As with any goods that pass the "tipping point" and become mainstream consumer products, manufacturing costs for automotive hybrid systems are bound to drop over the next few years. A report from JPMorgan Chase & Co that was released yesterday says that automakers may cut production costs for hybrid systems as much as 67% over the next decade as it is forecasted that the global market for hybrid vehicles will grow an amazing 16-fold to 9.6 million units over the same period representing a 10.2% stake of the overall market. -Continued
The report claims that today, the average cost of a hybrid system used in a gasoline engine that consists of an electric motor, batteries, a control unit and other electric components is estimated at $5,869. In 2018, the same system will cost just $1,919.
Via: Bloomberg