In 2024, France saw a 3.2% decline in electric vehicle sales, largely due to high prices and reduced ecological bonuses for Chinese models. Despite electric cars being more cost-effective over time, they remain perceived as expensive, with an average price of 42,930 euros. Newer models like the Renault 5 E-Tech show promise for affordability, while Chinese electric cars maintain competitive pricing. The gap between electric and thermal vehicles is narrowing, indicating potential future price reductions.
In 2024, France experienced a 3.2% drop in electric vehicle (EV) sales, primarily attributed to the persistently high prices. The reduction or complete elimination of ecological bonuses for Chinese models has further compounded this issue. As a result, the cost remains a significant concern for drivers.
Are Electric Cars Really More Expensive?
Many motorists still perceive electric vehicles as prohibitively expensive, despite their superior cost-effectiveness when compared to gasoline or diesel options over time. A recent study highlights this hesitation among the French populace to fully embrace electric cars. So, is the perception of electric cars being out of reach valid? The reality is more complex, as outlined by Automobile Propre.
According to a study by AAA Data, the average price of an electric vehicle in 2024 stands at 42,930 euros, excluding discounts and ecological bonuses. This makes EVs the priciest category of vehicles, surpassing hybrids, which average 41,043 euros, and diesel models at 39,761 euros. In stark contrast, gasoline vehicles are currently priced at an average of 26,774 euros.
Despite the emergence of more affordable electric models like the Renault 5 E-Tech and Citroën ë-C3, the price of electric vehicles has actually seen a 3.6% increase in 2024. However, caution is required when interpreting these figures, as they encompass a broad market spectrum that includes both compact cars and luxury SUVs. There is a notable distinction within this range. As more budget-friendly electric vehicles enter the market, we can expect a gradual reduction in prices in the coming years, which has already begun.
For instance, consider the Renault Zoé, which offers a range of 400 kilometers but starts at 35,100 euros, while the newer R5 is priced at 33,490 euros. The R5 not only boasts better equipment but also faster charging capabilities, making it approximately 5,000 euros cheaper for comparable features. Furthermore, more electric city cars from manufacturers like Volkswagen are set to launch soon, likely contributing to a decrease in average prices.
The Advantage of Chinese Electric Cars
While the disparity between thermal and electric vehicles remains substantial in the city car segment, it is narrowing for larger models, averaging around 15% for compacts and SUVs. For instance, the Peugeot e-3008 is priced lower than its plug-in hybrid counterpart, thanks to a minimum bonus of 2,000 euros. Although some industry leaders, including Renault’s CEO, anticipate a 40% rise in production costs by 2030, this view requires further examination.
Renault, for example, aims to cut development and production costs for the upcoming Mégane E-Tech by the same percentage compared to its current version. Additionally, the competitive landscape among manufacturers is expected to heat up, leading to lower prices. This trend is partly driven by the adoption of LFP (lithium-iron-phosphate) batteries, which are cheaper than NMC (nickel-manganese-cobalt) alternatives. Notably, the gap between thermal and electric vehicles continues to shrink, decreasing from 29% in 2023 to 22% in 2024.
Ultimately, Chinese electric cars hold a competitive edge, as they are considerably cheaper in their home market, selling at around 1% less than their thermal counterparts. Their pricing remains attractive in Europe as well, largely due to simpler designs. This has even intrigued a team of Japanese engineers who recently dissected a BYD Atto 3 to uncover the secrets behind its remarkably low cost.