EV Prices Are About To Fall; Here's Why and How You Can Benefit

electric cars have been quite pricey even for enthusiasts who own and appreciate them ever wonder why they come with such a hefty price tag even for a decent family EV you're looking at Shilling out a minimum of $30,000 that's pretty steep right but here's the exciting part those high prices might not stick around for much longer yeah you heard that right EV prices are gearing up to take a nose dive and that's not just wishful thinking this time trust us we've been keeping our eye on this you see a few key factors suggest a significant drop in EV prices on the horizon and when we say significant we mean a game changer it's not just idle speculation there are solid reasons behind this prediction now we get it we've heard Promises of Cheaper electric cars before only to be left waiting but you know this time feels different the Stars seem to be aligning and it's about time we dive into why reason number one why electric cars will become more affordable boils down to simple economics supply and demand despite a slight dip in demand last year there's been no slowdown in the production of electric vehicles in fact it's been quite the opposite now why the sudden surge in production well part of it has to do with government regulations you see policy makers are pushing for a Greener future and one way they're doing that is by imposing Targets on car manufacturers these targets known as the zero emissions vehicle or Zev mandate require a certain percentage of each automaker's lineup to be purely electric as of now the mandate dictates that at least 22% of every car Maker's range must be electric and it doesn't stop there these targets ramp up over the years reaching 100% by 2035 that means car manufacturers are under pressure to turn out more electric vehicles to meet these requirements now with so many electric cars flooding the market competition is fierce and what's the best way for manufacturers to make their vehicles stand out you guessed it by making them more affordable it's a simple strategy if you want to attract buyers who might still be hesitant about switching from Trad additional petrol or diesel vehicles offering a competitive price is key so as more electric cars at the streets manufacturers will likely start slashing prices to stay ahead of the game it's just basic supply and demand Dynamics for consumers that means a wider range of Affordable Electric options to choose from win-win right the second reason we believe EVS are poised to become more affordable for a broader audience revolves around the increasing availability of used electric car cars now one of the simplest ways to get behind the wheel of a new EV is through leasing or financing especially if you're using it as a company car there are substantial tax breaks for doing so in many countries which makes it an attractive option for many businesses as a result more and more of these leased electric cars are hitting the end of their lease periods and entering the resale Market this influx of used electric cars translates to more choices and lower prices for consumers it's a win-win situation Plus plus let's talk about depreciation while some may criticize EVS for their higher initial depreciation in the world of used cars this can actually work in your favor the prices of used electric cars drop rapidly making them more affordable for those in the market now we know what you might be thinking how about the battery life that's a valid concern but here's the thing even those cheaper used electric cars often come with substantial battery warranties that are still intact so reason number three why electric cars are bound to become more affordable is quite straightforward Tesla uh let's face it Tesla holds significant Sway in the electric car market when they make a move the whole industry takes notice case in point last year Tesla slashed the price of the model y by a whopping $33,000 now that's no small change but here's where it gets interesting because Tesla is such a major player it's actions send ripples throughout the market when it drops prices other automakers follow suit it's a domino effect suddenly you see competitors scrambling to keep up whether it's by lowering their prices offering better financing options or throwing in additional discounts in fact the average discount on a new vehicle right now is more than 10% off the list price and some car makers are going down even further with discounts exceeding that figure so thanks to Tesla's influence and the competitive nature of the electric car market consumers are reaping the benefits in the form of lower prices and better deals it's like a win-win situation for everyone involved except for maybe traditional gas guzzling cars but hey that's a whole other story reason number four why EVS are poised to become more affordable centers around the rise of Manufacturers like byd or build your dreams from China while Tesla often steals the spotlight it's important to note that byd actually became the biggest selling electric car brand in the world last year so how do they do it by selling a stag ing number of cars in China and now they're setting their sights