Ever-more stringent global emissions standards are driving up the cost of ICEs, narrowing the gap between them and electric drivetrains, according to a VW exec.

“Emissions standards are getting tougher and tougher, and it is getting more and more expensive to meet those standards,” Dr. Matthias Erb, a Volkswagen Group of America Executive VP, told Green Car Congress. “As a result, we see a cost line crossing between battery-electric vehicles and diesels. Some of the strategists in our company see that by 2023, 2025, due to the emissions standards, diesels are going to become really expensive. We expect that when those two lines cross, this will be the time when huge pressure comes on diesel.”

Volkswagen’s recently announced TRANSFORM 2025+ strategic program calls for massive investments in e-mobility and connectivity. EVs based on the new Modular Electric Drive Kit (MEB) platform will be produced in North America beginning in 2021. The company has set a goal of selling one million EVs per year by 2025.

“From 2020, we will be launching our major e-mobility offensive,” said Chairman of the Board Dr. Herbert Diess. “As a volume manufacturer, we intend to play a key role in the breakthrough of the electric car. We are not aiming for niche products but for the heart of the automobile market.”

Source: Volkswagen via Green Car Congress