
[ad_1]
Such is the current cost of the battery that, when placed in a supermini to provide an acceptable driving range, it becomes on average 60% of the total cost of the build, according to a recent analysis by the Bernstein bank. However, due to the higher pricing power of cars in the class above, the battery part of the build cost has dropped to 40%, better to hide the cost.
Carmakers are obviously trying to achieve the same profit margins on EVs as ICE cars, but it’s nearly impossible to pass it all on to the buyer of a supermini, according to Bernstein. Purchase incentives make these small cars viable in many countries across Europe, but not in the UK, where all the persuasion is aimed at company car drivers, who are not inclined to choose superminis. The only supermini to make the EV top 10 up to the end of October in the UK was the electric Mini.
That pricing hump means the affordable EV trailblazer MG won’t switch to an electric powertrain for the MG 3 replacement, which rivals the Dacia Sandero at the budget end of the market. “Building a small electric car is slightly cheaper than building a larger car,” said UK commercial director Guy Pigounakis. “Then half the price is the battery so it becomes a £25,000 car, which is unaffordable”.
However, electric superminis are in the pipeline. The VW Group is planning a trio of small electric cars for the Volkswagen brand, with Skoda and Cupra variants to follow in 2025 with a target price of entry below £22,000. All are expected to be made at the same Spanish factory to increase scale effects and they are likely to use cheaper steel-based battery chemistry of the type that helped MG cut the price of its 4 compact hatchback to less at £26,000 .
The trick is of course to get the customer to pay more and you hope you can cover the extra cost of the batteries that way. For example, the Spanish-badged version of the small VW Group EV will be the upmarket Cupra, previewed by Urban Rebel, instead of a Budget Seat.
One or more of the trio will likely be styled to resemble a small SUV, a trick that has paid dividends for carmakers over the past six or so years as they look to increase the price of the ready customers pay for combustion-engine superminis .
[ad_2]
Source link