Asian Tech Press (Dec 03) -- Carlos Tavares, CEO of Stellantis, the fourth largest car manufacturer globally, said that the cost of transitioning to electric vehicles exceeds the limit of what the current automotive industry can afford.

Carlos Tavares believes that electrification of the automotive industry will result in a 50% increase in the cost per vehicle compared to traditional fuel vehicles. Still, automakers could not pass the cost on to the end consumer.

Faced with the high cost of transitioning to electric vehicles, traditional auto-fuel car manufacturers either raise prices to reduce production or accept lower profit margins to cope with the increased costs.