2024-03-15 22:14:52
Electric cars have been the main trend in the automotive industry in recent years. Every new car from major manufacturers is now complete without an electric version, and sometimes this is the only option.
Companies are trying to abandon internal combustion engines as quickly as possible in favor of electric motors, but the market does not seem to be ready for drastic changes. And manufacturers have to adapt.
Tesla has once once more reduced prices for electric vehicles. Ford has reduced the price tag on the Mustang Mach-E, as well as cuts production of F-150 Lightning pickup truck. General Motors is considering resuming production of hybrids, and even Apple has abandoned plans to create an electric car.
At the same time, the US Environmental Protection Agency is considering the possibility of easing the requirements for harmful emissions so that car companies can produce cars with internal combustion engines longer. Against this background, Mercedes-Benz recently announced that it will continue to produce gasoline cars following 2030, although their production was originally supposed to end this decade.
The electric vehicle market is not collapsing, but sales rates are clearly falling short of expectations.
Bloomberg predicted that sales of electric vehicles in the United States would reach 1.7 million in 2023, but at the end of the year, only 1.46 million cars (including plug-in hybrids) were sold. The result is certainly good, but not as good as expected, so manufacturers are beginning to adjust their plans, and not for the better.
Experts CNN There are several reasons that led to this situation. All of them are typical not only for the USA.
Electric cars are too expensive
Let’s EV9
Most electric vehicles currently sold in America do not fall into the budget segment. These are often expensive cars.
Now having $50-60 thousand we choose between Kia [EV9] и Cadillac [Lyriq]. Usually these two cars do not collide with each other.
Tyson Jominy, JD Power Analyst
Initially, electric cars were purely premium cars, then prices began to gradually decrease, but they are still at a high level.
We realized that as you increase production of electric vehicles to 5,000-7,000 units per month and move to a core group of buyers, they are not willing to overpay for electric vehicles. This is an important moment for us.
Jim Farley, head of Ford
Despite the high price, the electric vehicle market is highly limited by body type. Electric vehicles are often crossovers and SUVs. There are far fewer sedans, not to mention hatchbacks, coupes, station wagons and convertibles. That leaves little choice for customers who don’t want a crossover.
At the same time, manufacturers are gradually abandoning inexpensive cars. They either remove them from sale or raise prices. According to forecasts Engine1in the United States soon there will not be a single new car under $20 thousand.
Car prices have increased significantly since Covid. Before the pandemic, 47% of new cars sold in the US cost less than $30,000. Now only 17% of all cars sold cost less than $30 thousand.
For example, the Honda Accord, which in the USA has always been considered a budget sedan, has risen in price by $4 thousand over 5 years. In 2019, it cost from $24 thousand, now the cheapest version will cost $28 thousand, and the hybrid version will cost $33 thousand.
A similar situation occurred with the Honda Civic, the company’s cheapest sedan in the United States. In 2019, it might be bought for $20 thousand; in 2024, prices start at $24 thousand.
There are still not enough chargers for electric vehicles
The United States has a huge network of charging stations for electric vehicles, but it is sorely lacking.
According to the US Department of Energy, by 2030 the country will need 182 thousand fast chargers. Now there are less than 40 thousand of them, with 25% located in one state – California.
Clients who live in a private house with a garage are not heavily dependent on city chargers. They are much more necessary for those who live in an apartment and buy an inexpensive electric car.
To this end, BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz and Stellantis have created a joint company that plans to install 30 thousand charging stations in the US and Canada.
Also last year, all major automakers in the US agreed to switch to the Tesla charging standard, so that all cars have the same connector and so that as many chargers as possible are available to people.
The head of Stellantis (which owns Alfa Romeo, Chrysler, Citroën, Dodge, Jeep, Maserati, Opel, Peugeot, RAM and other brands) believes public charging should be visible before you even buy an electric car.
This means that when you go to the mall, supermarket, restaurant, gym or just park your car, chargers should be waiting for you. You don’t have to look for them.
Carlos Tavares, CEO of Stellantis
So far, charging stations in the US and other countries are far from this level.
Credits and incentives do not apply to all electric vehicles
In the United States, there are many options available to offset the purchase of an electric vehicle. There are tax incentives, low loan rates, and other discounts that can help you save on purchasing an electric vehicle.
But all these rules are very complex, because they often apply not to all electric vehicles, but to specific models. Moreover, sometimes a manufacturer’s cars qualify for benefits, while others do not.
The criteria for benefits are also confusing. In some cases, it is important that the car is made in the USA; in others, the origin of the battery, the price, and sometimes the income of the buyer play a role.
In parallel, it is also difficult for manufacturers to apply for incentives that stimulate sales, because they go through a very difficult verification stage.
In Russia, electric cars are sold in very small quantities
Electric cars are not widely used in Russia. In 2023, 14 thousand cars with an electric motor were sold in Russia. Currently, electric vehicles account for 0.07% of all registered vehicles in Russia.
The reasons for such low sales are exactly the same as in the USA, only even more serious. Officially, only three manufacturers sell electric cars in Russia: Evolute, Moskvich and Voyah.
At the same time, the most popular electric car in sales became Chinese Zeekr 001, which is not officially supplied to Russia. Moreover, three of the five best-selling brands of electric vehicles do not have a representative office in Russia.
All this leads to the fact that the electric vehicle market in Russia is very dependent on parallel imports and gray supplies, which make it very difficult to control prices.
As a result, electric cars in Russia are expensive, both from official dealers and from gray sellers.
What bonuses are available to buyers of electric vehicles in Russia
▪️ Subsidy for the purchase of electric vehicles up to 925 thousand rubles for cars that are assembled in Russia (Moskvich and Evolute)
▪️ No transport tax
▪️ Free parking in many cities, including Moscow
▪️ Free travel on highways -1 “Belarus”, M-3 “Ukraine”, M-4 “Don”, M-11 “Neva”, M-12 (Moscow – Nizhny Novgorod – Kazan) and the Central Ring Road
▪️ Free charging at all public charging stations in Moscow
There are also few chargers in Russia, especially in small towns and on highways. This fact directly affects sales of electric vehicles.
If a person lives in an apartment, then he has no other opportunity to charge the car other than public charging. And if there is no one nearby, then he would rather buy a gasoline car. Therefore, many people buy an electric car if they have a private home or as a second car.
Budget electric cars can save the situation
The problem with the availability of electric vehicles is typical throughout the world, and many manufacturers want to make a budget car, but not everyone can do it.
For example, the Chinese BYD, which is the world leader in the production of electric vehicles, specializes in inexpensive cars. But it has an important advantage: it produces its own batteries for electric vehicles. Most auto companies rely on third-party suppliers.
However, even if there are inexpensive cars, few will still be bought due to the lack of infrastructure, so coordinated work between business and the government is important here.
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iPhones.ru Electric cars are the main trend in the automotive industry in recent years. Every new car from major manufacturers is now complete without an electric version, and sometimes this is the only option. Companies are trying to abandon internal combustion engines as quickly as possible in favor of electric motors, but the market does not seem to be ready for drastic changes. And manufacturers have to adapt. Tesla has once once more reduced…
Ilya Sidorov
@ilyasidorov
News editor and author of articles on iPhones.ru.
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