South Korea: EV Makers Will Have Hard Time Matching Tesla's $25,000 Car
A combination of new low-cost platforms and high-volume production will be necessary to bring the starting price to $25,000.
Tesla Battery Day has left concerns about the competitiveness of automotive manufacturers if Tesla really launches its $25,000 “cheap” electric car in 2023.
According to the media reports from South Korea, domestic manufacturers will need more time, a few additional years, to develop a comparable model at such a low price point.
Matching the prices in 2023 would result in a lack of profits or high losses. Currently, domestic medium-sized EVs are priced at 45.6-48.8 million won ($39,000-$41,800), while the smaller ones at 39.2 million to 41.7 million won ($33,600-$35,700).
So they have just a few years to lower the prices by at least 25-35%, maybe even 40%. On the other hand, Tesla several times showed that the entry-level versions with base price are offered later than the top version, and sometimes are retired entirely.
For example, the $35,000 Model 3 was listed online only for a short time, then switched to stealth mode (ask individually if you want one).
In the case of Hyundai Motor Group (Hyundai and Kia), the step-improvement should be the new Hyundai Electric Global Modular Platform (E-GMP), but the group needs also to produce EVs in a high six-digit volume to lower the costs.
According to the article, the production target for the upcoming 2021 Hyundai Ioniq 5 is 70,000 a year.
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