Almost every major automotive company, from the giants like the VW Group or Daimler to small manufacturers, are trying to catch with the growing popularity of electric vehicles. According to JATO’s study, which envelops various markets worldwide, in the first six months of the year, the average cost of an electric vehicle was almost 81% higher than of other cars.
That price range, besides the minimal charging infrastructure in some countries, illustrates why potential buyers walk away from EVs. However, most of the governments offer tax-reducing and similar benefits, but the lack of charging infrastructure is a serious issue as well that needs to be appropriately addressed.
Average Prices on the Largest Markets
Let’s take a look at the largest EV markets, shall we? In Europe, for instance, which is the second-largest electric vehicle market after China, the average price registered in 2019 is $34,100. The most affordable electric vehicle is Renault Zoe, with an average price of around $35,000. On the other hand, Tesla Model 3 has a price tag of $67, 450, while the Jaguar I-Pace goes over the $100K mark. Still, some of these prices exclude the benefits, which differ from country to country.
Furthermore, the situation in the United States and Canada is pretty similar as well. The average price of electric cars is slightly higher than in Europe, at $35,600. That can be explained by the popularity of mid-size pickups or trucks. These models accounted for an 18% market share with the mid-price of $43,650. The most affordable EV in North America is the Nissan Leaf, with a starting price of $32,500.
Prices in the USA and China
The most popular, and the best selling vehicle is Tesla’s Model 3, with a starting price of around $47,500. So, that’s almost 21% higher price than the starting price of some average SUV or pickup truck. However, China might be the EV paradise. According to the reports, the Chinese government stands behind the production of the EVs.
On top of that, the government is very supportive of electrification. As a result, local safety standards are more flexible than in Europe or in the US, which allows for lower production costs. So, the average cost of the EV in China is around $26,700. The cheapest model is BYD’s Yuan subcompact SUV, with a starting price of just $15,279. Also, you can get the Chery eQ1 city car for $20,300. But, the electric sedans are still more expensive than the rest of the vehicles, although they have a large, 42 % market share.
What The Future Holds for the Electric Vehicles?
So, do electric vehicles have a bright future? In China, no doubt that these types of cars will continue to record excellent sales. But, for the rest of the markets, it depends. As we mentioned, significant companies are working hard and spend a lot of money in this segment. One good example is the brand new VW ID 3, with an MSRP of $33,000, which is below the average price mark.
Furthermore, the costs of manufacturing and batteries will unavoidably fall. Thus the EVs must become more affordable. With that in mind, we can say that the EVs have a chance to storm the markets soon. It’s only a matter of time until the companies came with a production plan to make them equally priced, at least.