Why Are Internal Combustion Engines Still More Common and Cheaper Than Electric Motors in New Cars?

The auto industry has seen a significant shift towards electric vehicles (EVs) in recent years, yet internal combustion engines (ICEs) remain the dominant technology in new cars for several reasons. This article explores the factors contributing to the prevalence and affordability of ICEs, while also highlighting the challenges that EVs face in gaining wider market acceptance.

Historical and Technological Context

Internal combustion engines have a long and established history in the automotive industry. They have been the cornerstone of transportation for over a century, with early pioneers like Karl Benz and Gottlieb Daimler laying the groundwork in the late 1800s. Over time, ICEs have undergone numerous technological advancements, improving efficiency, reducing emissions, and enhancing performance. The established supply chains and the experience of manufacturers in producing these engines have made them highly optimized and cost-effective.

Manufacturing Costs and Supply Chain

The manufacturing costs of ICEs are significantly lower compared to that of electric motors. ICE components, such as pistons, cylinders, and carburetors, are widely produced and standardized. These components are also simpler in design, requiring less precision and more straightforward manufacturing processes. Additionally, many car manufacturers can leverage their existing infrastructure and tooling, meaning fewer new investments are required to produce ICEs on a massive scale.

In contrast, electric motors for automobiles are still developing. While they have advanced significantly, the components such as batteries, electric motors, and inverters are more sophisticated and expensive. The production of electric vehicles (EVs) often requires new factories, unique equipment, and specialized skilled labor. Moreover, the supply chain for electric vehicle components is still maturing and may be subject to volatility and inefficiencies that can affect production costs.

Market Size and Economies of Scale

The sheer market size of ICEs is one of the key reasons for their dominance. Car manufacturers have been producing ICE-based vehicles for generations, and this has led to significant economies of scale. As millions of ICEs are manufactured each year, the associated costs are spread across a vast number of units, making production costs relatively low per vehicle.

EVs, on the other hand, are a relatively new technology in the automotive market. Although the market share of EVs has been growing, it still represents a smaller portion of the total vehicle sales. This smaller market size can make it difficult for manufacturers to achieve the same economies of scale as ICEs, leading to higher per-unit production costs.

Trends and Future Projections

Despite the challenges, the trend towards electric vehicles is undeniable. Governments around the world are implementing policies to reduce carbon emissions and combat climate change, which often include incentives for EV adoption. As battery technology improves and economies of scale benefit the EV market, we can expect to see the costs of EVs increasingly align with those of ICEs. However, this process may take several years, if not decades, and will be influenced by various factors such as government policies, technological innovation, and consumer behavior.

Conclusion

Internal combustion engines remain more common and cheaper than electric motors in new cars due to their long-standing technological development, established manufacturing processes, and mature supply chains. While the automotive industry is rapidly evolving towards electric vehicles, significant challenges remain before EVs can fully replace ICEs. Nonetheless, the shift towards sustainable and efficient transportation technologies is a fundamental trend that will continue to shape the future of the automotive industry.