2023-08-05 10:01:00
Fifteen years following the marketing of Tesla’s first roadster, which sold for around 100,000 euros at the time, it is difficult to say that the bet on the democratization of electric cars has been successful. Today, between certain battery-powered models and their combustion counterpart, there is a gap of sometimes more than 10,000 euros. Take, for example, the Peugeot 208. The electric (36,150) is now 78% more expensive than the entry-level thermal (20,250 €). At Citroën, the electric C4 (€39,950) sells for 43% more than the thermal entry-level (€27,900). You can buy two Fiat 500s (€15,950 each) with the price to pay for a single electric Fiat 500 (€33,790 even if one version is sold for €29,290).
Citroën, Renault, Volkswagen, Tesla: the race for electric cars under 25,000 euros is on
Since the prices of electric cars are therefore far from having approached the downhill turn. Worse, electric cars, like their thermal counterparts, suffered the brunt of the inflationary crisis precipitated by the outbreak of the conflict in Ukraine. The DH tried the comparison, and evaluated the price difference between the same electric model sold in May 2022 and August 2023. The result is relentless: in just over a year, the cars have seen their prices increase by 7.7%. “Energy inflation leads to a considerable rise in production costs,” Karl Schuybroek, spokesman for Renault Belgium, recently confirmed to us. The prices of steel and electronic components, for example, have risen considerably. And to this are added the prices linked to transport which have also exploded with the rise in fuel prices.”
Of the fifty models analyzed by us, three models have kept the same price as in May 2022: the Aiways U5, the Honda E and the Renault Twingo. And only two have seen their prices drop: the Tesla Model3 (-15%) and Y (-18%). A reduction granted by Elon Musk to face Chinese competition, and in particular that of BYD, whose ambition is, precisely, to compete with the American firm.
By removing the Tesla exception, the price of electric cars would therefore have risen by 9.6% in just over a year, making such vehicles a little more unaffordable for small wallets, despite higher inflation, while, every month, decisions are made to seal the fate of the thermal car.
According to our comparison, some models have suffered an insane price increase. The Seres 3 thus increased by 21.2%, the Kia Soul climbed by 23.8% and the Fiat 500 by 17.2%.
The price of electric cars in August 2023 ©IPM Graphics
What should curb the enthusiasm for electric? The figures communicated by the federation of the mobility sector, Traxio, seem to prove the contrary. It must be said that the measures adopted by the federal government, which will only authorize a 100% tax deduction for cars that no longer emit polluting gases into the atmosphere from 2026, are forcing companies to take the turn electromobility. “During the first six months of 2023, the registrations of new and used cars reveal some highlights regarding the Belgian market, comments Filip Rylant. It is therefore striking that the Belgian new market is dominated by companies/leasing: 65% of new cars are registered in the name of companies subject to VAT and only 35% in the name of individuals. On the other hand, the second-hand market is 89% in the hands of individuals.”
Gasoline, hybrid, electric, …: faced with uncertainty, Belgians are delaying the purchase of a new car and increasing the age of the car fleet
On the specific market of new electric cars, the difference would be even more divisive: one out of 10 newly registered models is registered by an individual, the rest by a company. And the main cause mentioned by individuals to justify their lack of interest in electric vehicles remains the purchase price of the vehicle, considered too high. While the various governments want to speed up the greening of the vehicle fleet, they risk facing a dead end when, unable to buy an electric car, individuals will have to get rid of their thermal cars deemed too polluting.
According to the latest figures published by Febiac, the slow erosion of the thermal seems to be accelerating. While the electric car (full electric or hybrid) represented only 14.3% of the market share in 2020, it concerned 43% of sales in the first six months of 2023. According to forecasts, it is highly likely that by the end of the year, more electric cars are being sold than combustion models.
New and used car market by buyer type and region ©IPM Graphics
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