Industry experts agree that affordability remains the primary barrier hindering the growth of electric vehicle (EV) sales. Dave Katarski, COO of Feldman Automotive Group, emphasized that consumer interest in EVs surges when prices align with buyers’ budgets.
“We’re seeing a ton of people flock to them—when they can afford them. EVs, when the price and payment is there, they’re not afraid to buy them. The biggest issue in our industry is affordability,” Katarski stated during the Automotive News Congress in Pontiac, Michigan.
This year, many automakers and related businesses have experienced a slowdown in EV demand, prompting some to conclude that consumers are losing interest in electric vehicles. However, many experts argue that the real issue lies not in demand but in affordability. In Europe, for instance, auto industry specialists have noted persistent interest in EVs, but high prices have led consumers to opt for more affordable plug-in hybrid models instead.
According to J.D. Power, the average transaction price for EV purchases in the United States was approximately $13,000 higher than the typical gasoline-powered vehicle in the first quarter of 2024, with electric vehicles averaging around $58,000. Industry leaders, including Rivian CEO RJ Scaringe, have highlighted the critical need for EVs priced below $50,000.
In response to the growing demand for affordable electric options, several automakers have announced plans to develop EVs with starting prices significantly lower than current market averages. Notably, Tesla’s next-generation EV is anticipated to retail for between $25,000 and $30,000, while Volkswagen has indicated plans to launch a vehicle in Europe priced around €20,000.
