Leapmotor founder and CEO Zhu Jiangming answers questions from journalists on April 1 in Beijing. [Photo provided to chinadaily.com.cn]
Electric vehicles are expected to see their prices slashed by at least two thirds in a decade, said Zhu Jiangming, founder and CEO of Leapmotor, on Saturday.
At the China EV 100 Forum, Zhu said the prices of its model C11, a mid-sized electric SUV priced starting from 155,800 yuan ($22,606), to fall sharply to around 50,000 yuan in 10 years.
Over 60 percent of a smart EV’s cost comes from electronic components, including batteries and smart cabin features, and the prices of such products usually fall quickly because of the Moore’s law, said Zhu.
The law, proposed in 1965 by former Intel executive Gordon Moore, is the observation that the number of transistors in an integrated circuit doubles about every two years.
“A 55-inch color TV from TCL was sold at 7,000 yuan in 2013. Now, if you check at Taobao, it is at 1,300 yuan, with even more features,” said Zhu.
“This applies to EVs as well. They will have a new generation every two years, and their prices will fall below 50,000 yuan in 10 years,” he said.
Last year, Leapmotor sold 111,000 vehicles, up 154 percent year-on-year, as one of the best-selling EV makers in China. It expects sales to grow to 200,000 units this year.