ROME – Buy a new fully electric car for 3,700 euros? In China it is possible, while in Europe the minimum cost is at least € 15,740, more than four times that of China, and in the United States it rises to € 24,800, even six times more. Yet in the country of the Dragon in 2011, buying an electric car cost an average of 41,800 euros. Today, however, after ten years of incentives and targeted policies, the average price has dropped by 47% to € 22,100 and, if you look only at city cars, which in China account for 40% of electric vehicles sold, it drops to 6,700 euros. Even if you can buy a brand new zero-emission car for as little as 3,700 euros. By contrast, in Europe and the United States, despite government support, the average price of electric cars has risen by 28% and 38% respectively over the past decade.
Why this gap? According to the latest study from Jato Dynamics EVs: A pricing challenge, which analyzes the evolution of the electric vehicle market in the world‘s three major markets, China’s progress can be largely attributed to its focus on developing more popular electric cars, prompting manufacturers to adapt internal combustion models to cheaper electric vehicles. This policy has strengthened the electricity market to such an extent that the Chinese government can now afford to phase out incentives. Which, on the other hand, is not possible in either Europe or the United States, where the automotive industry has mainly focused on technological development and higher ranges.
For this reason – specifies Jato Dynamics -, despite the efforts made, today electric vehicles in Europe cost on average 32% more than petrol and diesel models and 45% more in the United States. While in China the average price of electric vehicles is 6.8% lower than that of thermal models. However, there are many differences in Europe between the five main electricity markets. In Germany, for example, electric vehicles registered from January to May 2021 cost on average only 8% more than the equivalent petrol and diesel models, even if – the study specifies – ” the only driver of reduction are were the electric SUVs, with average prices down from a maximum of 118,300 euros in 2017 to 49,700 euros this year ”. The study finds that the largest price gap was found in the Netherlands, with a difference between electric and thermal vehicles of 54%. Followed by the United Kingdom, with a gap of 52%, and France, with a difference of 45%. Norway, where the share of electric cars sold is over 50%, is the only European country where the average price of an electric vehicle is lower than that of petrol and diesel cars: 44,500 euros against 53,000 euros, with a difference of -15%. In Italy, on the other hand, the price gap between electric cars and petrol and diesel cars recorded from January to May is + 42%.
In short, to overcome the ‘gap’ with China and not fall behind according to Jato Dynamics, there is ” an urgent need for the industry to focus on affordable electric models, translating the demand for petrol and diesel models into their range of electric vehicles and find solutions to reduce production costs as soon as possible ”. But with Western factories designed to produce upper-segment vehicles on a large scale, it is unlikely that many manufacturers will soon begin to change their plans to produce low-cost, affordable electric cars without existing consumer demand justifying the change. of their operating models. However, if the prices of electric vehicles are not reduced as a matter of priority, “there will be significant consequences for the entire automotive industry, as a large percentage of the population will never be able to afford electric vehicles.”
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