Are carmakers spending too much on EVs and self-driving cars?

Carmakers are spending too much in the race to bring more electric vehicles and automomous-drive technology to market, according to the boss of global parts supplier Magna International.

In a speech at the Automotive News World Congress in Detroit, Magna chief executive Don Walker warned that the increasing investment in such technology will raise prices for consumers.

‘‘We have to reduce the amount of money everybody’s pouring in, because the end consumer basically wants cheap transportation.

‘‘Ultimately, we need to be more efficient with the capital we deploy in the industry.’’

Last year, the industry estimated $90 billion would be spent on supplies to bring EVs to market over the next 10 years. The current estimate is more like $300b.

The answer, says Walker, is for carmakers to cut back on investment and forge more partnerships with other companies.

Non-car companies are also investing heavily in batteries and charging stations.

But there won’t be an immediate return, said Walker.

The path to electric and autonomous vehicle adoption is being shaped by hard-to-predict factors, such as evolving battery chemistry, vehicle cost and performance, infrastructure and government regulation, he said.

Magna, the world’s thirdbiggest parts supplier, estimates that EVs will still only make up 4-6 per cent of the market by 2025.

In 2030, just 7 per cent of the market will be fully autonomous vehicles without steering wheels or pedals.

‘‘This is a very expensive endeavour. . . I think we need to have more co-operation.’’