It’s a question that lots of motorists here in the UK and elsewhere in the world are currently asking. Will electric cars get cheaper?
Let’s dive into it and see if you’ll be able to afford an electric vehicle for your next car.
Electric cars will become cheaper over time
As with any new technology, the more electric vehicles that are made and sold, the cheaper they will become. This is because automakers will achieve greater cost efficiencies. Batteries, in particular, the most expensive part of an electric car, are expected to get cheaper over time.
BloombergNEF found that even without government subsidies, falling electric vehicle battery production costs, combined with dedicated production lines at automaker factories, will make them cheaper on average than conventional vehicles over the next six years.
Manufacturers aren’t making cheap electric cars
Other automakers, including established players such as Ford, General Motors and Honda, as well as startups such as Rivian, are entering the EV market with high-priced pickups and SUVs. Automakers are also using larger, more expensive batteries to give their EVs longer range.
Tesla’s market dominance, combined with expensive models and larger batteries from competing automakers, has pushed up the average price of new electric vehicles considerably compared with the Nissan Leaf’s heyday. Today, EV prices closely follow the average price of a luxury car.
Additional supply from multiple sources will obviously adjust prices as customers have more choice and manufacturers compete for their business. Secondly, as with any mass-produced product, over time manufacturers will increase efficiency to improve designs and reduce production costs, especially in cell optimization.
Will electric cars get cheaper?
With less than 10 years until new petrol and diesel cars are banned, many motorists are wondering if electric car prices will drop. According to experts, the cost of buying an electric vehicle is likely to fall in the near future as production increases to meet demand.
However, electric vehicles are only going to become more common in the future. As more new EVs hit the road, more used vehicles will enter the market, which will help improve the affordability of used EVs due to their wide availability.
This will help make EVs more accessible to a wider range of budgets.
