How much do electric cars cost? In Europe 31.7% more than thermal

In Italy, the difference is 42%. The average price of a battery-powered car on the old continent is 42,500 euros, explains a study conducted by Jato Dynamics. Manufacturers are now preparing to do without the more popular incentives for price cars

Alessandro Conti


– Milano

In Europe, an electric car costs on average 31.7% more than a thermal car. It is clear that battery-powered cars have higher prices than thermal ones, and that public incentives mitigate the scale of private disbursements are just as peaceful. On the other hand, the development in recent years’ price lists for zero-emission cars and the differences in the different areas of the world are less clear. In this regard, Jato Dynamics, a British car consulting firm, has developed a research with an interesting name that can be translated as follows: Electric cars, the price challenge. The study takes into account the dynamics of consumer costs from 2011 to 2021 in Europe, the United States and China. On the old continent, research analyzes in detail the trend in Germany, France, the United Kingdom, Norway and the Netherlands.

electric cars, how prices have changed in 10 years

The average price of an electric car in Europe went from € 33,292 in 2011 to € 42,568 in 2021, an increase of 28%. In the US 10 years ago, an electric car cost an average of 26,200 euros, this year 36,200 euros, corresponding to an increase of 38%. The trend of the curve in China is quite different, with the average selling price of 41,800 euros in 2011 reaching 22,100 euros in 2021, or a decrease of 47%. The reason for the decline, Jato’s study explains, also lies in the fact that the Chinese industry has focused on popular cars with affordable prices for a wider audience thanks to the adaptation of thermal motors for battery-powered vehicles. It is clear that public support plays an important role. The buying incentives in the Asian country, which began in 2010, continue now and until the end of 2022, although they are greatly reduced.

electrical-thermal comparison

Even more interesting is the comparison between the average price in 2021 recorded between cars with internal combustion engines and battery-powered vehicles in the three regions considered. The current costs recorded by Jato Dynamics are for the period January-May. In Europe, the cost of a thermal 32,318 euros, for an electric one of 42,568 euros, is a difference of 31.7%. In the US, 24,866 euros are spent on a thermal, 36,139 euros for a battery-powered car, 45.3% of the delta. Also in this case, the situation is different in China, where motorists spent 23,703 euros for a thermal car, while for an electric car spent 22,072 euros, or 6.9% less, with peaks down to 6,700 euros for a city car battery and 15 thousand euros for a segment B, a so-called small car.

In Italy + 42%

If the comparison between continents is interesting, the country-by-country study photographs the price difference in Europe between electric cars and thermal cars without stating average figures: the period taken into account is always from January to May 2021. Well in Italy a car a battery costs 42% compared to a thermal; in France and Spain 45%; in Germany 8%; in the United Kingdom, 51%; in Belgium 92%; in Sweden 78%.

the case of norway

The only exception on the old continent is Norway, where you spend on average 15% less than a thermal to buy an electric: the average price of an electric car is 44,500 euros (but 10 years ago it was 30,500 euros), of a fuel car is 53 thousand euros. One must keep in mind that the country’s GDP per. per capita is almost 58,200 euros (2020) against a European average of 28,600 euros (2019). Norway boasts another peculiarity, namely the policy of public support for the purchase of cars on tap. Instead of incentives that result in reductions in the purchase price of the vehicle, the Scandinavian country has focused on the tax rebate and on a robust public investment in charging facilities. Currently, those who buy an electric, among other benefits, do not pay purchase tax, VAT and benefit from a reduction of between 75 and 90% of the stamp duty.

more profitability

In general, if the incentive policy has greatly affected the sale of electric cars around the world, more manufacturers are clearly taking steps to reduce production costs and increase profitability. Jato provides an example of this trend in what Tesla and the Volkswagen Group, the two main players in the production of battery-powered vehicles, are doing. In general, Jato concludes its report with this consideration: “There is an urgent need for the automotive industry to focus on affordable electrical models that reflect consumer demand.” All this without counting the arrival in Europe of several Chinese manufacturers like Geely, MG, Nio and Xpeng.

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