Internal combustion engine cars predicted to become “really bad assets” by 2026

The cost of making electric cars will reach parity with internal combustion cars by around 2025/26, marking a tipping point in the industry's transition to cleaner, greener vehicles, predicts the head of Envision Racing, the British Formula E motor racing team based at Silverstone Park.

Sylvain Filippi, managing director of Envision Racing, said it would soon become more expensive to manufacture traditional cars than their electric counterparts, given the cost of manufacturing internal combustion vehicles is increasing.

"In 2025/2026 ... you'll start to see parity on the supply side, in developed countries," Filippi said during an interview at the recent Reuters IMPACT climate conference, adding sticker price parity meant the total cost of ownership would be lower.

"That's the tipping point. When that happens and we can manufacture these cars at scale, then the floodgates will open," Filippi said.

"At that stage, buying an internal combustion car will be a very bad idea because the original value of these cars will be nothing. It will became a really bad asset and I think the transition will accelerate really rapidly."

Source: Reuters