Will Electric Car Prices Fall in the Near Future? [2022 Update]
It’s no secret that electric cars are more expensive than their internal combustion engine equivalents – but paying a higher price for innovative technology is nothing new. In 2020, electric vehicles accounted for just around 3.2 % of worldwide automotive sales. But now, Batteries are getting less expensive to make due to increased production and technical advancements. It makes EVs more competitive with gas-powered vehicles. While it is unclear when Will Electric Car Prices Fall, one thing is almost certain: EV prices will decrease. Reduced and finally eliminated, price parity between gas-powered and electric vehicles will be a critical step in drastically shifting customer preferences.
Continue reading the article to know some interesting facts about the electric car future and this rising industry.
Electric Car 101
In the realm of automobiles, the electric vehicle (EV) is a still relatively new concept. It covers both the materials used to make them and the energy required to keep them running. Research has demonstrated that electric cars are good for the environment. Because electric automobiles’ engines get powered by electricity, they are completely ecologically friendly. They send fewer greenhouse gases and pollutants into the atmosphere than gasoline or diesel automobiles. Because they don’t have a tailpipe, pure electric cars emit no carbon dioxide while they drive. For a year, just one electric vehicle on the road could save 1.5 million grams of CO2.
Electric cars provide several advantages to drivers in addition to reducing pollution.
- Save You Money: Electric automobiles are less expensive to fuel than gasoline-powered vehicles. In the 50 largest US cities, every energy supplier provides a pricing plan that makes electricity cheaper than gasoline, resulting in a median annual savings of almost $770
- Provision And Maintenance: Electric cars feature electrically-driven engines, which eliminate the need for maintenance, everything is linked to the combustion engine, including several additional gas engine upkeep duties.
- Safety: Electric cars get subjected to severe fitness and testing protocols as internal combustion engine vehicles. Electric vehicles are more secure on the road in an accident because they have a lower density. If there is no flammable fuel or gas present, they are much less likely to explode.
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Given the increasing need for oil as supplies run out, an electric automobile will most certainly become the standard form of transportation soon. The fundamental question for the electric vehicle sector and conventional internal combustion engine car companies – and their consumers – is when EVs and gasoline and diesel automobiles Will Electric Car Prices Fall?
Will Electric Car Prices Fall – Prices Comparison
In 2021, the average cost of a light car in the United States will rise to $42,258. That’s $19,317 less than the average cost of an electric vehicle, which is $61,575. Because electric cars require less maintenance, have more extended warranties, and have fewer vehicles out of contract, EV manufacturers’ gross revenues must come mainly from vehicle sales. Customers will face more significant upfront expenditures as a result of this. Even though the lifetime costs of operating an electric car are on average lower than those of a gas-powered vehicle, one of the reasons for the EV’s poor sales is its significantly higher buying price.
To answer, Will Electric Car Prices Fall? The price gap between electric vehicles and gasoline automobiles is not as large as you might think; significant because EV prices have been decreasing while the average price of a gasoline car has been rising. The cost of developing batteries for electric vehicles is decreasing, making them less expensive to buy on average. According to studies, electric cars and vans will be cheaper to manufacture than fossil fuel-powered vehicles by 2027. By the middle of the following decade, they might be in a solid position to dominate all new automobile sales.
According to Wright’s Law, the cost of a lithium-ion battery cell drops by 28% for every doubling of units manufactured. Li-ion batteries’ charge got predicted to drop to roughly $100/kWh by 2023. It makes EVs as inexpensive to manufacture as gas-powered automobiles.
Tesla’s cheapest Model 3 sedan will set you back $37,490. It is less than the average cost of a new automobile in the United States. The 2008 Roadster sports car, the company’s debut model, had a starting price of roughly $100,000. As batteries have grown more affordable, the cost of a new electric vehicle has decreased dramatically over the previous decade or so.
Beginning in 2030, the UK government plans to ban the sale of new fossil-fuel automobiles, while European firms have lobbied the EU to set a 2035 deadline to sell new combustion-engine vehicles throughout the union.
That implies we could have to wait until 2030 for electric car pricing to catch up to what we’re used to paying for standard gasoline vehicles.
Why We Need a Reduced Cost for EV
Deep discounts are critical in making electric vehicles more acceptable to customers, especially when combined with increased range and a more reliable charging network. An electric car’s initial cost and monthly payment are more significant, considerable fuel savings are achievable; especially if you drive a lot of kilometers. Range anxiety will reduce when charging infrastructure improves. With more charging sites across nations and faster-charging speeds, and buyers may be willing to spend more for an EV at first.
Will Electric Car Prices Fall in Future – Bottom Line
Electric cars are an essential component of the sustainable energy revolution. Consumer awareness of climate change is fueling the electric vehicle market. The need for critical minerals, charging infrastructure, and other resources increase as electric cars rise. One of the many roadblocks that EV manufacturers must overcome on the way to widespread acceptance is cost.
Since all significant automakers are releasing new models, those considering purchasing an electric vehicle as their next vehicle may want to wait for a price decrease. So, we hope now you are in a better space to make your own prediction on will electric car prices fall in near future. Have a great day!