According to data collected in JD Power’s E-Vision Intelligence Report, over a 5-year period, the vehicle ownership cost of a premium EV is $287 more than its equivalent ICE-powered models. However, the price difference is significantly higher for mass-market vehicles. The report states that the cost of ownership of a mass-market EV is $9,529 or 18% more than their ICE counterparts over a 5-year period.<\/p>\n
As an example, JD Power states that a Mercedes-Benz EQB has an average 5-year ownership cost of $72,107, while a comparable ICE model would cost $71,420; $687 less. However, a Ford Mustang Mach-E, which JD Powers considers a mass-market EV, is said to dent customers around $16,000 more than a comparable petrol-powered crossover.<\/p>\n
The report states that this non-linear trend is due to the fact that automakers tend to introduce expensive halo products first before transitioning to affordable EV offerings. The data suggests that 76% of EV sales are occurring in the luxury market.<\/p>\n
JD Power stated that carmakers will have to prioritise the electric compact SUV segment. Also, to achieve price parity, they will have to introduce more affordable models in the future.<\/p>\n
Brent Gruber, Executive Director & Global Automotive MD, EV Experience at JD Power, stated, “Many premium brand dealers are passing through the EV tax credit on vehicle leasing, which makes the cost of their vehicles more favourable.” On the other hand, he also mentioned how many mass-market EVs don’t qualify for tax credits, and even if they do, dealers don’t pass them on with leases – this is where they lose their competitive edge.<\/p>\n