years, [hybrids] deserve as much attention as EVs in terms of focus of investment for OEMs,” Loh says.