Many people would like to switch from ICE cars to EVs because they recognize the benefits of zero-emission mobility. However, some potential buyers have been held back by the high cost of EV’s. Electric vehicles generally cost more than gas-powered cars, and while EVs will end up saving you money in the long run, the initial expenditure is enough to cause people to reconsider going electric.
However, like most products, it is possible for electric vehicle prices to come down?
How much does an electric car cost?
There is no definite answer to this question because electric cars come at different price points. However, we can compare the averages of ICE cars and EVs prices.
Cars generally have been getting more expensive. In the US, the average price of gas-powered cars sold from January to September last year was $35,970, while for battery-electric vehicles was $51,691, a 44% difference.
Will electric car prices come down?
EV prices may be high, but that doesn’t mean they will always remain so. In fact, many industry experts believe that ICE cars and EVs will achieve price parity within this decade.
EV prices have been dropping in some parts of the world, demonstrating that EVs can genuinely be accessible to the masses. In China, for example, a BEV that cost $10,000 in 2011 will now cost only $5200, a 42% reduction that will undoubtedly bring in more buyers.
Similarly, in Norway, petrol/diesel cars already cost more than EVs on average, with $2,257 separating them on average. This might explain why EVs are so popular in the Nordic countries.
Although the rest of Europe and the US is not experiencing this downturn in EV prices yet, it is highly likely these regions too will witness the same thing albeit with a 5-10 year lag.
A combination of factors will help bring down the cost of electric cars globally. These include lower battery costs, which is happening, a shift in focus from long-range premium EVs to shorter range city cars that do not need to cover long distances. Furthermore, these shorter range EV’s don’t require the latest and greatest features, meaning that mass production will be less of a hurdle resulting in an increased demand for EVs.
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