Just last year, several analysts forecasted that the price of electrical vehicles was expected to drop in the coming few years. Prices of battery EVs (electric vehicles) have already plummeted significantly.
Experts expect that their prices will be at par with diesel or petrol vehicles between 2025 and 2027. They also predicted that the prices of these vehicles will come down very soon.
The expected price drop is partially due to the massive advancements seen in car batteries and the increase in the mass production of vehicles.
Will Gas Prices Go Down With More Electric Cars?
The last three years witnessed impressive growth in the field of electric cars. This was amid the shrink in the market for regular cars amid the global pandemic.
It was a period when manufacturers struggled with bottlenecks in the supply chain. According to the law of demand and supply, gasoline is likely to be available in abundance.
The demand for gasoline vehicles may reduce to a level to trigger a fall in the price. When there are fewer gasoline vehicles on the road, its demand will also come down with a simultaneous price fall because of its surplus availability.
What Will Be Electric Car Prices in the Future?
Contrary to common perception, the price variation between gasoline cars and electric vehicles is not as great. It is particularly because the prices of electric vehicles have been plunging while the cost of the average gasoline vehicle is going up.
The cost of the widely used lithium-ion batteries came down 97 percent as compared to their commercial introductory price in1991. Advancements in battery chemistry are also a major contributor to the reduction in the cost of electric vehicles.
An interesting point to note here is that when Tesla introduced cobalt-free batteries in the Model 3 cars, the sales price went down by 20 percent in Australia and 10 percent in China. The next few years may see a significant reduction in the prices of electrical cars.
Will Electricity Prices Go Down in General?
Today, the prices of gas and oil are witnessing a record high. Just a couple of years ago, the situation was just the reverse. The impact and scale of COVID-19 became obvious with the lockdown in the economies and the demand for energy plummeting.
The reason was quite evident. People traveled less during these last couple of years amid the pandemic.
The gas prices vary region-wise. For instance, the United States of America has been self-sufficient and enjoys relatively low prices.
On the other hand, consumers in Asian and European nations are competing for marginal gas supplies on the international market.
The prices of electricity increased in December last year and then in February this year once again for some days. However, this drop in the electricity price can be misleading.
The cumulative averages are more important. After all the monthly average costs are not showing a bright future.
Compare Electric Car Prices
The growth of electric cars in recent times has been truly phenomenal. Just a few years ago, in case someone wished to purchase an electric car, there were not many choices available on the market.
Today, there are several attractive options on the market. Here are some of the electric car prices in the Indian market:
- BMX i4-INR 69.90 Lakh
- Kia EV6-INR 59.95 to 64.95 Lakh
- Tata Nexon EV-INR 14.79 to 17.40 Lakh
- Hyundai Kona Electric-INR 23.84 to 24.03 Lakh
- MG ZS EV– INR 21.99 – 25.88 Lakh
- Jaguar I-Pace-INR 1.06 – 1.12 Crore
- Tata Nexon EV Max-INR 17.74 to 19.24 Lakh
What is the Cheapest Electric Car?
Are you planning to purchase an electric vehicle soon? It is a known fact that the cost of EVs is higher than that of gas-powered cars.
However, all-electric vehicles will not break the bank. Apart from some high-priced EVs from Elon Musk’s company, many EVs for the model-year 2022 can be purchased for less than 35,000 USD.
What we are trying to state here is that one does not have to spend a fortune for buying an EV.
Some of the cheapest EVs you can consider buying are Chevy Bolt EV, Kia EV6, and Ford F-150 Lightning.
The cheapest EV you can opt for is the Nissan Leaf, which was introduced in 2010. If you spend another 5,000 USD on the base price, a bigger battery pack will be included with a range of 226 miles.
How Much Does It Cost to Charge an Electric Car?
In case the cost of electricity is ¢10.7 for every kilowatt-hour, charging an electric vehicle will cost around 6 USD for reaching a full charge. We are assuming that the EV in question has a range of 200 miles.
FAQ Relating to Electric Vehicles and Price
1. What is the maximum speed of an electric bike or car?
Its speed can be as much as you prefer. Similar to a petrol-powered bike or car, you may tune and modify your electric vehicle to attain the optimum performance level.
2. What is the time taken for recharging an electric vehicle?
If your EV has a valve-regulated-lead-acid battery pack or lead-acid batteries, charging it fully will take the entire night. The e2o hatchback from Mahindra takes 5 hours for a full charge while the electric scooter from Hero takes about 8 hours.
3. What is the charging cost of a plug-in vehicle?
The exact cost will depend on the electricity rates and the vehicle model. However, it will be less than INR 40, on average for an all-electric scooter or car.
Are Electric Car Prices Going Down?
In the beginning, it will be apt to mention that there is no clarity on how fast the average price of EVs will see a downward curve. However, one thing is certain – the price of electric vehicles will come down in the future.
What are the major reasons for this expected decline in price? The EV space has seen instant innovations and advancements.
Additionally, there has been a massive increase in the production and availability of these vehicles on the market. As the availability of EVs becomes more, car manufacturers are planning to make them more accessible to an increasing number of drivers.
The good news is that there has been a drop in the cost of new EVs. The price drop will be perfect for all those drivers who are looking for greater efficiency and electric power.
Another top reason for the decrease in the cost of EVs is the growing competition in this special segment. Last year saw several automakers showing a higher commitment to EVs but also serious in arranging for infrastructure for increasing production.
That, in turn, has enabled carmakers to create more competition and streamline their production process more. Overall, these car manufacturers dropped prices for bringing more consumers into the electric car segment.
How Much Will Electric Cars Cost in 2023?
For many years, electric vehicles were beyond the reach of the budget of many customers. Things are slated to change with the introduction of the next generation of electric vehicles being introduced in the market.
These factors have led to the reducing prices of those battery-powered vehicles. With the skyrocketing prices of gas, it is a sensible decision to go for an affordable electric vehicle now.
Check out the cost of some electric cars in 2023?
- Chevy Bolt EV: $27,590
General Motors has announced that it would reduce the price of the Bolt EV for the model year 2023. Thus, this EV now defeats Nissan Leaf by being the cheapest electric vehicle.
- Nissan Leaf: $28,425
The Nissan Leaf is available in 2 distinct battery sizes. The cheaper version comes with the price tag we mentioned above.
- Chevy Bolt EUV: $29,190
It is slightly more spacious and comes with fabulous tech features. As General Motors declared a price slash in both the Bolt variations for the model year 2023.
- Mazda MX-30: $34,695
You will agree that this electric Mazda looks weird with its queer half doors. It has a range of only 100 miles for every charge and is available in only California.
How Much Will Electric Cars Cost in 2025?
According to the Economist publication’s recently published report on the auto industry; customers will have to pay much less to buy an EV by 2025. Experts feel that the cost of these cars will be soon at par with the prices of traditional vehicles.
We can expect this to happen the moment the prices of the batteries drop below 100 USD for every kilowatt-hour.
All this should happen once the battery prices fall below $100 per kilowatt-hour.
Why Are Electric Cars So Unaffordable?
High-capacity batteries, transmission, and electric motors require complex electronics systems for their effective management. Certain battery-electric vehicles are also equipped with highly advanced features for driver assistance.
So, it is not surprising that electric vehicles are more expensive than their traditional counterparts. Out of the above-mentioned components we mentioned earlier, the battery pack is the costliest.
The reason for the pack being costly is the battery, which is crucial for storing electric energy.