World Electric Car Prices Are Increasingly Competitive, The Difference With Gasoline Cars Is Only 15 Percent

Polestar 4. (Doc. Polestar)

JAKARTA - Over the years, high prices have become one of the main barriers to the mass adoption of electric vehicles (EVs). However, a recent study shows that EV prices have fallen significantly, reaching their lowest point in history.

According to a report from Jato Dynamics, reported by Carscoops, January 26, EV prices have fallen by 25 percent since 2018 when adjusted to inflation. This brings the price gap closer between EVs and combustion cars (ICE).

In the United States itself, this gap had reached 50 percent in 2021, but with the presence of many new EV models and a decline in Tesla's aggressive prices, this gap has now narrowed to only 15 percent.

However, the situation in Europe and the US is different from that of China. In some European markets, the decline in price gap was not only caused by a significant decline in EV prices, but also a significant increase in ICE prices. In Europe, the price gap between EVs and ICE had increased to 29 percent in 2023 before falling back to 22 percent last year.

However, compared to Chinese consumers, EV buyers in Europe and the US seem unlucky.

For example, Polestar 4 Dual Motor in the US is priced at 62,900 US dollars (around Rp1 billion). This price is relatively cheap compared to the price in the Euro Zone of 69,300 euros or equivalent to Rp1.1 billion. However, the same car is sold at a price of only 399,000 yuan in China or only around Rp890 million.

Price comparisons among these regions are becoming more difficult as not all EV models are available in each market. However, data shows that UK consumers, for example, have to pay more than double for the same car compared to consumers in China, although produced at the same plant.