Electric Cars Are Still TWICE As Expensive As Regular Ones
Electric cars remain nearly twice as expensive as petrol or diesel models. That’s according to a new study which investigated prices throughout Europe…
Twice As Expensive
The average price of an electric car is a staggering 81% more than a conventional one. That’s according to a new study that examined prices throughout Europe, Turkey and Israel. The collective EV segment in these regions makes up about 1.9% of the new car market. On average, the price of new petrol or diesel car costs £27,129. Conversely, the range of prices for the most popular electric cars range anywhere from £28,000 to an inaccessible £82,000. Perhaps depressingly, even humble and ‘affordable’ models like the Renault Zoe are more expensive than the average retail price in 15 European markets.
A similar trend is found in the American market, where SUVs dominate. These larger and bulkier vehicles produce a more expensive average than that found in Europe, standing at £28,340. Even there, however, the price of EVs trumps everything else. The most popular EV there, the Tesla Model 3, is 21% more expensive than the average. Only China stands out from the crowd when it comes to the cost of electric cars. This is largely because of intensive state subsidies and fewer safety regulations. As a result, they’re 43% lower than the market average.
One Of Four Challenges
JATO, which compiled the information, believes pricing is one of ‘four challenges’ standing in the way of EV adoption. The others being limited range, insufficient charging infrastructure and a limited supply of cars. Felipe Munoz, JATO analyst, believes the price gap will narrow over time. He said, “the gap is set to reduce in the long term. Prices of BEVs (battery electric vehicles) are expected to fall as battery costs decrease and the OEMs share their technologies”. He added, “yet, based on the latest product announcements and presentations, this is not the case in the short term. It will be very difficult for OEMs to reduce prices and, most importantly, to expand profits without an increase in sales volumes”. In particular, Munoz cited the likes of the ID.3, Peugeot e-208 and Vauxhall Corsa-e as turning points within the electric car sector.
It’s also worth pointing out that, of the limited range of EVs currently available, many are aimed at the premium or luxury segments. As a result, they naturally carry larger and more substantial price-tags; this can, and it seems has, distorted average pricing. Automakers still regard EVs as risky business, even if they are inevitable, and often find it easier to make upmarket offerings profitable. So, whilst your next model probably won’t be electric, it’s not at all far-fetched to suggest that the one after will be.
Another Opinion. Volkswagen: Electric Cars Are ‘Nearly’ As Cheap As Petrols – https://autoserve.co.uk/motoring-news/volkswagen-electric-cars-cheap-petrols/
The Best Electric Cars On The Market – https://www.autoserveclub.co.uk/blog/the-best-electric-cars-on-the-market/