Hybrid System Costs to Drop More than 65% Over the Next Decade

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