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Will electric cars get cheaper in the UK?

March 7th, 2024

Will electric cars get cheaper in the UK?

The use of electric vehicles (EVs) in the UK is growing rapidly, driven by increasing concerns about environmental sustainability and a rising interest in affordability and accessibility. 

At Drive Fuze, we actively strive to empower potential car subscribers by providing insightful information to navigate the future of electric car ownership. As a leading provider of car subscriptions, we not only offer innovative and sustainable mobility solutions, but we’re also a trusted resource for drivers looking to make informed decisions about their transport needs. 

The current state of electric vehicle pricing

Electric vehicles in the UK are influenced by several factors. 

These include technology development costs, battery prices, and government policies. Historically, these factors have contributed to keeping EV prices higher than their traditional petrol counterparts. However, as technology advances and production scales increase, there's a gradual narrowing of the price gap between EVs and traditional vehicles.

When comparing EVs with traditional petrol or diesel vehicles, EVs are generally associated with a higher upfront cost. But, consumers are beginning to see the long-term benefits of EV ownership, such as lower operating costs and reduced environmental impact, which contribute to the overall value proposition of electric vehicles.

Government incentives play a significant role in facilitating affordable electric cars.

These incentives include grants, tax benefits, and other subsidies aimed at reducing the financial barriers associated with electric vehicle ownership. Governments are looking to promote environmental sustainability, but not only that, there’s influence over the overall cost of ownership - making electric vehicles a more attractive option for consumers.

Factors influencing the future affordability of electric cars

A combination of advancements in battery technology with manufacturing cost reductions offers the most affordable electric cars right now. 

As the cost of lithium-ion batteries continues to decrease, this critical component becomes less of a barrier to lowering EV prices. With ongoing research and development efforts, battery innovations are expected to drive down costs further, making EVs increasingly accessible to a wider consumer base.

The increase in the number of electric vehicles is accompanied by an increase in production volumes. This results in more competitive supply chains. This shift towards mass production leads to economies of scale, effectively reducing the per-unit cost of electric cars. As production efficiencies improve and manufacturing processes become more streamlined, the price competitiveness of EVs relative to traditional vehicles is anticipated to strengthen over time, making electric mobility a more viable and cost-effective option for consumers.

Government policies play a pivotal role in answering the question, “When will electric cars be affordable?” By both investing in charging infrastructure and offering incentives for EV buyers, these key initiatives promote the widespread adoption of electric vehicles. 

When Will Electric Cars Be Affordable in the UK?

Industry experts and studies indicate that EVs could achieve price parity with petrol cars in the UK within the next decade. 

As battery prices drop and energy storage improves, electric cars are becoming more affordable all the time. These advancements are likely to speed up the process of making electric cars cheaper, making them a realistic choice for more drivers perhaps sooner than anticipated.

UK government initiatives aimed at accelerating EV adoption play a crucial role in shaping the affordability of EVs. Measures such as the planned ban on new petrol and diesel cars by 2030 not only signal a significant shift towards sustainable transport but also create market conditions conducive to reducing EV prices. 

Initiatives such as the EV Chargepoint Grant, where the government pays up to 75% (capped at £350) towards the cost of the purchase and installation of a chargebox at home, have been popular. 

With increased demand and further investment in EV technologies spurred by regulatory changes, the path towards affordability becomes clearer, paving the way for widespread adoption of electric vehicles in the UK.

The most affordable electric cars on the market today

Some of the electric vehicles on offer now and coming soon include the new Citroën e-C3. The small crossover is planned to launch towards the end of 2024, with a starting price of around £23,000 and a decent range of 200 miles.

Volkswagen’s ID.2 should also have a starting price of under £25,000 when it goes on sale, together with an even more affordable model costing as little as £17,000.

Dacia is set to launch its Spring electric car in the UK this summer, with a price point of just £18,000. This model has a range of only 143 miles - however, Dacia reports that their data shows most Spring owners in Europe only cover about 50 km per day.

One of the cheapest electric cars you can currently buy is the Citroën Ami - recommended for short urban commutes, as its top speed is limited to 28 mph with an official range of just 46 miles. 

If you’re looking to make the switch to electric without breaking the bank, Drive Fuze recommends prioritising value and performance. Consider factors such as range, charging infrastructure, and available incentives when choosing the right electric car for your needs. 

With our expert guidance and commitment to affordability, Drive Fuze is here to help you find the perfect electric vehicle that fits your budget and lifestyle.

How Drive Fuze is making electric cars more accessible

With Drive Fuze, drivers can enjoy access to a range of EV models without the commitment of long-term ownership. Because servicing, insurance, maintenance, and breakdown cover are included within the subscription service, consumers receive a hassle-free and comprehensive experience.

Additionally, drivers can feel the freedom to change cars whenever it works for them.  If one EV doesn’t feel right, switch to another with zero commitment or financial repercussions. 

With Drive Fuze, you'll have easy access to the newest and most exciting electric models, allowing you to stay ahead of the curve without breaking the bank. With 1 fixed monthly cost, choosing a flexible car subscription is a fantastic financial win, especially considering the rising insurance costs for EVs. 

Concluding thoughts on the affordability of electric cars in the UK 

The future of electric cars in the UK holds promise for increased affordability. 

Affordable electric cars are made possible by tech advancements, economies of scale, and supportive government policies. 

Car subscriptions deliver not just a flexible and convenient driving experience; they represent a practical, eco-conscious lifestyle.

Choosing a Drive Fuze car subscription is a great way for drivers to actively contribute to the UK’s efforts for a sustainable, low-emission future. Consult today with Drive Fuze experts for personalised advice on choosing an affordable electric car.

So - make conscious decisions by staying informed and work towards adopting the future of driving through innovative solutions like car subscriptions.