Despite getting up battery costscar companies are bringing more affordable electric vehicles onto the market.
Last week, General Motors unveiled the upcoming Chevrolet Equinox EV, a small SUV with an expected starting price of around $30,000 and a range of 400 km per charge.
Although the exact price of the Equinox EV won’t be announced until next year, it’s expected to be significantly cheaper than the current average of around $65,000.
A lower meet Price Point, without significantly sacrificing range, is key to compelling mainstream buyers to switch electric vehicles.
Auto industry analysts say that if the Equinox makes efficient use of interior space with plenty of cargo and passenger space, and if it’s styled similar to current gas-powered small SUVs, it should be popular with buyers.
The Equinox EV is only slightly more expensive than regular compact SUVs
A $30,000 EV is only slightly more expensive than a comparable small gasoline SUV. The Toyota RAV4, the top-selling non-pickup vehicle in the US, starts at just over $28,000.
About 20 percent of all new cars sold in the US are compact SUVs.
“It’s a perfect vehicle for many different users, whether it’s a small family or maybe an empty nester,” said Jeff Schuster, president of global forecasting at LMC Automotive, a Detroit-area consulting firm. “You have space to carry things, but it’s easy to drive.”
In the past, price was played off against range in electric vehicles
Until the last few years electric Vehicles were either expensive, aimed at wealthy luxury buyers, or cheaper but with limited range. For example, a base version of Tesla’s Model 3, the most affordable model from the top-selling electric car brand in the US, starts at more than $48,000 (€47,000). a bigger one Tesla The Model X SUV starts at over $120,000.
The only EVs with starting prices below $30,000 (shipping included) are now versions of the Nissan Leaf and Chevrolet Bolt. Both are smaller than usual gas-powered compact SUV. The Mini Cooper Electric, Mazda MX30 and Hyundai Kona Electric are all priced at $30,000, according to US online auto retailer Edmunds.
Kia Niro EV, Hyundai Ioniq 5, Ford F-150 Lightning Pickup, Volkswagen ID.4, Kia EV6, Toyota b24x, Ford Mustang Mach E, Audi Q4 e-tron, Subaru Solterra, Polestar 2 and Tesla Model 3 have starting prices in the $40,000.
Why are electric cars more expensive than petrol cars?
GM may find it difficult to keep the Equinox price around $30,000, mainly due to minerals such as lithium, copper, cobalt and nickel – key components of EV batteries – have been increasing rapidly. This is due to a limited number of mines and increasing demand as almost all automakers introduce new electric vehicles.
Ivan Drury, director of insights at Edmunds, says that even if GM is able to keep the Equinox’s starting price around $30,000, demand will likely be high enough for the company to focus on higher-priced versions. And some dealers have priced EVs above the suggested retail price due to high demand. In the first half of the year, sales of electric vehicles in the United States rose 68 percent to nearly 313,000 compared to the same period last year.
US tax credits could make electric vehicles more affordable
Some EVs could also get a lot cheaper in the US with Federal tax credits of up to $7,500 (€7,400) starting next year under the Inflation Reduction Act. However, meeting federal requirements can be difficult.
The vehicles and batteries must be assembled in North America and the new law takes effect Requirement the battery Minerals and parts must come from the continent. Most minerals like lithium are key battery Ingredient, are now imported from China and other countries.
The Equinox checks the North American assembly box. It is made in Mexico. Where exactly, the company does not say battery be made, but GM has announced three joint ventures battery factories in the US, including one already operational in Warren, Ohio.
From there, GM works to meet the other criteria for receiving the tax credit. “We’re really working our way through the rules and regulations right now,” said Steve Majoros, Chevrolet’s vice president of marketing. “We think it all fits together well, but there are more details to come.”
Majoros hinted that as GM takes more control of its supply chain, it could take a few years to meet all government requirements to get full recognition EV parts.
How does the Equinox EV compare to gas versions of the model?
The Equinox EV, Majoros says, is longer, wider and slightly shorter than that gas versions of the same vehicle. GM used new interior packaging methods to create comparable passenger and cargo space to the gasoline Equinox. The relatively small price difference between the two should give many customers food for thought EV about gas, he predicts.
GM CEO Mary Barra said the company will overtake Tesla as the nation’s largest seller of electric vehicles by mid-decade. The Equinox EV is a step in that direction.
“We think it’s going to be one of the products that will really help mainstream adoption really take off in the market,” says Majoros.