2023-05-03 09:25:00
Electric cars
Electric cars
Improved technology lowered costs and led companies to target the bottom bracket
The electric vehicle industry at the beginning of the last decade as they took off focused on the upper end of the market, and then they slowly worked their way up to more accessible price points.
The beginning came with Tesla, which was the standard bearer of this approach, as the company’s first model, the Roadster, cost more than $ 100,000. Its full-size cars, the Model 3 and Y, now start in the low-to-mid range at $40,000.
And certainly there were good reasons for taking this path. Margins tend to be higher in the premium segment, at a time when electric car batteries are very expensive. And that doesn’t seem all that unusual for many consumer producers who are initially launching their products to an affordable segment.
But as basic battery technology continues to improve, market dynamics are beginning to shift. In North America and Europe, EV adoption continues to follow a downward trajectory, but there are signs of something different happening elsewhere.
China exemplifies this shift, with EVs being simultaneously adopted at both the upper and lower ends of the market. Even sales of electric cars in the low-income segment now account for 100% of new car sales in China.
Share of electric vehicles in new vehicle sales by sector in China
Electric vehicle sales by segments according to
BYD launched the new Seagull model last month, the latest sign that electric vehicle momentum will continue to build at the lower end of the global auto market, as well as the top.
The new model comes with specifications: 305 kilometers of range, the ability to charge fast, and a starting price of less than $ 11,000. It can accommodate four people.
In an increasingly bottom-up world, EV adoption will also start to emerge in emerging markets such as India, Indonesia and Thailand.
In Thailand, automakers sold regarding 9,600 battery-only cars last year. While deliveries jumped to 14,700 only in the first quarter of this year.
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