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JAKARTA - Currently, the development of electric vehicles is progressing rapidly. Many manufacturers are competing to launch the latest electric vehicles to support environmentally friendly movements in the future.

However, the transition from conventional cars to internal combustion engines to electric vehicles requires good adaptation for both consumers and manufacturers. In fact, these manufacturers often have difficulty selling electric cars to their customers.

In this case, large companies such as General Motors (GM), which is the parent of well-known brands such as Chevrolet, Cadillac, and GMC, reveal that electric vehicles (EVs) currently do not provide significant profits for them, even if the selling price ranges from 30,000 to 40,000 US dollars (around Rp445 million to Rp594 million) per unit.

GM stated that lowering the price of the EV model was not the right step considering the cost of battery raw materials is more expensive for car manufacturers. What's more, if the manufacturer wants to increase the vehicle's power reach.

"The battery cost is still not at a point where you can reach the mass market, which is this vehicle worth 30,000 to 40,000 US dollars, which is actually the majority of new car sales, especially the segment-C SUV crossover worldwide," said GM CEO Mary Barra, as reported by CarBuzz, on Monday, June 12.

Keep in mind that GM had previously marketed an electric hatchback, Chevrolet Bolt EV, for $ 27,000, but the production of this model was halted by the end of 2023.

By halting Bolt EV production, GM hopes to launch Chevrolet Equinox EV, an SUV that will be the company's mainstay in continuing the trend of electric vehicles, with production plans later this year.

Although GM faces challenges in entering the EV market, this can still be balanced with sales of SUVs and gasoline-fueled trucks. Models like Chevrolet Silverado and GMC Sierra help maintain GM's financial stability.

Interest in the EV model produced by GM is still low. In the period January to April 2023, GM only managed to send two units of GMC Hummer EV. However, GM remains optimistic that the cost of battery raw materials will decrease in 2025.


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