This is a controversial question, are electric cars only for the wealthiest families? Electric cars, which are sometimes twice as expensive as heat engines, remain a luxury product for a large part of motorists. A conclusion that is not excluded by the heads of European manufacturers, who assume their elitist pricing policy for electric motors. But when will the electric car become cheap in Europe?

Electric cars, manufacturers guess their prices and condemn inconsistent policy decisions

Studying the different prices of electric cars in Europe, it is impossible not to shudder at the prices that are applied by various European manufacturers. With equivalent trim, the electric motor is in many cases 6,000-10,000 euros more expensive than the thermal version. A conclusion that the manufacturers do not deny. Rather, they assume it. Yes, in their joint interview last Sunday, given to our colleagues from ParisianCarlos Tavares and Luca De Meo assume elite prices for their electric models.

Renault CEO Luca de Meo says: “We’re still in a technology breakthrough phase where, by definition, new products are expensive. Today, beneficiaries who have funds, a garage and a terminal at home can afford an electric car. It’s not politically correct to talk about it like that, but it’s the truth.”. The same observation applies to Carlos Tavares, CEO of Stellantis, who mentions the “social sustainability issue” due to electric car prices.

Words that leave no doubt, electric cars will continue to be expensive in the coming years or even the next decade. If Luca de Meo assures that manufacturers “will manage to democratize the electric car”, the fact is that European manufacturers do not seek to lower prices.

However, the electric car is becoming more and more democratic. As proof, sales of electrified vehicles this year in France broke a new record, the market share exceeded the symbolic bar of 20%. So why are electric cars so expensive? Simply because the European countries did not like the decision to ban heat engines.

Many believe that the state authorities have betrayed or ignored them. Thus, car brands are forced to produce electricity, despite the colossal investment this entails.

This is why prices will be so high in the coming years. Manufacturers transfer their expensive investments in the transition to electricity to the prices of various models. States must take on social discontent with these tariffs. Yes, in an interview given to our colleagues from Le Parisien, Carlos Tavares regrets that politicians took “the topic is upside down, leaving aside the issues of energy and infrastructure”. Carlos Tavares also noted that at the beginning of the year “Politicians, not producers, chose electricity”.

ACEA has already warned about the prices of electric cars in 2019

As a result, manufacturers do not want to lower prices enough to make an electric car unavailable for a long time. However, the topic is not new. Already in 2019, ACEA (Association of European Automobile Manufacturers) in its study indicated the correlation between the electrification of vehicles and GNP per inhabitant. At the same time, it was noted that the richest countries in Europe turned out to be those whose manufacturers sold the most electric cars.

Norway, Sweden, the Netherlands or even Germany. Conversely, less affluent European countries were the ones where EVs sold the least. A 2019 study found that the Renault Zoé is twice as expensive as the Renault Clio.

Three years later, the situation has not changed. It became even worse. Since the COVID-19 pandemic has already occurred, Europe is experiencing inflation that is seriously affecting the purchasing power of households. Thus, the gap between the price of electric cars and households has increased even more. Today, it is considered that the typical buyer of an electric car is a person who lives in the city, class CSP + and drives less than 10,000 kilometers per year. If these criteria are refined every year, the electric car is still intended for wealthy customers of the manufacturers.

Will the rescue come from Asian manufacturers?

So will the electric car remain a vehicle for the rich? Not necessarily. Thus, the recent breakthrough of Asian manufacturers in Europe is changing the cards. These manufacturers, often subsidized by the government, offer competitive prices. While prices remain high, the levels of finish and equipment on offer make for a very complete product. Most of these manufacturers have extensive experience with electric motors.

Thus, this impressive breakthrough in the European market may force other manufacturers to lower prices. Big brands in Europe also expect a fierce commercial battle in the coming months.

Another source of customer satisfaction, entry-level models can be very interesting. Like Dacia Spring, whose sales increased by 570% in the first half of 2022. It should also be noted that various types of aid provided by European states also facilitate access to an electric car.

But the latter should remain an expensive product, look very expensive, for the next ten years.