Jato Study: Electric and Performance Boom Makes Cars Increasingly Expensive

According to an analysis by automotive data specialist Jato Dynamics for Automobilwoche, the average prices of new cars have significantly increased with the electrification of drivetrains. Many brands are using the transformation for higher positioning, according to observations. At Opel, for example, the average prices for new cars have risen by 44 percent to 35,587 euros since the beginning of 2018, at Volkswagen by at least 16 percent to now 36,000 euros on average, and at Audi, prices increased by 21 percent to 50,000 euros over the same period. At BMW, a new car now costs 55,000 euros, and at Mercedes, 65,000 euros. The prices are mainly driven by electric and electrified vehicles. On average, across all brands, a new car costs 37,400 euros today, driven by electric vehicles, according to the analysis by automotive expert Ferdinand Dudenhöffer.

Pure electric cars are already significantly higher, averaging 60,904 euros for German brands (2018: 39,350) including Opel and 54,000 euros across all brands. Due to the semiconductor shortage, hardly any discounts are granted. For instance, a VW ID.3, originally conceived by the manufacturer as a "people's electric car," costs at least 36,960 euros, with the base version featuring a 5,000-euro discount and a small battery currently unavailable. Even with a volume-oriented brand like Renault, the introduction of the Mégane E-Tech moves into the higher C-segment. At Tesla, the people's electric car Model 2 announced by CEO Elon Musk for around 22,000 euros will likely be delayed because raw material costs are rising significantly, as noted by the Süddeutsche Zeitung. Although cell prices have dropped from 1,000 to 100 euros per kilowatt-hour over a decade, the price of lithium has almost doubled since last September, with high demand persisting.

Performance Race Drives Weight and Prices

At the same time, demands for range and thus battery size are increasing: A BMW iX features an energy storage of 111 kWh, with a curb weight of at least 2.7 tons. For this, the manufacturer relies on a drive with 619 horsepower in the top model iXM60, which has 1,100 Nm. The recently released Mercedes-Benz EQS AMG 4Matic+ boasts 658 horsepower (1,020 Nm, 108 kWh battery), with an SUV to follow. Other manufacturers have long committed to the performance race, driven not least by Tesla's lead (Model S Plaid 1,020 hp, 795 km, 100 kWh battery), in their electrification efforts. In the end, even "low-ground" class electric cars hardly manage less than 20 kWh/100 km due to the high battery weights today, which aligns with VM test results and ADAC's findings in the Eco Test. For example, the VW ID.3 consumed 19.3 kWh/100 km here. The new models from the Hyundai Group on the E-GMP 800-volt platform consistently exceed the values of the older, much more moderate 400-volt models in terms of performance and battery size. These are also a good example of maintaining the overall weight with a "right-sized" 64 kWh battery and achieving ranges of 450 kilometers with this package, making consumptions of around 15 kWh/100 km achievable.

"Such values are ecologically nonsensical. With reduced car concepts, we could achieve 10 kWh per 100 kilometers," criticizes Martin Unfried from Maastricht University to the Süddeutsche Zeitung about the newly sparked performance race.