EVs fraud just unveiled: brands are willing to “give them away” to compensate and survive by D. García 04/14/2024 in Mobility EVs Goodbye to gasoline, hybrid and diesel
EVs fraud just unveiled: brands are willing to “give them away” to compensate and survive
by D. García
in Mobility
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Despite the promising advantages offered by EVs, their high cost has emerged as a significant challenge that has notably impacted their sales figures. Although these cars have undeniable benefits, such as reduced emissions and energy efficiency, their higher price compared to internal combustion vehicles has generated a negative reaction among consumers.
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The initial investment required to purchase an electric car, which includes the cost of advanced battery technology, has contributed to their position as the most expensive vehicles on the market today. This financial factor has created a number of barriers to entry for many potential buyers.
Another major shortcoming is the lack of fast charging stations and the need for longer recharging times compared to fossil fuel refueling. These aspects trigger resistance from consumers who value practicality and convenience in their daily driving experience.
Technological advances and investments in research and development are contributing to the gradual decrease in production costs, which could make electric vehicles more accessible in the future, something that is already happening, but not for the same reasons, but because they are geared to low demand.
No more alternatives: this was the high cost reduction
The significant decline in car sales of prominent brands such as Cupra, Kaia and even Tesla has had a palpable impact on the automotive market. Affordability has emerged as an insurmountable obstacle for a considerable portion of the population, despite the renowned quality and technology of these manufacturers.
The high price of these brands’ vehicles has created an economic barrier that has excluded many consumers, even those who might consider long-term savings. Although the promise of energy efficiency and low emissions is attractive, the economic reality for potential buyers has led to a decline in demand.
This situation is affecting the market position of these brands, as you can imagine. The extraordinary economic barrier that has hindered the purchase of thousands of vehicles has caused a surprising turnaround in the strategy of the renowned brands.
Faced with the need to reactivate sales, these companies have opted for a drastic measure: to significantly reduce the prices of their high-end vehicles, reaching in some cases decreases of up to dollars. If we take into consideration the impact of Chinese brands, we can raise concerns.
Although risky in terms of profit margins, this strategy aims to stimulate demand. This measure is not without its challenges, as brands must balance price reductions with the need to maintain quality standards and continue to invest in innovation, what is most needed now.
A constant battle between brands: Tesla leads the way
Although the demand for electric cars is relatively low, it is very interesting to note that the majority of buyers who are inclined towards this option prefer Tesla vehicles. This pronounced preference has led other brands, such as Citroën or CUPRA, to take a back seat in terms of sales, leaving them out of competition.
In fact, the gap between Tesla’s electric car sales and these brands is considerable, with figures revealing that for every eight Tesla cars sold, barely one Citroën or CUPRA car is sold. The reason behind this trend may be due to several factors, such as Tesla’s established reputation for advanced technology and performance.
The network of charging stations for EVs is also insufficient, something that consumer associations have historically complained about. However, we don’t know how far the situation might go before we have to provide space for hydrogen vehicles as well. Nevertheless, we have reason to be concerned about how our industry may develop in the near future, for the planet and for our economy.