The US car market is witnessing an interesting outcome from the growing industry rivalry as it transitions to electric vehicles. It is launching long-range EVs that are now more affordable than the typical gas-powered vehicle.
According to Bloomberg Green research, at least three manufacturers—Telsa, Hyundai-Kia, and General Motors now provide EVs with a range of more than 300 miles (480 kilometers) for a cheaper price than the average new car sold in the US. The most economical is the Hyundai 2024 Ioniq 6, which costs 25% less than the $47,000 national average and has a range of 361 miles.
Electric Vehicles Price Parity Achieved: A New Era for the U.S. Auto Market
The US auto industry has experienced strong competition over the last six months. Also, the pressure is to lower the cost of EVs and attract an emerging customer base. Automakers have begun to realize that consumers are rejecting cars that are not worth up to the sticker price because they are better informed about battery range, EV charging speeds, and charger accessibility.
The Long-Range Electric Vehicles Trend is Booming
The new electric Chevy Equinox may become the standard for affordable long-range EVs. The SUV costs around $42,000 with a 319-mile range before federal tax credits, which can reduce the cost by $7,500. With those incentives, a base model that will be available later this year will cost less than $28,000.
Furthermore, federal incentives can compensate for the price differences between new electric vehicles and gasoline-powered vehicles. However, customers find it challenging to evaluate their options due to complex regulations governing which cars and customers qualify. With car leases, however, that isn’t the case because dealers are eligible for the EV tax credit. Because of this, leasing long-range Hyundai and Tesla electric vehicles can be up to 37% cheaper than leasing comparable gas-powered Toyota and BMW vehicles.
However, the switch to a slow-charging EV would be a significant burden for someone who travels long distances, but it could be a convenience upgrade for a commuter who has an EV charging option at home while they sleep.
Overall, United States drivers are the most picky about range when it comes to electric vehicles. The average range of an EV today is approximately 300 miles, and some versions are available for less money than a typical automobile. Prices will be comparable by 2030, according to the IEA.
