Electric car average price to fall below hybrids in 2025
The global average price for fully electric vehicles (EVs) is projected to fall below that of hybrid vehicles (HVs) in 2025, reaching approximately $37,000. Declining battery costs and increased production scale from Chinese manufacturers are key drivers.
The global average price for fully electric vehicles (EVs) is set to drop below the average price of hybrid vehicles (HVs) for the first time in 2025. This projection comes from U.S. research firm Mobility Global, citing falling component costs and the impact of large-scale production by Chinese automakers expanding into emerging markets.
In 2025, the average suggested retail price for EVs is expected to be around $37,000, a decrease of 9% from 2020 levels. Conversely, the average price for HVs is projected to rise to approximately $39,000, a 16% increase from 2020. A significant factor in the decline of EV prices is the falling cost of lithium-ion batteries.
Chinese car manufacturers are playing a crucial role in this price shift. Their massive production volumes lead to economies of scale, reducing manufacturing costs. This has enabled a surge in Chinese EV exports, particularly to developing nations.
China's automotive export sector has seen substantial growth. In 2023, the country exported 8.32 million vehicles, a year-on-year increase of 29.9%, with a total export value of $142.5 billion. This trend indicates a continued expansion of electric vehicles within the global automotive market.