00:00Guys, there's an article doing the rounds today saying that electric cars have become
00:03cheaper in the United States this year.
00:08However, electric cars have actually become cheaper everywhere in the world this year,
00:14not just in the United States.
00:16I've built this article right on the current middle of the year, 2026 data and market pricing
00:23around the world.
00:24We've looked at these figures, converted them to US dollars just to give us a standard rate
00:28for the world, and what we see is electric cars are cheaper basically everywhere on earth
00:35right now versus the same time last year.
00:39If you only follow the American headlines, then they're cheaper by a few percent.
00:43But in other countries, the prices have fallen even more.
00:48Guys, let's start with why this is happening.
00:51All batteries, lithium ion batteries, have come down in price.
00:55In fact, Bloomberg NEF's latest survey puts the global average lithium ion pack price
01:02at 108 US dollars per kilowatt hour.
01:05That's at the pack, not just cells.
01:07That's including the pack.
01:08That's per kilowatt hour.
01:10That is down 8% versus the same time last year and a record low.
01:15So we know that energy storage prices have come down by 40%, but pack prices in EVs have
01:22come down by around 8%.
01:24Why is that so different?
01:26Well, with an EV, you're looking at a smaller battery than global storage, you know, where
01:31you're having, say, a gigawatt battery.
01:33In an EV, it's much smaller.
01:35So a lot of what you're paying for is the circuitry, the architecture, the packaging itself,
01:40the actual battery management system, et cetera.
01:43Battery electric packs specifically came in at $99 under 100 for the second year running.
01:50In China, pack prices average only $84, $84 per kilowatt hour.
01:57That's the lowest we've ever seen.
01:59Lithium ion phosphate battery packs, $50.
02:03That's literally half the price that they were two years ago at the pack level.
02:08And cheaper sales mean cheaper cars, and that effect is now showing up on every continent,
02:14some more so than others.
02:14Obviously, Europe, not so much because they are cheaper, but not as much as the falls we've
02:20seen in other countries.
02:21Because of the, that's because of the tariffs on EV batteries from China and EVs from China.
02:27On the Electric Viking website, I'll put a link in the description below.
02:32We have more articles about electric cars and battery technology than any other website that
02:37I'm aware of in the world.
02:39So check that out.
02:41Link is in the description.
02:43And there you'll find our videos and analysis and articles about everything going on in the
02:48EV world.
02:49China, of course, is the epicenter.
02:51In the world's biggest car market, the average new vehicle now sells for US $24,000, meaning
02:59the average new car in China is less than half the price of the average new car in the
03:04United States.
03:05The average new car in the United States was $56,000.
03:07China, $24,000.
03:10But average car prices in the US are going up.
03:14In China, they're going down.
03:17Car prices over the last two years in China have fallen by 19%.
03:22BYD's average discount hit a record 10% in March, with Geely and Cherry close behind.
03:28And here's the number that should worry Detroit and Wolfsburg across almost every segment in
03:33China.
03:34Electric cars are now cheaper than the equivalent petrol car.
03:38I'll provide a link to this source, by the way.
03:41Not at parity.
03:42They are cheaper.
03:45Facing brutal margins in China, BYD and its rivals are flooding overseas markets and
03:51taking the discounts with them.
03:53Now, unfortunately, the truth is they're not passing on those full discounts because a
03:56lot of the cars they're selling in China, they're probably making a loss on.
04:00What we're seeing is, on average, prices outside of China are around 40% to 50% higher than
04:06what they are in China.
04:08That will change, though, over the next few years.
04:11So car prices will fall even more because there's a lot of leeway for these Chinese manufacturers
04:15outside of China.
04:17The price war is being exported and Australia is Exhibit A.
04:23Two years ago, the cheapest new EV here cost $45,000.
04:28It wasn't that great either, and I own one, so I know.
04:31That's around $31,000 US dollars.
04:34Today, the BWD 801 starts at $23,990 Australian dollars.
04:38That's around $16,000 US dollars.
04:41That's the lowest price ever for a new electric car in this country.
04:45And by the way, there's a new version of that car coming out, which is going to be much
04:48better.
04:49The BWD Dolphin is just under $30,000.
04:52The Geely EX2 is $27,000.
04:55These are vehicles that are costing around $20,000 or less US dollars.
