Everything getting pricier, even the largest and most famous enterprises are facing difficulties, and the industries and sectors that depend on them are at risk due to the rising cost of energy. Electric vehicles were seen as the ideal alternative to rising fuel prices, but rising energy prices are threatening the future of Electric cars. If current trends continue, electric vehicles may become more expensive than petrol-fueled cars. Industry leaders in Germany have alarmed about inflation and the impact of rising energy prices on their businesses.
Rising Energy Prices Mean for EV Price:
Recently, with the rise in petrol prices, electric car ownership has been gaining traction. But since the recent hike in electricity prices the price gap has narrowed. According to UK-based insurance company, the cost of using public charging stations for EV owners is the same as the cost of petrol per mile. Although it is less expensive to charge at home, residential bills have increased as a result of rising energy prices. The problem got worse after Russia cut off the gas supply to Germany because the price of power is directly related to the price of gas.
According to the figures, the price of electric car charging has risen by 42% since May, to an average of 63.29p per kWh. In other words, drivers who use the public network to charge their cars spend about 18 pence per mile on electricity, or 1 cent less than drivers of fuel-efficient vehicles. At the same time, charging a medium-sized car at home costs around 9 pence per mile.
According To The Research Report:
Rising electricity prices along with rising raw material costs and availability, chronic shortages of parts, and a massive decline in disposable income are having a significant impact on car production and sales. As per research, an electric vehicle’s average raw material cost in May was $8,255, up from $3,381 in March 2020. Since then, inflation and semiconductor shortages have driven up prices, putting electric cars out of reach for the majority of buyers. The majority of automakers recently rise the sticker costs for EVs. For instance, GM has added $6,250 to the price of its electrified Hummer. And Tesla did the same. Model 3 Long Range now costs $57,990, up from $54,490, while Model Y Long Range costs $65,990, and Model Y Performance costs $67,990, up from $69,990. Consumers should prepare for future price hikes as production costs will skyrocket due to rising energy costs.