on Europe with one clear goal to replicate their success by selling heaps of cars over here too what gives byd and other Chinese manufacturers an edge well it all boils down to cost thanks to low battery production costs in China companies like byd gwm and even mg can undercut their European counterparts while still turning a profit let us paint you a picture in China a byd dolphin can go for as low as 16 ,760 impressive right even after factoring in important tariffs and other taxes the price in the UK still hovers around €25,000 and $38,900 in the US but compared to its Rivals that's still a pretty sweet deal and it's not just byd Making Waves Brands like Neo and many others are also entering the fry with some seriously intriguing offerings so what does all of this mean for consumers well with more competition from these Chinese manufacturers and their Innovative designs EV prices are likely to continue trending downward after all who doesn't love a good deal on a Sleek electric ride so on to reason number five why EVS are inevitably going to become more affordable it's a pretty straightforward reality check for traditional European car manufacturers let's break it down right now buying an electric car will typically set you back around 35% more than its petrol powered counterpart right ouch this significant price difference is mainly due to the higher materials and development costs associated with EVS batteries in particular are a major contributor to this cost Gap not only do they require substantial amounts of energy to produce but they also rely on pricey raw materials but here's the Silver Lining battery production costs are on a downward trajectory as technology advances and economies of scale kick in the cost of making batteries is steadily decreasing it's a trend that's only going to continue as manufacturers refine their processes and suppliers become more efficient now here's where rubber meets the road un obviously intended faced with a sluggish EV market and growing consumer demand for Affordable Electric options European car brands have a simple Choice adapt or face the consequences it's a classic case of survival of the fittest either they lower their prices to compete with petrol equivalents or risk being left behind in the dust so as the pressure mounts and market dynamics shift it's inevitable that traditional car manufacturers will have to make some tough decisions for consumers that means one thing more affordable electric cars are on the horizon it's just a matter of time reason number six why EV prices are on a downward trajectory is the decreasing cost of batteries according to Bloomberg EV battery prices have plummeted by a staggering 89% between 2010 and 2020 despite this not always being apparent to Consumers so let's explore why this is happening first economies of scale play a significant role simply put the more batteries manufacturers produce the cheaper they become to make this principle applies across Industries and has a profound effect on reducing production costs secondly manufacturers are localizing the extraction and processing of raw materials for batteries this not only saves on costs but also reduces carbon emissions associated with Transportation another key factor is the establishment of gigafactories by car companies to produce batteries where the vehicles are assembled take Nissan for example investing billions in constructing such facil ilities in places like Sunderland UK furthermore car companies are becoming increasingly Adept at repairing and repurposing existing batteries Tesla boasts that 100% of its batteries are recycled contributing to environmental sustainability while also driving down costs however perhaps the most exciting aspect is the emergence of new battery types while all EV batteries utilize some form of lithium ion technology there is a myriad of other ingredients that can be incorporated to reduce costs for instance lithium ion phosphate or lfp batteries offer a slightly shorter range but are cheaper to produce Tesla utilizes lfp batteries in the cheapest version of the model y enabling them to slash the price by $3,000 so there you have it these are the six compelling reasons why we firmly believe that electric cars are on the brink of becoming more affordable now than ever before now I know what you might be thinking you know isn't all of this just wishful thinking I certain hope not but as they say the proof is in the pudding so we'll see if these predictions hold if you enjoyed this video please like And subscribe to the channel thank you

Channel: Green Car Buzz

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Keywords: cars, automotive, ev, EVs, toyota, ford, honda, car news, automotive news, EV news, electric cars, electric vehicles, electric vehicles news, toyota ceo, ford ceo, honda ceo, electric cars news, hydrogen cars, hydrogen engine, ford news, tesla news, toyota news, honda news, greencarbuzz, chargedrive, Tesla, Elon Musk, ev cars india, electric cars 2024, ev car market, ev car news, ev future, tata ev car, tata ev car news, gm, gm ev, ev problems, ev report, ev market crash

Id: -m3VKaCbDBk

Length: 9min 39sec (579 seconds)

Published: Mon Apr 08 2024