2022 price increases on EVs due to rise in manufacturing costs.
There's a whole lot of issues putting strain on car manufacturing right now - find out how this has affected electric vehicles.
Why are electric vehicels going up in price?
Unless you’ve been living under a rock, we’re sure you’re aware of the price increases hitting just about everything right now. From April 1, 2022, the prices of raw materials are set to soar, meaning that fuelling up your car is getting a lot more expensive. Whilst it might seem that electric vehicles have gotten away mostly unaffected, they’re facing a different kind of battle with price increases.
When it comes to manufacturing electric vehicles, there are a number of key components that come together to build those all-important batteries. Right now, the prices of raw materials that are used in the manufacturing process, like nickel and aluminium, have more than doubled. This has a lot to do with Russian supplies being at risk, and we have no real idea of when these risks will be reduced. Many car manufacturers are already avoiding Russian goods completely, so there’s increased pressure on the carmakers who are already battling against the semiconductor chip shortage (learn more about that, here) and the rise in energy prices.
Nickel in particular has hit an all-time high, with prices sitting at $100,000 per tonne. As material prices soar, supplies run low, and energy costs increase, it’s putting a lot of stress on the automotive industry.
What does that mean for building our EVs? Well, it means they’re a lot more expensive to manufacture.
As a result of the rising cost and scarcity of such materials, there’s currently a reduced supply of EVs available and lead times will be longer than usual. In turn, and to ensure that dealerships and leasing brokers can survive, they’ll be price increases across the board for electric vehicles.
It’s not an ideal situation and nobody is happy to see these increases come into place (it’s not as if we’ll be making extra profit off the back of this!) but it’s essential to ensure businesses can keep dealing and remain open. If you want to grab an electric vehicle at the current, lower price point, it’s important to get your order in right now.
Tesla have been quick on announcing their price increase – sharing that the Tesla Model 3 will be seeing a price increase of £1000 per model, whilst the Model 3 Long Range will go up by £2000. You can avoid this price change by ordering before March 23, 2022.
We appreciate that these issues are hitting consumers hard, so just let us know if there’s anything you need, or we can help out with. In the meantime, if anyone has a secret stock of raw materials we don’t know about – give us a call?
Take a look at our full range of electric vehicles here.