04:59There is now more than 20 EVs under $40,000 Australian dollars or $28,000 US dollars in
05:06Australia, more than 20.
05:08And battery electric cars are pushing past 15% of new sales this year.
05:14The fall has collapsed.
05:15Now, in the last month, battery electric car sales actually were 24% of the entire market.
05:20And you can see why.
05:22Prices.
05:23Europe is watching the same thing unfold.
05:25In Britain, the Dacia Spring now costs £12,000.
05:30That's around $16,000 US dollars.
05:32It's the cheapest new car on sale in the UK of any kind, petrol or electric, and it's electric.
05:37Guys, another car, its Chinese-built rival, the Leap Motor T03, is £12,995.
05:44That's about $17,000 US dollars.
05:47Both of them are cheaper than the equivalent petrol car.
05:50The Dacia version is more expensive, the petrol version.
05:55Pure electrics are now over a fifth of the UK market.
06:00In fact, they're about a quarter.
06:01They were 30% in the last month.
06:04In Germany, the average battery electric price fell by around 6% last year as cheaper models
06:10landed.
06:10But EV prices in Germany this year have fallen by about 15%.
06:15EVs are back near one-third of the market as a result.
06:19France, Italy, Spain, and Poland all saw electric car sales increase as prices went down.
06:26India, they're playing the same game but at a different altitude.
06:29They're a little bit behind.
06:30The cheapest electric car there is the tiny Vive EVA.
06:34That starts at $3,000 US dollars.
06:37Mainstream city cars like the MG Comet and the Tata Tiago, they are around $7,000 US dollars.
06:44They're helped by the 5% tax versus 28% tax on petrol and by battery-as-a-service deals
06:51that
06:52pull the battery out of the purchase price and cut up to 40% off the price of the car.
06:59So, the list keeps growing.
07:02Vietnam, homegrown Vinfast car brand has pushed electric cars past 40% of all car sales in
07:10all of Vietnam.
07:11Probably haven't heard that before.
07:13And why?
07:15Well, they're cheap.
07:17This is what Tony Seed was predicting.
07:18He was right.
07:19In Thailand and across Southeast Asia, the same Chinese brands undercutting Australia are
07:24triggering local price wars of their own.
07:26Brazil has become one of BYD's fastest-growing export markets.
07:30Price is the reason.
07:32The common thread everywhere outside of North America is simple.
07:37Chinese competition and the cheap batteries behind it.
07:41So, where does that leave the United States?
07:43Well, the market those, you know, these original headlines were about, prices in the US are
07:48even falling as well.
07:49But probably for the opposite reason.
07:52The average new EV still costs around $55,000 US dollars.
07:56What actually cratered is the used market.
08:00The average used EV price dropped 32% in a year to under $28,000.
08:08If you want to use EV in the United States right now, there has never been a better time to
08:12buy one.
08:13The trigger wasn't cheaper manufacturing.
08:15It was the death of the federal tax credits at the end of September, plus a flood of lease returns
08:20hitting car lots.
08:22American EVs are getting cheaper because the subsidies vanished and supply piled up.
08:28The rest of the world's EVs are getting cheaper because the cars themselves got cheaper to build and the batteries
08:32were cheaper.
08:33And because Chinese brands are competing on price in a way US buyers are locked out of completely by 100
08:42% tariffs.
08:43That's the real divide here.
08:45Battery costs are down more than 10-fold from the early 2010s.
08:50And China is turning that into a genuine global price war.
08:54Everywhere it's allowed to compete.
08:57Everywhere.
08:59Australia, the UK, Israel, much of Europe are getting the payoff right now, brand new electric cars for the price
09:05of a used hatchback.
09:07The US is getting cheaper EVs too, just through the backdoor of collapsing resale values instead of cheaper factories.
09:14The affordable EV era isn't coming.
09:17In most of the world, it's already here.
09:20In much of the world, it's cheaper now to buy an EV than it is an internal combustion car.
09:24The only question left is which markets keep the door open to the competition driving this.
09:29And which ones try to hold the line and pay more for the privilege?
09:36What do you guys think?
09:38Let me know in the comment section below.
09:39If you haven't already, subscribe to the channel.
09:41Hit that like button.
09:42Because that actually helps me to get this content out to more people.
09:46Most people think EVs are more expensive than combustion cars.
09:50They've just been brainwashed.
09:52So please share this video.
09:53Let them all know about it.
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