Industry News: Average Transactions Between EV and ICE Vehicles Reveals Price Parity

[Anthony Fongaro]

Automakers are trying to achieve price parity between EV and ICE vehicles. This is a key objective so EVs become more attainable to buy. Price parity would help consumers who are interested in EVs. Kelly Blue Book's (KBB) November average transaction price data for new vehicles shows that we are moving slightly in the right direction. In 2024, certain EVs will lose the federal tax credit.

The industry average transaction price (ATP) for every type of vehicle was $48,247. The new EV average transaction price (ATP) was $52,345, or 8.5% more expensive. November had the highest incentive for EVs at 8.9% of the average transaction price (ATP). Last year, EV incentives were less than 2% of the ATP. Kelly Blue Book (KBB) has not revealed all vehicles' average transaction price (ATP). Hybrids/alternative-powered cars had an average transaction price of $49,680.

The Director of Strategic Planning at Cox Automotive, Stephanie Valdez-Streaty told Inside EVs: "In recent months, price parity between EVs and ICE has almost seemed possible. It is a complicated measure with plenty of variables, but newer products and higher discounts have brought down average EV prices, even before potential tax incentives. A year ago, the EV premium was more than 30%. Today, it's less than 10%."

View full article

[surreal1272]

The problem with this "formula" is that the parity involved is still to high for most buyers and sales figures back this up. I get parity but how about they focus on lowering the baseline for said pricing first?

[smk4565]

Yeah the $48,000 average is still really high.  EV tax credit will help in 2024, but there still need to be cheaper EV's and not just $80,000 pick ups and $100,000 sedans.  And more options are coming, I saw Hyundai is working on a $22,000 Ioniq 2, we know Tesla is working on a low priced car.  Once you have EV's with MSRP's under $30k that aren't the size of Mini from the 60s then I think the EV sales will take off.