Since 2015, the price of an electric car in Europe and the US has become higher, in contrast to China, where prices have fallen by about half. As a result, Chinese brands are poised to land in Europe, claiming more market share from traditional companies. In fact, in the coming months, the first brands of electric vehicles are expected to appear in the Giraia Epirus at particularly attractive prices, according to data provided by the English entrepreneurial company JATO Dynamics, active in the automotive industry. .

In their latest report, research experts examined the price differentials of electric vehicles in major global markets. His most important finding is that there are large discrepancies in electric vehicle prices between Europe, the US and China.

In Europe, the average electric car cost just under €49,000 in 2015, rising to €56,000 in the first half of 2022, recording a 14% increase. As a result, an electric car in Europe is 27% more expensive than a petrol car.

In the US, in 2015 the average US electric car cost just over €53,000, while that price rose to almost €64,000 in the first half of 2022, up 20%. As a result, an electric car in the US is 43% more expensive than a gasoline car.

In China, in 2015, the average electric car in China cost almost 67,000 euros, while in the first half of 2022, this price fell to less than 32,000 euros, recording a decrease of 52%. As a result, an electric car in China is now 33% cheaper than a gasoline car.

The price difference between Europe-US and China is notable, according to JATO data, and this is mainly due to the different target orientation in the manufacturing sector. In Europe, automakers are focusing on premium electric models, which is keeping average EV prices high. In the US, consumers tend to prefer large cars and SUVs, which tend to be expensive and unprofitable in terms of electrification, with the exception of Tesla. In China, on the other hand, the government is actively promoting the transition to electrification by providing strong incentives.

The price difference between electric cars and conventional cars in China is such that buying electric cars becomes more profitable.

At present, Chinese car manufacturers are actively expanding the range and improving the quality of their models in order to reach European standards. In 2021, German automakers accounted for 21% of all new EV registrations in Europe, with Chinese automakers in second place with a 19% market share. However, China is not the only one looking to enter the sales arena in Europe. Something similar is desired by India, aided by the Indian government. In the first half of the year, as many electric vehicles were sold in India as in all the previous two years combined.

The report shows that very soon there will be a big price gap between European-American automakers and China. If European companies fail to bring down the cost of electric vehicles, middle- and low-income buyers are likely to switch to Chinese models. Prioritizing profit over market share could end up costing European and American manufacturers dearly, as Chinese and Indian manufacturers produce cheaper models that could capture more of the world’s markets, even those as mature as Europe and North America.

Source: RES – OIE