This Factor Compelled EV Automakers To Hike Prices

Automakers are set to hike the prices in order to offset the surging cost of raw materials. The long running supply challenges aggravated by the Russia-Ukraine war triggered a rise in the prices of materials such as nickel, lithium, and cobalt. These raw materials necessary components for EV (Electric Vehicle) batteries.

According to a report in Business Insider, residents of United States have to shell out $54,000 on an average to buy an electric vehicle, a rise of 22% in just one-year, according to data available.

Users in America are paying $44,000 on an average for fossil-fuel powered vehicle highlighting a 14% gain in the year to May, according to a research by JD Power highlighted by The Wall Street Journal.

Earlier in the year 2020, the cost was on average $3,381 to amass the raw materials required for a single EV. However, the cost has now surged to $8,255 with a rise of 140% according to Alix Partners.

The price of EV has gone up and now causing trouble for motorists who are keen to abandon fossil fuel-powered cars to avoid record gas prices. It is worth noting that the average cost of regular gas was last put at $4.90 a gallon by American Automobile Association, down from the above $5 earlier in June but up from $3.10 a year ago.

Meanwhile, online searches for EVs have jumped 73% since January, according to data provided from auto shopping website Kelley Blue Book and Autotrade, as per WSJ.
EVs constituted nearly 4.5% of US Car sales recorded in the year 2021, as per data available from International Energy Agency.