JAKARTA – A new history has just been created in the British automotive world. For the first time, the average price of a new electric car (EV) is officially below the price of a gasoline-powered car. This phenomenon marks the end of an era in which “expensive initial prices” are the main obstacle for consumers to switch to environmentally friendly technology.
This price is based on the latest data from the Autotrader Group, the largest car buying and selling platform in the UK, quoted from Autoweek, Saturday, April 18, this price shift is a strong signal that the map of the industry’s competition is changing radically.
The analysis shows that the average price of a new electric car registered is now at around £42,620 (equivalent to Rp988 million). This figure is surprisingly lower than the average of comparable gasoline engine models which are priced at £43,405 (equivalent to Rp1 billion).
This condition is very different from the situation in the United States, where the price tag on a new electric car is usually still 15 percent more expensive than an internal combustion engine (Internal Combustion Engine or ICE) vehicle.
Discount War and the Entry of New Players
Bex Kennett, director of performance at Autotrader, explained that the electric car market is now very competitive. There are several key factors that drive this price drop from the UK government just rolling out a new EV grant last year that cut the price by around £3,750 for certain models. Then, automotive manufacturers are under great pressure to meet zero emission vehicle targets, so they are making aggressive discounts to boost sales volumes. Third, the presence of low-cost electric models from Chinese manufacturers forces established brands to participate in lowering prices to remain competitive.
For consumers, this initial price change complements the existing long-term benefits. Although the operating and maintenance costs of EVs are traditionally cheaper with fuel costs less than half and maintenance costs only one-third of gasoline cars, this purchase price advantage is the main trigger for new interest.
The results are clearly visible in market data. Battery-based electric vehicles accounted for 22 percent of total new car sales in the first quarter of this year. This surge was also driven by rising fuel prices (BBM) which made consumers more focused on long-term energy efficiency.
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