Electrified cars are a reality and the offer is getting more and more varied and numerous. Driven mainly by European anti-pollution regulations rather than by a real demand for a large volume of the market, recent times have marked the way towards this type of mobility. However, their prices, although they have been changing, have been seen as a difficult obstacle to jump.
The times mark the way to the electric
It is true that more accesses are appearing for its purchase, such as the government aid plans of the countries, such as the Spanish Moves. That said, in recent times they have reached a level of autonomy, performance and price that make them a perfectly valid option for an increasing number of drivers.
This, with the only requirement of having a connection point in the garage and not making trips much longer than 400 km between recharges, especially if there are steep slopes along the way. Although they are becoming a more plausible option thanks to the cost reduction, which allow us different choices, the truth is that this has not always been the case.
It’s more; the price of electric cars has suffered a continuous swing. It is true that there are currently reasonable variants, whether they are 100% electrified, plug-in hybrids or conventional hybrids. However, and although at the beginning it remained in difficulties for the average user, its evolution has made it smaller.
Much has to do with technologies and elements that equip to this type of vehicle. The main one is the battery, the compound with the highest cost, and which is generally the one that makes these have a higher price. In fact, in recent weeks it was collected that by 2023 the cost of kWh would fall to $ 100, as predicted by Bloomberg. An unstoppable dynamic that has also affected cars.
The comparison between combustion and electricity
The current handicap that these cars have is the production cost. This is what makes these models more expensive at their final price, which still puts many consumers back. Thus, finally popularizing electric technology in a market dominated by oil will depend on the ability of brands to match their prices to diesel or gasoline.
It is not an easy task, although many strong voices point to a horizon of no more than four years. Either by obligation (remember that the European Union has established for this year reduce average emissions of vehicles sold below 95 grams of CO₂) or by conviction, manufacturers have opted for electromobility …
But without ruling out oil. The coexistence of technologies is the best option in the short term. And it is that there is still a long way to go and they know it better than anyone. Given this, the price matching between electric cars and combustion cars is one of the potential milestones that will mean a change of no return in the automotive industry.
We see it from the hand of BloombergNEF analysts, who assure that the evolution of the different markets that influence the production and sale price of an electric vehicle make this moment closer than expected. In this sense, this development will make the price of electric vans equal in 2025.
Subsequently, in 2026 it will be for mid-size passenger cars and SUVs, and in 2027 for smaller vehicles. The entity’s analysis also recognized that in 2030 an electric car will be a 18% cheaper than a similar combustion car.
Cost comparison
If something is seen in society, it is the feeling that the transformation is imminent and that in the future every car will be electric yes or yes. Despite this, there is still almost a decade until the offer by manufacturers goes from the combustion of polluting fossil fuels, to the use of zero emission electrons. Given this, the cost comparison takes us directly to those of gasoline or diesel.
Thus, the fewer moving parts subject to wear and tear, the absolute absence of oil and other elements that do not exist in BEVs, make the difference when it comes to checkout throughout the life of the car. Stopping at the gas station is also decisive when it comes to containing the operating cost of an electric car, which is powered by electricity, generally in the homes of its owners, enjoying low rates compared to the cost of a liter of gasoline or diesel. .
However, knowing how much electric cars cost is far from the initial price we pay for it. Every year we must add fixed expenses plus other maintenance depending on the use we give it:
- Electricity. Electric motors are much more energy efficient than combustion engines, which is why their prices also vary. This, together with the fact that the kWh in off-peak hours does not cost more than 0.10 euros (with taxes) and gasoline, easily, 1.30 euros / liter, is a big difference. 100 kilometers in an electric car costs 1.30 euros, while in a gasoline one, 6.5 euros: five times more.
- Maintenance. At the maintenance level, an electric car has a much lower price, especially if we consider that these do not have so many parts subject to wear, which makes their maintenance much easier. As a guide, currently, this represents a saving of 25% compared to a conventional vehicle, which can represent more than 2,000 euros over 10 years.
- Taxes. Something that draws the attention of these is at the fiscal level. Yes, because, in detail according to which cities, they can benefit from multiple discounts on the Traffic Tax, which can reach 75%.
- Recharge. If we live in a single-family home with a garage, this is an easy point to solve, but if it is a community garage, it is more expensive. Its installation costs approximately € 1,200, although it is currently 70% subsidized.
