EV price battle: America nears supremacy as costs plummet
Rho Motion has revealed that North America is close to overtaking Europe, in the race to who can offer the lowest prices for electric vehicles, for consumers who want to lower their carbon footprint.
Based in London, Rho Motion is an EV and energy transition data analytics company that was founded in 2018. Now, if you live in North America and you’re looking for a climate-friendly New Years Resolution, here’s an idea: Rho Motion has suggested that EV consumers in the USA will be paying less for a new EV than their European counterparts, from as early as next month.
Electric vehicle evolution and the changing electric landscape
Rho Motion provides comprehensive forecasts and accompanying analysis for the energy transition, particularly on the development of electric vehicles, batteries, charging and infrastructure markets.
Its prediction for lower EV prices in North America stems from Tesla’s price reduction, which has caused other vehicle manufacturers to pause production in order to secure profit.
Sharing its predictions for North America overtaking Europe in January 2024, Rho Motion has noted:
- The average base cost of the best-selling EVs in the USA, has fallen from US$60,000 to US$44,939 since the same time in 2022, partly due to Tesla’s aggressive price position.
- Over the same period, the EU has seen a slight increase in average price from approximately US$41,000 to US$44,288 due to increased manufacturing costs.
- China continues to lead the way in affordable EVs at an average price of US$20,614.
Balancing affordability and profitability in the Electric Vehicle sector
William Roberts, Automotive Research Lead at Rho Motion, spoke exclusively with EV Magazine to discuss productivity and profit.
“What with Tesla pushing down the price of EVs aggressively in the US, consumers there are finding they can go electric for less,” he said. “This has meant legacy manufacturers like Ford and GM are delaying production ramp up to protect profitability as margins on EVs decrease further into the negative. Both affordable consumer prices and profitable production will have to be reached or face being pushed out completely. If Europe wants to win the price war and safeguard competition, they will need to make sure financial support across the industry remains.”
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