Fiat CEO predicts major drop in EV battery prices by 2027

In the UK, Olivier Francois, the CEO of Fiat and DS, has made bold predictions regarding electric vehicle (EV) battery prices during an interview with The Independent. He forecasts a significant reduction in battery costs by 2027, estimating that some batteries could drop in price by as much as €5,000 (£4,185). This anticipated change is crucial given the current barriers to EV ownership, primarily the high cost. According to Francois, this change is not only expected for Fiat but is a response to advancing technology across the automotive industry. The shift towards cheaper batteries is seen as pivotal in making electric cars more affordable and appealing to a broader market. At the launch of the new Fiat Grande Panda, which is set to become one of the UK's cheapest electric cars, priced at £20,975, Francois emphasized the importance of government incentives in boosting the adoption of EVs during the transition to lower battery prices. He noted that current gaps in government support could hinder the momentum needed to meet CO2 targets, especially as manufacturers are urged to sell more EVs without the backing of incentives. The Grande Panda, featuring a 44kWh battery and a 199-mile range, represents a step in making electric mobility more accessible. Looking ahead, Francois highlighted that while battery prices are projected to drop in steps rather than a gradual curve, there is optimism that these decreases will come sooner rather than later. He expressed a desire for these reductions to happen in sizable increments, which could set the stage for more budget-friendly electric vehicles. Furthermore, he indicated that Fiat is actively developing a new model to replace the existing smaller Panda, which is designed for both hybrid petrol and fully electric versions, expanding its lineup amidst the industry's changing landscape. The emphasis on affordability in the electric car sector will likely reshape consumer perceptions and buying decisions in the next few years, as financial barriers are reduced. Francois's insights underline the crucial role of battery technology advancements and the need for supportive policies as the automotive market continues to evolve towards sustainability and lower emissions.