Advances and development
It is true that, beyond their price, electric cars still run into several barriers that hinder their final take-off, such as the shortage of charging points. However, companies are accelerating their investment in electric stations and, at the same time, buying a ‘zero emissions’ vehicle is becoming more affordable.
In fact, and if we look back, we will find that, in just two years, since 2019, the price difference between electric cars compared to combustion cars has increased. reduced by 47%. These are data from the MSI consultancy provided to Unoauto, Sumauto’s specialized new vehicle portal.
According to this report, the average price of electric vehicles sold in 2021 is 41,571 euros, 4,000 euros more than a year ago. But well below the 47,267 euros of those that were marketed during 2019. An evolution that sets the gap with respect to the diesel car at only 5,700 euros, after reducing by 58% since 2019. And of 13,617 euros for gasoline (- 40%).
If we look at years like 2015, in Spain electrified vehicles (still seen as the first generation) had prices similar to those of 2019. In fact, the average cost between the two years was barely 1,500 euros, when, then, this was located around the 45,500 euros.
However, in 2012, even without much market in Spain, we did have some more affordable cars, so the average was quite below. This was the case of the Nissan Leaf, one of the benchmark cars in the segment. At that time, the Japanese was around 37,000 euros, while others such as the Peugeot iOn did it on the € 30,000.
Currently, there is a clear premise: the higher the value of the vehicle, the difference between fuels is smaller because, in the high ranges, in addition to technology, the customer pays for the brand image. For example, today the BMW iX3 costs about 72,300 euros, only 13,050 more than its gasoline equivalent, the BMW X3 Xdrive 30ia (59,050 euros).
Evolution according to categories
The decrease in the price of electric cars is mainly due to the emergence of more models in the market. With more variety, prices fall and are repositioned at levels that are increasingly affordable for the buyer.
However, from Asepa (the Spanish Association of Automotive Professionals) they point out that «the electric vehicle is still a high-end vehicle and only available to households with incomes above 2,500 euros per month, which are two out of every ten in our country (INE data) »
The trend is, however, to keep shrinking the prices of electric cars. Especially with the emergence of more manufacturers in this segment and betting on much more accessible models. A clear example is the Dacia and its Spring model. Its starting price is only 16,548 euros and, taking into account the aid of the Moves III Plan, it could stay below 10,000 euros. Or what is the same; at some levels only seen in very particular models such as the two-seater Renault Twizy. This is a trend followed in the three variants: the purely electrified, the hybrids and the plug-in hybrids.
Electrical
These cars, seen as the main plan for the future of mobility, are the ones that have suffered the most from the price variation. Most of the cheapest electric vehicles on the market belong to the smaller segments. They are cars focused mainly on urban and peri-urban routes, so their purchase price is a key factor.
And, if today the average price of these is located at 41,571 euros, 10 years ago we had them around 25,000 euros, also due to improved technologies, new more powerful batteries, longer autonomies for longer trips and vehicles with a current layout. The most specific case is the Zoe, which in 2016 stood at 24,600 and in 2019 it did so for 26,120 euros. A growing trend that is expected to decline.
Hybrids
Today, these cars are located in the general segment below 25,000 euros, with models in the Spanish market that can even be made because they are in the barrier between 10,000 and 20,000, and all with a gasoline thermal engine. These are cars that, as a general rule, are much more accessible, so they are usually well below the prices of a purely electrified one.
This is because the technology that is equipped with practically all the models (both the newest and the oldest) does not require maintenance or parts as exclusive as an electrified one can. In any case, and due to the appearance of its competition with plug-ins (also hybrids), its price has quite varied in reference to electric.
For example, if we go back 10 years, in 2011, we find that these models were at parity with some electric cars. So, it was usual to see them above the 25,000 euros, especially in those that were of Japanese brands, such as Honda or Toyota, in both cases. Five years later, at the height of 2016, these had already dropped around 22,000 euros.
Plug-in hybrids
The latter are those that share all the technology between the 100% electrified and the conventional hybrid, so it is quite common to find them today also around the 40,000 euros, as happens with those that work with batteries and electric motor.
Here, and because they are quite new, the difference does not cover that much: in 2017 and 2018 they were still close to 42,000 euros in most cases. The reason is none other than because the elements of these vehicles are much closer to the purely electric ones, so their costs are usually seen on equal terms.