Auto Service World
News   March 6, 2024   by Adam Malik

Will BEVs ever be affordable enough for most?

Barring some significant change, one industry observer doesn’t believe battery electric vehicles will ever be affordable enough for most Canadians to buy brand new.

Speaking at the Canadian Black Book Talk Auto conference near Toronto in the fall, Guido Vildozo, senior manager of light vehicle sales forecasting for the Americas at S&P Global, warned that if BEVs can’t get under a certain price tag, many Canadians won’t be able to buy one from the dealer.

“Battery electric vehicles will not be affordable,” he said.

He said the lowest potential price point that he sees a BEV getting to is $25,000. That’s not the reality today. But at some point in the future, that’s where he sees the bottom end of the price spectrum ending up.

“If that’s the case, then we wouldn’t be able to cater to roughly about 40 per cent of the market. That’s a very scary number,” Vildozo said. “If we talk about the fact that the potential for Canada is 2.2 million units, and then we take out 40 per cent, we would probably have to close a bunch of dealerships.”

He cited calls from labour unions on both sides of the border saying these vehicles will be expensive to build. But there’s a chance for some disruption.

“We have a company, a total disrupter: Tesla. Because we’re hearing it from the UAW, we’re hearing from Unifor: Battery electric vehicles are not going to be cheap. But we’ve got one guy saying, ‘Oh, I will make them cheap,’” Vildozo said.

And Tesla slashed prices of its vehicles throughout 2023 to make them cheaper. So while Vildozo sees the threshold at $25,000 for a BEV, it’s not out of the question that Tesla will push them lower, maybe to $20,000.

He also noted that other technologies could come into play in the goal of zero-emissions in addition to electric. He didn’t say what specifically, but it wouldn’t be the one you’re probably thinking of.

“We will have plug-in hybrids. And there are other technologies that are starting to be discussed in boardrooms today which will surprise us. And I’m not necessarily talking about hydrogen,” he said. “So there’s more to come related to electrification.”

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1 Comment » for Will BEVs ever be affordable enough for most?
  1. Geoff says:

    Without putting on my tinfoil hat to tightly, I think it’s safe to assume that the powers that be know full well that the average consumer will not be able to afford to own one of these cars, hence the focus on urban transport, intensification, and 15 minute cities. Cars represent individual freedom, which isn’t a popular thing with our current government,

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