Lowering EV prices suggest that manufacturers have to address evolving needs

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Volkswagen will soon launch it’s ID2.all.  The « peoples' » EV. With expected launch price of around 25.000€ the ID.2 will help EV makers address the larger market of car buyers.  According to Auto Express

Volkswagen has announced it wants 80 per cent of its sales to be pure-electric by 2030 in Europe and over three million EVs produced at its Spanish plants up to that date. The ID.2 will play a huge role in reaching those targets.

New 2025 Volkswagen ID.2: powertrain, interior and design of game-changing EV

But are lower prices good?  Of course low prices will help attract new buyers – but  – a lower price signals a lower trade-in value (as prices for used EVs are falling).  This sends a warning message to potential buyers that their « investment » will depreciate faster than expected.  Falling prices are also reflecting a situation of over-supply (prices trend down when quantity demanded is less than quantity supplied).

The cheaper prices might bode well for buyers, but they raise concerns that low resale values could hurt EV adoption among mainstream consumers. The falling prices also add fuel to a debate over whether EV demand is faltering.

Why experts say falling EV prices could actually hinder widespread adoption

Overall, the market demand is changing as we move from early-adopters to early-majority buyers, the strategy of EV makers has to evolve.

Early majority buyers are looking for a clear advantage of EVs over IC engines. Also innovations have to be aligned with current behaviours. So issues like range anxiety and lack of charging infrastructure need to be addressed to attract the new buyer profile.

What needs do the new EVs need to address to get YOU to buy ? Leave a comment.

References :

https://www.autoexpress.co.uk/volkswagen/355735/new-2025-volkswagen-id2-powertrain-interior-and-design-game-changing-ev

https://www.cnbc.com/2023/12/08/falling-ev-prices-could-hinder-adoption-experts-say.html

https://fastercapital.com/content/Early-majority–Bridging-the-gap-in-the-Diffusion-of-Innovations-Theory.html#Factors-Influencing-Early-Majority-Adoption