What Could Make Electric Cars More Affordable Outside China
Battery-electric vehicles have reached price parity with average conventional cars in China, where 70% of such sales in 2025 were cheaper, and in Thailand comparable pricing has held for two years. Extending similar affordability to India, Europe, and the US will depend on factors beyond battery costs, including vehicle size, production scale, tariffs, competition, and incentives. Charging availability and annual driving distance also affect whether an EV saves money over time.
China’s 2025 sales data show most battery-electric cars undercut the average gasoline car, while Thailand has matched conventional pricing for two years. Still, that Chinese benchmark compares EVs with an average conventional price, not identical models. Battery packs cost $84 per kWh in China in 2025, with North American and European averages 44% and 56% higher, according to BloombergNEF.
Thailand’s BYD Dolphin fell from about THB700,000 in 2024 to THB640,000 in 2025 after output moved to local plants, an 8.6% drop. In Europe, fewer than 10% of electric models were below $30,000 in 2025, versus about 25% of conventional models. The UK BMW iX1 example shows equal pricing can occur in one model line, not across the whole market.
If lower EV prices spread to India, Europe and the US, more households could consider electric models, especially where charging is convenient and annual mileage is high. Drivers with limited home charging or low mileage may see fewer savings. Automakers and suppliers may face pressure to localize production and compete on smaller, cheaper models, while government incentives and tariffs may shape which