Analysis of global electric vehicle (EV) prices over the last 10 years has highlighted that more effort is needed to provide affordable models in the UK.
Jato Dynamics found that EVs were, on average, 52% more expensive in the UK than equivalent internal combustion engine (ICE) models.
It’s new report, EVs – A pricing challenge, highlights that the pricing of EVs in China - the world’s largest market for EVs – has significantly fallen by almost half (47%) since 2011, while US and European markets have seen EV prices rise over the same time period by 38% and 28% respectively.
David Krajicek, CEO at JATO Dynamics, said: “Governments and manufacturers have made significant progress over the last decade in expanding the EV market, however, the industry remains under pressure as it continues to adapt to the requirements of sustainability targets and shifting market forces.
“The incentivisation of EVs has supported Western manufacturers seeking to expand their offering as consumer demand has evolved, however, the industry’s key players must start to address the price gap between EVs and ICE cars if they are to remain competitive with their peers in China.”
In Germany, the average retail price of an EV is €39,755 (£34,068) compared to €36,979 (£31,689) for ICE vehicles. Norway is the only exception – the average retail price for EVs is €44,500 (£38,134) compared to €53,000 (£45,418) for ICE cars.
In China, one can buy a brand new EV for as little as €3,700 (£3,170).
A recent study by Arval’s found that 43% of fleets feel the purchase price being higher than that of a petrol or diesel car is still a barrier to adoption – a reduction from 65% last year.
> Interested in comparing electric vehicle data? Check out our EV tool.
> Interested in ensuring the efficient use of EVs. Check out our dedicated editorial sections: Insight & policy | EV news | Charging & infrastructure | Costs & incentives | Benefit-in-kind | EV case studies | EV road tests