At the recent New York International Auto Show, the price differential facing US consumers between electric and petrol cars became very obvious. GM was offering a Chevrolet Cruze next to a similarly sized electric Bolt EV. The difference between the prices of the two cars was about $20,000. This difference could affect sales of electric cars.
The cost differential is mainly due to lower volumes of production and high costs of developing batteries. Subsidies, therefore, proved to be the lifeline for electric vehicles in the US during the early stages of their development. The only company, which is reaching price parity of electric and fossil fuel cars, is Tesla in its new Models S sedan and X crossover. Nissan Leaf will launch an extended-range Leaf model later this year. The success of that model would depend on pricing.
The influx of electric cars from most major companies will start in 2018 and some would likely to compete aggressively on price in the first year in order to establish a market share. Once consumers are convinced that electric cars are viable, a critical mass could be reached within a few years and subsidies would no longer be needed.
Electric cars face price hurdles in the US
Electric cars face price hurdles in the US
