Next-gen EVs will be cheaper to produce than gas cars by 2027
In three short years, battery electric vehicles will be cheaper to produce than ICE vehicles of the same size due to improved manufacturing methods – at least that’s the latest prediction from market research firm Gartner. Of course, those gains may be lost to the rising price of EV repairs.
Gartner predicts, too, that by 2027 15% of EV companies founded since the last decade will be acquired or bankrupt. “This does not mean the EV sector is crumbling,” said Pedro Pacheco, vice president of research at Gartner. “It is simply entering a new phase where companies with the best products and services will win over the remaining.” Of course, at least 18 EV and battery startups that went public in recent years and attracted huge investments are now struggling for cash, with plenty going belly up, including Lordstown Motors and Proterra.
Still, new innovations will push BEV price down, Gartner states. “New OEM incumbents want to heavily redefine the status quo in automotive,” he added. “They brought new innovations that simplify production costs such as centralized vehicle architecture or the introduction of gigacastings that help reduce manufacturing cost and assembly time, which legacy automakers had no choice to adopt to survive.”
By 2027, next-gen BEVs will be cheaper to make than comparable ICE vehicles, with production costs dropping faster than battery costs. But there’s a rub: Repair costs will be more expensive, Gartner says. By 2027, it predicts that the average cost of an EV body and battery “serious accident repair” will increase by 30%.
That means that crashed or damaged cars are more likely to be a total write-off since the repair costs will outweigh residual value, Gartner said. Plus, more expensive crash repairs may lead to pricier insurance premiums or even the refusal of insurance companies to cover particular car models. All this, of course, could incite consumer backlash if reductions in production costs come at the expense of higher repair costs, Gartner warns.
Still, things are looking up for the EV world, Gartner says, with market penetration predicted to grow this year despite all the doom and gloom we’re reading these days. EV shipments are estimated to reach 184. million units this year, and 20.6 million units in 2025. But the mood is changing, less “gold rush” and more “survival of the fittest,” Gartner says.
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LiveWire, the electric motorcycle brand spun out of Harley-Davidson, has just announced its latest electric motorcycle model. The new LiveWire S2 Alpanista is built on the same platform as the brand’s last two models, leveraging the Arrow platform as a versatile foundation for several diverse bikes.
The Arrow platform first received its debut with the LiveWire S2 Del Mar, which was then followed by the S2 Mulholland.
LiveWire announced that a high-performance electric maxi-scooter would be produced on the Arrow platform, but not before the company rolled out the S2 Alpinista. “The Alpinista is LiveWire’s first sport standard,” explained the company, “equipped with 17” wheels and tires, blending the best of street, sport, and hyper-tourer characteristics.”
The recently unveiled S2 Alpinista is mechanically quite similar to the two previous models sharing the platform. The 10.5 kWh battery that serves as the main structure of the bike will offer a maximum range of 120 miles (193 km) per charge under city riding conditions. It can be recharged with a Level 2 charger from 20-80% in just 1 hour and 20 minutes.
The 433 lb (196 kg) bike can achieve a 0-60 mph (0-96 km/h) time of just 3.0 seconds, thanks to its powerful 63 kW (84 hp) motor. The S2 Alpinista can also reach an electronically limited top speed of 99 mph (159 km/h).
Priced at US $15,999 and already available at LiveWire dealerships in North America and Europe, the S2 Alpinista officially becomes the most affordable LiveWire electric motorcycle available to date, undercutting the $16,249 S2 Del Mar electric street tracker and the $16,499 Mulholland electric sport cruiser.
“Alpinista reimagines the S2 by combining the urban agility of a supermoto with the do-it-all nature of a touring bike, creating a practical and thrilling sport standard,” explained the brand.
The smaller 17″ wheels help reduce the seat height of the bike, and combined with the Dunlop Roadsmart IV tires, the street-optimized bike is ideal for “both daily commutes and spirited rides through winding roads.”
The S2 Alpinista comes with 6-axis IMU from Bosch providing cornering-enhanced antilock braking and cornering-enhanced traction control systems, in addition to four preset ride modes and two custom modes.
Now the third model launched on the Arrow platform, the S2 Alpanista underscores the versatility of LiveWire’s workhorse. The approach was intended to allow the e-motorcycle offshoot to quickly innovate with multiple styles of motorcycles all sharing key structural and drivetrain components. The move has largely been seen as an engineering success, with three models hitting the road in under three years. However, sales have yet to reach targets set by LiveWire as the more premium electric motorcycle industry has experienced a rocky few years.
As a LiveWire S2 Del Mar owner myself, I can attest to both the performance and enjoyable experience of bikes built on the platform, though I do find myself in a somewhat smaller community than LiveWire had likely hoped for. With the backing of its powerful older brother H-D, which retains a controlling stake in the company, LiveWire has enjoyed the relative freedom to cruise for its first few years and focus on motorcycle development and rollouts, with profitability hopefully coming over the horizon in due time.
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