Electric power Car Makers Slash Prices to Draw in Customers

Global automakers are slashing the prices of electrical cars to attract extra customers to a segment even so plagued by a reputation for slack horsepower and inconvenience.

GM's new Bolt electric-powered car unveiled early this week is priced at only US$31,995 or $5,000 significantly less than the previous version. When it hits Korean showrooms in the next half of this year, the price tag will fall even more to less than W30 million because of government subsidies.

Tesla launched its popular designs at lower-than-expected prices found in Korea, even while Renault Samsung and Hyundai are also slashing rates of their EVs.

A main reason for the purchase price cuts may be the declining cost of rechargeable batteries, but competition can be getting fiercer among automakers in the burgeoning EV industry. At this specific rate, EV prices should in the near future reach the same level as gasoline and diesel autos.

Renault Samsung started selling the Zoe EV in Korea late this past year with a cost tag of W39.95-43.95 million (US$1=W1,108). A staffer said, "In the event that you put central and regional federal government subsidies, the purchase price falls to around W29 million."

Hyundai's latest Ioniq 5 costs W50 million, but that falls to significantly less than W40 million with the subsidies.

Tesla slashed the price of its popular Version 3 Long Spectrum by W4.8 million to W59.99 million going to the government cutoff stage of significantly less than W60 million to qualify for subsidies.

CEO Elon Musk said in September this past year that he plans to roll out within three years an EV for $25,000. The cars are highly likely to be created in China for export.

EV makers also like to improve their sales volume by offering less expensive cars. Kim Pil-soo at Daelim University explained, "So as to break even, EV revenue must reach at least 100,000 automobiles, and that will be difficult to attain with expensive styles costing over W100 million. But with mass-market models costing significantly less than W30 million you have a far greater chance."

Environmental regulations are also being strengthened all over the world, which has managed to get necessary for automakers to create electric cars to stay afloat. This past year, global EV sales still stood of them costing only 3.12 million, nonetheless they are anticipated to surpass 4 million this season.