Electric vehicle prices have risen 28% in Europe but have halved in China over the past decade Car News

Electric vehicle prices in western markets have radically diverged of those in China over the past decade, a report from automotive data analysis firm Jato Dynamics showed.

Since 2011, the average price of a new electric car in China has fallen from € 41,800 to € 22,100, a decrease of 47%. In Europe, however, the average has increased from € 33,292 in 2012 to € 42,568 this year, an increase of 28%.

Average prices have risen again in the United States, increasing 38% over the past decade.

Electric vehicles are 52% more expensive than ICE cars in the UK, while in the Netherlands the figure is 54%. Norway is the only European country to reverse the trend, where the average EV costs € 8,500 less than the average petrol or diesel car.

According to Jato Dynamics, China’s progress over the past decade is the result of a consolidated effort to establish itself as a leader in the electric vehicle industry following significant government investments in 2009.

As a result, it has already started phasing out consumer incentives, as European manufacturers still rely heavily on government programs to make electric vehicles widely affordable.

China has also focused on the affordable segment of the market, with 40% of its sales of electric vehicles coming from the city car segment, with an average price of € 6,700. The cheapest electric vehicle can be bought for as little as € 3,700, which is in stark contrast to the minimum of € 15,470 needed to buy an electric car in Europe. In the United States, the cheapest electric vehicle costs $ 24,800.

“Governments and manufacturers have made significant progress over the past decade in expanding the market for electric vehicles. However, the industry remains under pressure as it continues to adapt to the demands of the Sustainable Development Goals and changing market forces, ”said the CEO of Jato Dynamics. David Krajicek.

“The electric vehicle incentive has helped Western manufacturers expand their offerings as consumer demand evolved. However, major industry players need to start closing the price gap between electric vehicles and ICE cars if they are to remain competitive with their peers in China.

The report says it’s unclear how European and American automakers will adjust when incentives for electric vehicles start to wane, but it cites Tesla and Volkswagen as examples of how to cut production costs and reduce costs. ” improve profitability.

Tesla has increased global production to a “record” of 109% in just two factories this year, while Volkswagen’s ID badge electric vehicle range is being rolled out on its scalable MEB platform that can accommodate any type. car.

“China has achieved tremendous success in the electric vehicle leadership race, developing and evolving its model lines at an incredible rate, which is a positive result of a number of factors working in tandem,” said Ye Qi, member of the Volkswagen Sustainability Advisory Council. .