EV Myth: EVs are too expensive

March 11, 2024

EVs are expensive – paying with gold credit card

Electric vehicles have historically cost more to buy compared to their fossil fuel equivalents, but this is rapidly changing. The price gap is closing for both new and used EVs and analysts expect them to achieve price parity with internal combustion engine vehicles as early as 2025.

Despite market uncertainties stemming from media misinformation and political mixed messaging, greater competition and improved manufacturing processes are contributing to the decreasing cost of EVs.

Fleet adoption of electric vehicles has been high, and has fed the market with a good supply of used EVs, addressing the historic scarcity of affordable options.

And the market is evolving to meet consumer demand. More smaller, affordable EV models are being launched, and the entry of new pure-ev manufacturers from China is bringing a wider selection of vehicles and more price competition which ultimately benefits consumers.

And not forgetting that the overall cost of ownership for EVs is lower than ICE vehicles. Fewer parts mean lower service and maintenance costs, and lower running costs for most thanks to low-cost home charging.

These factors collectively contribute to diminishing cost barriers to EV adoption.

 

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