2023-09-16 12:10:01
Car manufacturers can sell small electric cars made in Europe for 25,000 euros and make a profit, according to a new study. According to the Transport & Environment (T&E) study, based on the analysis of the consulting firm Syndex, the decrease in production costs and battery prices would make the electrification of segment B vehicles feasible by 2025.
According to environmentalists, the availability of smaller, more affordable electric vehicles could be a game-changer for mass adoption of the electric car and will be crucial for European manufacturers to resist the emergence of Chinese companies in Europe.
European manufacturers can make a reasonable 4% profit margin on a small battery electric vehicle produced in Europe in 2025, according to the report’s “favorable market conditions” scenario. In this way, the cost of batteries would be reduced to $100 per kWh, according to the main forecasts.
The report takes into account other direct cost reductions, while maintaining broad industry expectations around indirect costs and profit margins. The B segment vehicle would have a 40 kWh LFP battery and a range of 250-300 km.
Carlos Rico, responsible for car electrification at the Spanish office of T&E, considers that “prices are one of the biggest obstacles for drivers to opt for electric vehicles. The small 25,000 euro model will change the rules of the game for the public adoption of the electric car. For European manufacturers to compete with their Chinese rivals, which already offer small, cheap electric cars, it is crucial that these models reach the market quickly and in large quantities.
A new survey reveals that the arrival of small, more affordable electric cars would accelerate the adoption of zero-emission vehicles in Europe. According to the survey, a quarter (25%) of new car buyers in Spain already intend to buy an electric car next year.
But when given the option of a small electric car for 25,000 euros, the percentage of new car buyers willing to buy a battery electric model increases to 37%. This would be equivalent to the sale in Spain of 103,000 more Electric Vehicles per year, replacing the combustion equivalents.
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