Electric cars to be cheaper by 2024

According to a report by market analysis company Rho Motion, global electric and PHEV (plug-in hybrid electric vehicle) sales reached 1.1 million units in the first month of 2024, a 26% decrease compared to December 2023. This indicates a slowdown in the development of the electric vehicle segment. The decline can be attributed to reduced subsidies and stricter regulations in Germany and France, as well as weak consumer demand from the Chinese market before the Lunar New Year.

The emergence of affordable Chinese electric cars has caused concerns among Western car manufacturers. BYD and other Chinese manufacturers of cheap electric cars are accelerating the export of cars to Europe and other regions. Meanwhile, American car manufacturers are worried that these companies will produce cars in Mexico and then penetrate the US market.

In the current context, major car manufacturers in the US and Europe are striving to reduce the cost of electric car production to the lowest level, in order to introduce products with more competitive pricing to the market.

Some European car manufacturers such as Stellantis and Renault are targeting the affordable electric car segment, aiming to achieve revenue goals based on the number of cars sold rather than profit margins. On the other hand, General Motors and Ford are exploring the possibility of collaborating with other brands to reduce the cost of product development.

Overall, all electric car manufacturers are striving to bring electric car prices in line with traditional petrol cars. Renault CEO Luca de Meo stated that reducing prices will be easier for small electric car models, as it only requires reducing battery size. It is known that the battery accounts for about 40% of the total cost of an electric car. Ford is also evaluating its battery strategy and has established a dedicated team to design a cheaper electric car that can compete with BYD.

Thái Sơn (Tuoitrethudo)