A “major breakthrough” in battery technology is a must to boost the demand for all-electric and hybrid electric vehicles, according to a study recently released by the Boston Consulting Group (BCG). Without it, the high-tech vehicles will never have a mass market appeal. The study indicated that if they higher prices had a quicker return – around three years instead of as many as 10 – the public would be more willing to make the higher investment up front.

Battery Breakthrough Needed to Boost Mass Market Hybrid Appeal

A new study by The Boston Consulting Group (BCG) concludes that a major breakthrough in battery technology is necessary in order to foster “mass market” demand for all-electric and hybrid electric vehicles within the next decade. Without such a breakthrough, the firm determined, all-electric and hybrid vehicles will remain too expensive – both in terms production costs and sticker price – to penetrate the market in large numbers.

“For years, people have been saying that one of the keys to reducing our dependency on fossil fuels is the electrification of the vehicle fleet,” said Xavier Mosquet, leader of BCG’s global automotive practice and a co-author of the study. “The reality is electric-car batteries are both too expensive and too technologically limited for this to happen in the foreseeable future.”

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