Published date: July 10, 2024
A recent study by Cox Automotive revealed that the price gap between gas cars and EVs has narrowed significantly—from $17,500 in 2022 to just $5,000 in 2024.
Could EVs achieve price parity with ICE cars by 2026? Let’s take a closer look at the economic principles that will shape the future of electric vehicles.
The U.S. currently produces and sells between 13-16 million new cars annually, with EVs comprising just 8-10% of this total.
Due to the power of economies of scale, as EV production scales up, the cost per unit should continue to decrease. Imagine what happens when major manufacturers like GM, Ford, and Toyota start producing 200k, 500k or even 1 million EVs each year?
As EV production ramps up and the demand for gas car parts decreases, the cost of gas cars will rise while EV prices will drop. This shift will make EVs even more attractive to consumers.
We could soon reach a tipping point where the early majority begins to adopt EVs en masse.
The rapid closing of the price gap between gas cars and electric vehicles signals a positive future for EV adoption. With economies of scale driving down costs, enabling longer ranges, and increased dealership support, the shift to electric might be closer than it seems.
As we look to the future, it is clear that the time to embrace EVs at dealerships has come. At Lectrium, we are ready to be your EV-partner of choice, and make sure that auto dealers come out of this transition a champion.
If you are a dealership interested in selling more EVs and learning more about our offerings, book a 20-min demo with us.
Subscribe to our EV newsletter for dealers
Join 9,000+ other automotive professionals diving into EVs and streamlining their EV sales processes!
Follow Lectrium‘s latest news on LinkedIn
2024 Lectrium. All Rights Reserved