Electric cars will be affordable for everyone as soon as next year, so it is better to postpone buying a car now
Purchasing a new vehicle with a combustion engine may no longer be advantageous. Legislation setting new requirements for car manufacturers and the expected decrease in battery prices will, as soon as next year, ensure significantly lower prices for electric vehicles. Buying a vehicle with a combustion engine could therefore prove to be disadvantageous.
Electric vehicles are becoming an increasingly important element of the ecological transformation towards a sustainable and climate-neutral society. However, they are still financially inaccessible to many consumers compared to vehicles with combustion engines. This situation could soon change - new regulations are expected to significantly reduce electric vehicle prices starting next year, making them an accessible choice for regular households.
A significant example of affordable electric vehicles is the current situation in China, where electromobility is experiencing rapid growth. On that market, almost two-thirds of electric vehicles are already cheaper than traditional fossil fuel cars. This condition results from fierce competition among EV manufacturers aggressively pushing for price reductions, combined with increasing government support. According to Bloomberg New Energy Finance, electric vehicles have gained a strong foothold there, partly due to reduced production costs and a strategy to phase out combustion engine vehicles.
A similar situation could occur in the European market as early as 2025 when stricter European Union emission standards come into effect. These standards will incentivize automakers to increase electric vehicle sales to avoid fines for exceeding emission limits. Automakers will thus be under pressure to increase sales of more eco-friendly cars and will have to offer electric vehicles that better match the demand of regular consumers.
Peter de Haan, head of the energy and climate section at EBP, explains that the automotive industry will be forced to significantly expand its EV offerings. This will also be reflected in prices, which should become much more competitive compared to traditional vehicles. “Car manufacturers have so far had little incentive to meet the existing emissions limits, but now they will face stricter penalties if they do not rapidly expand their EV fleets,” Haan told Neue Züricher Zeitung.
In addition to legislative requirements, reducing battery costs, which are among the most expensive components of electric vehicles, will also play a significant role in the decline of electric vehicle prices. While a standard battery with a capacity of 70 kWh cost almost 100,000 euros in 2008, today these costs are significantly lower due to technological advances and higher production. According to the Bloomberg New Energy Finance publication mentioned, a similar battery currently costs approximately 3,700 euros. This trend will continue, also thanks to competition among battery manufacturers who are optimizing costs and technologies.
Moreover, the operating costs of electric vehicles are lower than those of comparable cars with combustion engines. Data from EBP showed that over eight years of ownership, an electric vehicle owner can save more than 10,000 Swiss francs (about 268,000 Czech crowns) compared to a conventional vehicle. Additionally, electric vehicles exhibit lower maintenance requirements, which brings further savings.
Considering all these factors, it might be wise to postpone vehicle purchasing until next year, when more affordable electric models are expected to be introduced to the market. If the forecasts come true and electric vehicles indeed gain a price advantage, buying a deferred vehicle could be a strategic decision. The year 2025 is likely to showcase electric vehicles that will not only be affordable but also offer an environmentally beneficial and cost-effective solution for the general public.
