A study has found that electric vehicles with a price tag of 2025 Euros or less can be produced profitably in Europe by 25.000. This research raises an important debate about the accessibility of electric vehicles.
Environmental group Transport & Environment, which conducted the research, says cost is one of the main obstacles to the rapid adoption of electric vehicles. The European Union's decision to only allow the sale of zero-emission vehicles after 2035 could accelerate the wider adoption of electric vehicles.
“Small electric vehicles under €25.000 will be a game changer for public adoption of electric vehicles,” says Julia Poliscanova, Senior Director of Vehicles and E-mobility Supply Chain at Transport & Environment. Making electric vehicles at this price point accessible to more buyers could contribute to the growth of the electric vehicle market and help European manufacturers compete against Chinese rivals.
How logical is it to produce cheap electric cars?
Producing cheap electric cars presents some challenges for automakers. These vehicles tend to have smaller batteries than larger, more expensive electric vehicles. This may lead to some limitations in terms of range and performance. Additionally, cheap electric cars may include less advanced features and lower quality materials.
However, it is also clear that cheap electric cars can present a significant opportunity for wider adoption of electric vehicles. This could make vehicles more accessible, especially for low-income families and young drivers.