As electric cars gain popularity, their purchase prices are approaching those of ICE vehicles, particularly in Europe, where conventional cars with gasoline engines are increasingly penalized. In some cases, electric vehicles are significantly less expensive than their ICE counterparts.
In Norway, for example, a Porsche Taycan costs roughly half the price of a Panamera. In France, a BMW i4 M50 costs 35% less than a less powerful M3 or M4.
However, at the lower end of the market, EVs are still significantly more expensive than equivalent ICE vehicles. A Volkswagen ID.3 costs at least €38,000 in Germany, whereas a well-equipped Golf cost €8,000 less.
So, why are entry-level EVs still more expensive than their combustion-engine counterparts? Dave Gardner, Honda’s Vice President of Business and Sales for America, was recently questioned on the subject and stated:
“We [Honda] don’t really believe that the current lithium-ion technology is the long-term solution. Solid-State batteries are going to be the game changer for us.”
Dave Gardner believes solid-state batteries will enable entry-level EVs to be priced “in the neighborhood of what a nice [ICE] vehicle costs.”
He did, however, admit that solid-state batteries are still a way off and will not be used on the brand’s upcoming Prologue crossover.
Having said that, Honda has stated its commitment to the development of solid-state batteries and recently announced a $310 million investment in this area.
Honda’s first mass-production EV, the E city car, has not been a commercial success. Despite a target of around 10,000 units, only 3,752 units were sold in Europe last year.
Although the Honda E received a lot of praise for its retro-inspired funky design and tech-laden interior, many people were disappointed with its short range of around 210 km and high price of €30k+.
Honda will undoubtedly hope that its upcoming Prologue electric crossover sells better, even if it costs more than a similarly equipped CRV.
To read our blog on “Tires will degrade more quickly in EVs than ICE cars,” click here