Keystone-SDA
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June 27, 2024 – 10:01
(Keystone-ATS) Many models of electric cars costing less than 25,000 euros (around 23,972 francs) are expected to arrive on the market in the coming months, making this technology more affordable for households.
Hyundai is due to present its future small electric car, the Inster, at the Busan show in Korea on Thursday. Between the end of 2024 and the year 2025, the Renault 5, Citroën C3, Fiat Panda or Volkswagen ID.2 will slowly open the doors of electric to the middle classes.
With possible purchase bonuses and scrappage bonuses, these vehicles fall below the 20,000 euros mark, or from 99 euros per month for long-term rental.
They still offer limited ranges, around 300 kilometers, but better than those of the first low-end electric vehicles, such as the Dacia Spring.
“We are impatiently awaiting segment B vehicles, small cars that meet the needs of the French, and at the right price,” comments Julien Billon, general manager of AAA Data.
While electric sales have slowed in certain European countries, these new models could give them a boost. Especially since in use, if you charge them at home, they make the kilometer much cheaper than with a petrol car.
“We are going to make people who didn’t think about it take the electric reflex,” said Thierry Koskas, the boss of Citroën, during the presentation in May of its C3, which will be priced from 23,300 euros.
To achieve these prices while remaining profitable, manufacturers are taking advantage of the drop in battery prices. They are increasingly using LFP (lithium, iron and phosphate) technology, a cheaper, more durable but less powerful alternative to the most widely used NMC (nickel-manganese-cobalt) batteries.
Furthermore, Citroën, Dacia and Fiat “all base their vehicles on platforms (chassis) developed for emerging markets such as India and Latin America, designed more economically, with cheaper components and raw materials”, says Felipe Muñoz, analyst for Jato Dynamics.
“There are far fewer parts” and “the range is simple,” sums up Thierry Koskas. Furthermore, these economical models are manufactured in Eastern Europe, like their petrol equivalents.
In addition, these small cars are equipped in the basic version with small battery packs (40 kWh for the Renault 5, 44 for the Citroën C3).
Chinese manufacturers still have to position themselves in the entry-level electric segment in Europe, after having multiplied SUV models, and while the European Commission has announced high taxes on their vehicles.
Stellantis plans to launch the import of the small T03, produced by its partner LeapMotor, in September, while BYD has not confirmed its plans for a possible import of its small Seagull.
Tesla also indicated that its inexpensive vehicle project, nicknamed Model 2, would be accelerated.
Ambitious goals
Manufacturers first embarked on the electric shift with expensive SUVs and sedans with comfortable margins, like Tesla, which started with a convertible then a high-end sedan.
The electric market share thus exploded to reach 14.6% for the whole of 2023 (17% in France), before running out of steam at the start of 2024.
But the 2035 deadline is approaching, with the ban on sales of new gasoline cars, and pressure is increasing on European manufacturers to expand their ranges.
To meet emissions standards, they will have to sell on average 21% of electric cars over the year in Europe, according to calculations by the Transport & Environment (T&E) think tank, or up to 25% according to Citroën.
“Until 2025, they will seek to maximize profits by promoting combustion engines and delaying investments in electric vehicle production,” T&E warned in a report.
This transition is only just beginning, also underlines the International Energy Agency in its annual report on the electrification of the automobile. Only 25% of the more than 400 electric vehicles announced between 2024 and 2028 are compact models or intermediate segments.
After a few months, these cars will also arrive on the second-hand market, which represents nearly three-quarters of automobile purchases.
