Europe’s market for small electric cars will be dominated by China unless swift action is taken by the European Union to allow manufacturers to profitably provide cheap vehicles for the mass market, according to a report from consultancy JATO Dynamics.
The market for electric cars has accelerated quickly over the last couple of years in Europe but from a very low base. First-half sales of EVs in Western Europe were 483,304, an increase of 124% from the first half of 2020, according to. But market share was just over 4%. These sales have mostly been of upmarket and very expensive vehicles, while small electric cars at the entry level are still perhaps 3 times as expensive as internal combustion engine equivalents.
Sales are also heavily dependent on state subsidies, with German tax-payer handouts reaching almost $12,000, although this doesn’t apply to luxury cars.“While the pricing of EVs in China has significantly fallen by 47% since 2011, U.S. and European markets have seen EV prices rise over the same period by 38% and 28% respectively,” the report said.
“Today, consumers in China can buy a brand-new EV for as little as €3,700 . In stark contrast, the average retail price for an EV in the U.S. continues to rise faster than any other major global market and now stands at €36,000 , up from €26,200 ,” according to the report, entitled “EV’s: A pricing challenge”.
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