As the global car market adapts to the ceaseless growth of technology, electric vehicles (EVs) have become an inevitable part of this revolutionary ride. However, recent trends show a substantial slowdown in the EV sales, prompting a decrease in market prices, which could mean some drivers could purchase an EV for as little as $10,000 this year.
Over the past decade, electric vehicles have made significant strides in popularity. Initially considered a niche market, EVs were a luxury item, and prospective buyers were few and far between. Yet, their consistent rise, coupled with the inevitable decline of fossil fuels, has seen them transform into a widespread phenomenon. Still, as the sales graph starts to curve downward, it has created an unexpected opportunity for buyers to get hold of an EV at an unbelievably affordable price.
The reasons for the slowdown in sales vary. The sector did enjoy a surge during the first few months of the COVID-19 pandemic, partly due to supply chain disruption for conventional vehicles and the fact that, for a while, EVs were pretty much the only new cars available. However, the sales started dipping as the manufacturing of traditional cars resumed. Moreover, potential EV buyers were also affected by the economic uncertainty brought about by the pandemic, leading to reluctance to spend money on a new vehicle.
Despite the slump, EV manufacturers are not deterred. Instead, they are taking the slowdown route as an opportunity to adjust the prices of their electric vehicles to cater to a wider market segment. That could mean EVs, including all the maintenance and running costs considered, becoming significantly less expensive.
The current slowdown in the electric vehicle market, coupled with an increasing trend towards mass production, has already started pushing the prices down. Several automobile companies have announced plans to populate the roads with more affordable electric cars. For instance, General Motors has proclaimed their intention to release 30 new electric vehicles by 2025, many of them expected to bear reasonable price tags. Similarly, Tesla, a behemoth in the EV industry, is also working on making a $25,000 EV a reality.
Many dealerships are now selling used electric vehicles at significantly reduced prices. The low-mileage used electric cars are an exceptional deal for buyers who are looking to make an entry into the world of EVs. Some used Nissan Leafs and Chevrolet Bolts, for example, have been reported to have price tags as low as $10,000.
Incentives also play a major part in offering EVs at lower prices. Through the federal electric vehicle tax credit, customers can be eligible for a credit of $7,500. The amount of the credit depends on the capacity of the battery used to power the vehicle. Furthermore, several states offer additional incentives, exemptions from emissions testing, and utility rate reductions, which can help make owning an EV an enticing offer.
Despite the recent slowdown in sales and the subsequent drop in prices, experts predict that the popularity of electric vehicles will bounce back post-pandemic. This is attributed to the several benefits of EVs such as low operating costs, decreased emissions, and improved performance.
Therefore, this slowdown in sales could be a temporary situation that could lead to the democratization of electric vehicles. For potential buyers, this year could be the perfect time to consider making a shift towards a more sustainable and affordable mode of transportation; an EV that could cost them as little as $10,000.