Summary:
A new study highlights that electric vehicle (EV) prices have dropped significantly, making them more affordable than ever. According to Jato Dynamics, inflation-adjusted EV prices have fallen by 25% since 2018, narrowing the price gap between EVs and combustion engine cars. In the U.S., this gap shrank from 50% in 2021 to just 15% in 2023, thanks to increased competition and price cuts, particularly by Tesla, which continues to drive industry-wide pricing shifts and innovations.
However, price trends vary significantly by region. In Europe, the gap widened from 27% in 2021 to 29% in 2023 before dropping to 22% last year. This is due to combustion vehicle prices rising rather than EVs becoming significantly cheaper. Meanwhile, in China, EV prices have dropped more sharply, making American and European buyers seem overcharged by comparison, raising questions about fairness in global pricing.
A key example is the Polestar 4 Dual Motor, which costs €52,190 in China but €69,300 in the Eurozone and €79,424 in the UK. Other EVs, such as the MG4 and BYD Atto 3, also exhibit stark regional price differences. While EVs are becoming more affordable globally, Chinese buyers benefit the most. This highlights a growing disparity in vehicle affordability, sparking discussions about future pricing strategies.
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