The war for cheap electricity begins below 20,000 euros

Electric cars under 20,000 euros are on the way, but there are obstacles that could delay their arrival.

Cars under 20,000 euros remain rare, but the industry is preparing to address this issue. With new models and classic brands potentially returning, a distinct market category is beginning to take shape.

However, price is just one factor. Profitability for manufacturers, European regulations yet to be finalized, and charging difficulties for those without home charging facilities are among the challenges that could affect the success of these models. Not all drivers will find these compact electric cars to meet their needs.

This was the main topic of the latest episode of Auto Talks, a podcast by Razão Automóvel supported by Credibom, recorded live at the Hybrid and Electric Automobile Show (SAHE) in Porto.

The return of small electric cars

Before the pandemic, Europe sold over one million cars in the A segment per year. By 2024, that figure has dropped to less than 100,000 units. These cars are making a comeback in electric form now, but producing affordable models remains a challenge for manufacturers.

The discussion covers some of the models that may hit the market in the coming years, including the future electric Citroën 2CV. Expectations are that the supply will increase by the end of the next decade, although the European framework has not yet been finalized.

For those who travel only a few kilometers per day, a small electric vehicle might be sufficient. But the situation changes for those who don’t have a garage or the ability to charge at home or at work. It is at this point that public charging networks become important. The discussion also covers the differences between the coast and inland areas of the country, as well as the role of local governments in expanding infrastructure.

And what about until the new models arrive?

The used car market emerges as an alternative for those looking for an electric vehicle at a price around 20,000 euros. At that price, it may be possible to find models from higher segments with more space and range.

Affordable electric vehicles promise to revive a segment that has seen reduced growth in Europe. But will they be enough to bring new cars back to those looking to spend less? And which models are on the way?

Upcoming at the next Auto Talks

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