Electric vehicles are redeveloping the entire automobile industry as they are the best alternative of the traditional vehicles. As we all know vehicle emissions are destroying our mother nature gradually, this is why most people are turning towards electric vehicles. But one thing is that electric vehicles are much higher in price than traditional vehicles, and here are the few reasons behind this.
5 reasons behind the high price of electric vehicles:
- High priced elements: Electric vehicles batteries are generally made of lithium-ion and lithium polymer. Lithium-ion batteries mainly consist of certain elements such as lithium, cobalt, manganese, nickel, graphite and steel. The main component lithium is also considered as liquid gold as this element is high in price and to be more specific, the rate of this element is awfully increasing since 2010. This is the main reason why electric vehicles are much higher in price than traditional vehicles.
- Insufficiency of production: There are a huge number of electric vehicles manufacturing units have already been set up throughout the whole world. However, the number of Ev manufacturing units is still less than the manufacturing units of traditional vehicles, and this is also a reason behind the high price of electric vehicles.
- Exchange rate of electric vehicles: The exchange rate is an important reason behind EV’s high price. In simple words, if the currency of one country where an electric vehicle is being manufactured is inferior to the currency of another country where that EV is sold, then that EV would cost more to the buyer in the second mentioned country. This is why Renault, Mercedes, Tesla and GM costs increase when they are transported to India.
- Rising demands of electric vehicles: As reported in the Global Electric vehicle outlook report of 2022, the sales of electric vehicles have multiplied in 2022. This indicates that the prices of electric vehicles would increase along with the demand of EVs. Also, remember that the price would only increase depending on the manufacturer, model, and place where you are purchasing.
- High-end programming and high insurance: The programming of electric vehicles may seem easy compared to traditional vehicles but the programming used in the manufacture of electric vehicles is high end, resulting in the high EV cost. Due to the fact that EVs are pricier, the premium of electric vehicle insurance is also on the pricier side than the conventional vehicles.
As a consequence of higher priced batteries, rising demands, premium technology, exchange rate are the reasons for the increase in the price of electric vehicles. Apart from these reasons, one cannot deny the fact that electric vehicles are low-maintenance, and ideal for a greener planet.
