In the history of the electric car, the megafauna of 2022 will be remembered: Finally, enormous electric trucks with equally exorbitant prices roamed the land. However, there should be a subspecies of SUVs this year, including some that are slightly smaller and, rarer still, a few that have smaller window stickers. Here are four predictions to keep in mind if you’re looking to buy a car.
At Costco, you can anticipate seeing more EVs
Over the next year, approximately the same number of brand-new electric vehicle models as this year will be introduced in the US. Critically, however, many of them target a sweet spot in the American market—one that is convenient for families and cargo as well as inexpensive.
If it follows in the footsteps of its smaller sibling, the EV6, Kia’s EV9, a genuine three-row vehicle, will probably also reach somewhat affordable levels. In addition, VinFast, a Vietnamese manufacturer, will launch its VF 8, a small SUV with a price tag of $40,700 (even though the battery comes with a plan for a monthly subscription).
To a limited extent due to their lower profiles, the two vehicles gloat great productivity, posting excursion-prepared range figures with batteries far more modest than those tracked down in most American EVs.
The market for properties valued at more than $100,000 is not slowing down
In 2023, there will be a lot of posher SUVs, including a version of the GMC Hummer EV that will cost at least six figures; the primary electric Lexus named RZ; an “electrified” version of the GV70 made by Hyundai; two additional Polestar compact crossovers with the names “3” and “4”; and the Mercedes EQE and EQS, which sit at the top of the luxury ladder. Even a substantial electric Volvo is mentioned.
The Rivian R1S and Cadillac’s new Lyric, which are technically on the market but are still uncommon on most American roads, will also begin to appear in greater numbers. On the truck side, GM will finally begin to phase out its Silverado EV, a model that consistently attracts more than 500,000 gas customers annually.
Problems with manufacturing will hardly improve
Those on the chase after an electric SUV will see their decisions twofold in 2023. However, picking out a new whip and purchasing one will always be very different things. Prices will continue to rise, and legacy automakers will continue to be eager to sell gas-powered vehicles as they rapidly expand the EV market.
After halving its production targets late in the summer, Lucid Group was only planning to produce 6,000 to 7,000 electric vehicles in 2022.
In 2023, S&P Global Mobility anticipates that drivers all over the world will purchase 10 million EVs or almost 14% of the market. However, these vehicles won’t be cheap. S&P warns that EV fever is pushing prices even higher, and the Inflation Reduction Act’s rash of new incentives will only slightly lessen the pain.
It won’t get any easier to make money with EVs
The unit economics of electric vehicles is still poor, even though the companies in Detroit, Seoul, Stuttgart, and Tokyo may now have access to the necessary computer chips. In 2022, lithium-ion battery prices increased by 7% for the first time. Additionally, a number of the industry’s most brilliant individuals, such as Rivian CEO and co-founder RJ Scaringe and Toyota President Akio Toyoda, are concerned that it will take years for the battery supply chain to catch up.
Therefore, the most effective strategy for auto executives may be to maintain the straightforward bait-and-switch: Low starting prices encourage drivers to switch to electric vehicles while primarily eradicating much more expensive models with higher trim levels. The logic goes that if you can’t make enough cars already, make the ones that make the most money.
However, it might not be a good idea to rely on indefinite demand if the economy continues to struggle and interest rates continue to rise. S&P analyst Chris Hopson says that “recovery towards pre-pandemic vehicle demand seems like a hard sell” because “US consumers are hunkering down.”
Ironically, no one knows how many drivers want to switch to electric vehicles, but it’s safe to say that many. The percentage of people who are interested in electric vehicles (EVs) is typically estimated to be between 25% and 50%, and this proportion will only grow as more products become available. The saying goes, “it’s the best of times, but it could be better” when it comes to green driving.