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When should prices be equalized between electric and internal combustion vehicles?

Sales of electric vehicles have been increasing year by year in Chile, but this 2022 achieved a significant increase. One of the main advantages of choosing these vehicles is that they are more sustainable with the environment, but they also mean savings to the extent that they have medium or high usage. In addition, their prices have decreased with the introduction of new technologies and batteries with greater autonomy. Because even our mailbox Contestadogof The guard dog Pautacame the next question: when should the price be equalized between electric cars and combustion cars?

Increase in sales of electric cars

According to the last sales report on zero and low emission vehicles published by National Automotive Association of Chile (ANAC), last May was the best month in history for sales of light and medium vehicles with these features, based on mild hybrid, hybrid, electric and plug-in hybrid versions, with a total of 759 units with zero kilometers.

As for electric vehicles, which correspond to those vehicles that work only with batteries and are charged by connecting them to the electrical grid, 443 have been sold from January to May 2022, with the fifth month of the year being the one with the highest sales. with 155 units. .

Daniel Celisexecutive director of the Association of Electric Vehicles (WITH), says that about 2,600 electric vehicles are in circulation in Chile. Among the biggest brands in history are Hyundai, Nissan and more recently MG.

“Almost all brands today, whether they’re the most famous, the biggest, or not so much, are focused on making the transition as quickly as possible towards investment-only electric models,” says Celis.

The best-selling brands between January and May 2022 are DS, Maxus, Nissan, Audi and BMW, according to the ANAC report.

According to him list of vehicles marketed in Chilepublished by the Ministry of Energy’s e-mobility forum, there are a total of 111 models in the country, which include both pure electric and hybrid vehicles with external charging.

“The point is that the offer is still not very diverse, because the models are very few compared to the number of models and options that combustion cars offer you. And that’s why they also have high values, which are in the range of $25 million upwards. for private cars,” adds Celis.

paul viollier, the communication consultant of Porsche Chile, assures that there are still a few years for the career to recover. “Especially because of the high cost of producing an electric car today, which is between 40% and 50% more expensive than an internal combustion car.”

He adds that the main reason is the battery and the materials associated with it, such as the extraction of lithium and cobalt. “While battery prices have fallen by around 80% in 10 years, lithium prices have risen steadily, which has impacted costs,” he says.

However, there are those who are betting on price convergence in a few more years. Alberto Lucchini Rayes, co-founder of Lucchini Macchina SpA and professor of Autotronics at DUOC UC, guarantees that by 2030 the price of an electric car should be equivalent to the cost of an internal combustion car. “Of all the electric cars available on the market today, the prices are relatively higher than combustion cars, and this is primarily because these are relatively advanced cars. So when we compare them to their combustion counterparts, the prices are not that different,” explains the scholar.

Similarly, Celis adds that there are factors that have caused this interval, which was expected to be normally between 2024 and 2025, to be delayed by several years. The pandemic and the war between Russia and Ukraine caused a standstill in the supply chain of electronic components, causing shortages and therefore an increase in their prices, which could cause the price curves of electric cars and internal combustion cars to converge from 2026. He explains that these deadlines would be for private cars, since at the level of fleets, vans or vans, it is estimated that it could be even earlier.

According to the Global Electric Vehicle Outlook 2022 report, sales of electric vehicles approached 9% of the new car market in 2021, a figure four times higher than in 2019. Sales in China and Europe accounted for more than 85% of the world market, followed by the United States, a country that accounted for 10% are attributed, which doubles its percentage in 2020.

Electric mobility in Chile

Based on the growth that the Chilean car fleet has experienced in recent years, with the arrival of more than one million new cars in circulation from 2018 to date, the Anac report indicates that “it is necessary to invest in increased charging infrastructure and create incentives for end users , bring this technology closer to the average driver and thus allow the fleet to be expanded with electric vehicles”.

According to the government’s e-mobility platform, until April this year there are 574 charging stations or power lines throughout the country, including 350 in the capital area. The application Echo Charge It allows knowing the geographic location of available public charging stations, as well as indicating the charging time, power, type of port and number of ports for a specific brand and model.

Celis explains it electric cars have different autonomy depending on the model and type, with a performance that reaches between 200 and 240 kilometers in the lowest part and can reach up to 400 kilometers.

“I think it’s a fact that electric cars are growing, but the values ​​and the incentives, both where to charge the energy and the value of the cars, are still very high,” he says. Raul Dell’Oro, executive director of Piedmont. He adds that tax incentives are needed, that is to reduce taxes to increase the volume of these vehicles.

Despite this, he assures that the main benefit of these cars is their contribution to the environment, as no emissions of polluting gases are produced, which is added to the low maintenance and fuel savings.

Regarding the latter, Celis assures that an electric car is between 10 and 15 times cheaper per kilometer than an internal combustion car.

If we charge at home, one would pay about four to six thousand pesos per “pond” in a slow charging port (20 to 25 hours). On the other hand, if we charge in a mall where we have semi-fast chargers (4 to 6 hours), the grace is that many of them are free, but if we use a fast charger (45 minutes to an hour), we may pay about eight thousand pesos for a full charge ,” says Viollier.

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