In the United States, for the first time and for some models, the price of long-range electric cars is cheaper than the average petrol car. This is due to falling battery costs, increasing economies of scale and increasing competition.
The automotive sector is experiencing intense competition in the transition to electric vehicles, with an attractive outcome for American car buyers. In fact, for the first time several long-range electric cars are available at a lower price than the average petrol car. This represents a significant step toward more widespread adoption of electric cars in the United States and opens up new opportunities for consumers and the environment.
Price of electric cars falling, range increasing
According to an analysis by Bloomberg Green at least three car manufacturers- Tesla, Hyundai-Kia and General Motors– offer now electric cars with autonomy exceeding 480 kilometres. At a price significantly lower than the average for new cars sold in the United States. Among these, the Hyundai Ioniq 6 of 2024 stands out as the most convenient, with a range of 580 kilometers and a price 25% lower than the national averagewhich stands at approximately $47,000.
This drop in prices is due to several factors, including:
- Reduction in battery costs – Batteries are one of the most expensive components of electric cars, but their price has dropped significantly in recent years, making electric cars more accessible;
- Greater economies of scale – As the production of electric cars increases, automakers are able to benefit from greater economies of scale, which help reduce costs;
- Increasing competition – The entry of new players into the electric car market has intensified competition, pushing existing automakers to reduce prices to remain competitive.
The increase in autonomy is another important factor that makes electric cars more attractive to consumers. Today’s electric cars can travel longer distances on a single charge than models from just a few years ago, reducing the range anxiety that was a barrier to electric car purchases for many users.
Affordability as a key factor
Making electric cars affordable is key to accelerating their widespread adoption. Consumers are increasingly attentive to range, charging speed and the availability of charging stations, and are willing to pay for electric cars that offer these advantages. However, it is important that the price of electric cars remains within reasonable limits to progressively attract a wider audience.
Leasing makes electric cars even more affordable
In addition to lower purchase prices, leasing they are making electric cars even more affordable for many consumers. Since dealers receive the federal tax credit for electric cars, some they apply it directly to your monthly lease payment. This can make leasing a long-range electric car significantly cheaper than leasing a similar petrol model.
For example, leasing a Hyundai Kona Electric or one Tesla Model 3 can be up to 37% cheaper than comparable petrol models such as Toyota or BMW.
Towards price parity between electric and thermal cars by 2030
While prices of electric cars are still on average around 15% higher than those of traditional petrol cars, the gap is rapidly closing. According to the IEA (International Energy Agency), the average price parity between electric cars and petrol, without considering the savings on fuel and government incentives– which also happens in Italy they were snapped up– should be achieved by 2030. An important turning point for a definitive electrical transition.
Article Modified On:June 10, 2024
