Now you too can buy electric vehicles. It’s now myth that the electric cars are only for the very rich people. Think once again.
In February,2023, the average U.S non-luxury cars including both gas and electric were retailed for about $44,700. Even though there are at least 10 electric cars that cost less than that price and even three electric cars are under $30,000.
The Federal, state and local rebates and incentives can also help to reduce thousands of dollars in electric vehicles buying price.
Even the leasing of an electric vehicle can make you eligible for a greater federal tax rebate than buying that EV.
Here are the 10 cheapest electric vehicles to buy in your budget:
Chevrolet Bolt:
Price: $27495
Federal Tax Benefit: $7500 Fedral Tax Credit
Estimated Rang: 259 Miles
Fun to Drive with great range.
2. Chevrolet Bolt EUV:
Price: $28795
Seating Capacity:For Five
Federal Tax Benefit: $7500 fedral Tax Credit
Estimated Rang: 247 Miles
Larger version of GM’s original Chevy Bolt.
3. Nissan Leaf S:
Price: $29135
Estimated Rang: 149 Miles
Leaf S is a great option for those who drives shorter distances and charge primarily at home.
4. Mini Electric Hard Top:
Price: $31895
Estimated Rang: 114 Miles
A Zippy import, the Mini Electric gets agile handling and quick acceleration.
5. Hyundai Kona Electric:
Price: $34885
Estimated Rang: 258 Miles
One of the best electric vehicle under $50,000
6. Nissan Leaf SV Plus:
Price: $37135
Estimated Rang: 212 Miles
Second generation Leaf gets high marks for safety and its practicality from the consumers.
7. Volkswagen ID.4 Standard:
Price: $40290
Estimated Rang: 209 Miles
Offers Ample cargo space and three years of electrify charging at America’s fast charging Network.
8. Kia Niro EV Wind:
Price: $40875
Estimated Rang: 253 Miles
Comes with driver assistance and wireless smartphone charger.
9. Hyundai Ioniq 5:
Price: $44235
Estimated Rang: 220 Miles
Compelling choice for anyone moving first swing towards Electric vehicles.
10. Nissan Ariya:
Price: $44525
Estimated Rang: 216 Miles
Nissan Ariya is a Crossover SUV, comes with important safety features like blind spot monitoring and automatic braking.
Conclusion:
There are various automakers and new upcoming startups in the field of electric and hybrid vehicles manufacturing are coming to the market and new inventions are creating more opportunities for the players. This definitely creates more possibilities to reduce the manufacturing cost and then the selling price.
Even the tax incentives and government rebates are the key point of discussion for the price relaxation in all electric vehicles.
So the average and common people should rethink before purchasing their new car and can think of any budget Electric Vehicles.
The market share of new electric cars surpassed 7% for the first half of the year 2023 , moving past a critical tipping point for mass acceptance. In the last few months, all-time sales capped 3 million.
Electric Vehicles Market Growth Analysis:
However, perhaps the most remarkable of all is the accomplishment of a record-hot pace of almost one (01) million new Electric Vehicles per year. According to an analysis of Bloomberg Green, in the last 12 months through June, Americans bought 977,445 cars that run solely on electricity.
In the U.S., it took approx. 10 years to sell its first million fully electric vehicles, two years to reach the second million, and just over a year to reach the third. By the time the up-to-date quarter’s records are checked up over the next month and is supposed that the country should be well on its way to a fourth million EVs.
A 12-month rolling sales of electric vehicles is another way to look at the yearly pace of EV purchases, which reveals unexpected progress. For this attitude, each new calendar quarter displays the year of EV purchases leading up to that point. It smooths out periodic variations that can disguise longer-term trends.
During the period during the start of the pandemic, the only time 12-month Electric vehicle sales declined was during a brief stretch beginning in the third quarter of 2019. That is when Tesla for the time being exported a substantial share of its American-made Model 3 inventory to kick off overseas sales.
The story of U.S. electric vehicle acceptance has so far been the tale of two leading actors: the state of California and Tesla Inc. The crucial EV tipping point of 5% of new car sales among the first top 10 worldwide auto market was reached only by California. Tesla recently removed Toyota as the top-selling vehicle brand, electric or otherwise, in the state
Conclusion:
Markets need to branch out for Electric Vehicles to become truly mainstream across the U.S., and for the Detroit auto industry to continue the changeover. Geographically, this happens with California losing some of its U.S. EV shares to states like Texas, Florida, Washington, and New Jersey. Tesla, however, is still very much in the driver’s seat, responsible for 61% of EVs ever sold in the US.
The analyst Corey Cantor of Bloomberg looked at a similar 01 million electric vehicles milestone that included plug-in hybrids. As per the result of the analysis, if you include all cars that come with a plug, he found, that Americans are already buying a million EVs every nine months.
India is the fastest-growing and one of the world’s largest auto marketplaces and has a big population with millions of electric vehicle owners. There is a significant impact of environmental consciousness for the transition from gasoline-powered vehicles to electric vehicles throughout the globe and India is leading in the adoption of green fuel energy sources and electrical vehicles.
As per the IEA report, more than 90% of India’s 2.3 million electric vehicles are cheaper and are two & three-wheelers, motorbikes, and E-Rickshaws.
Analysts say that because of last decay’s enormous rise in fuel and consumers’ awareness of cost benefits, the government has announced a $1.3 billion federal plan to encourage electric vehicle manufacturing and to provide rebates for customers.
Have a look at how the government incentives and cost-conscious customers have given a boost to an electric vehicle boom in India:
1. Government Incentives for Electric Vehicles:
Policy Framework:
In the year 2015, the government of India has launched FAME (Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles scheme. This scheme is to provide incentives for the purchase and usage of electric and hybrid vehicles.
Tax Incentives:
The Indian government has reduced the GST (Goods & services Tax) on electric vehicles as lowered as 5% only whereas the same on gasoline-powered vehicle is 28%.
Charging Infrastructure:
The Indian government is very much focused on creating a robust infrastructure of Electric Vehicles charging systems. The plan is to set up electric vehicles charging stations on highways and within the cities at a regular interval.
State Incentives:
All the states of India have their own policies of electric vehicle and they are offering some additional incentives, subsidies, and extra waivers to both the manufacturers and the consumers. For manufacturers, the state government provides land and electricity at subsidized rates, and for consumers, they may provide rebates in road taxes and rebates in the registration fee of the electric vehicles.
Promotion of Local Manufacturing:
The government has introduced the ‘Make in India’ initiative to support and boost local manufacturing. The goal is to make India a global hub for electric vehicle manufacturing in view of creating jobs for local people and also to reduce production costs.
2. Cost- Conscious Customers:
Lower Total Cost of Ownership:
However, the initial cost of purchasing the electric vehicles are comparatively high, but the total cost of ownership i.e. the cost of fuel, maintenance and other costing for the lifetime of the vehicles are comparatively lower in electric vehicles.
Economies of Scale:
The demand of electric vehicles are increasing day by day and subsequently it results the more production of the electric vehicles. This brings down the low cost of the manufacturing and resulting the lower market price of the electric vehicles.
Increase in More affordable Models:
During the initial stages of manufacturing the electric vehicles, the most available models were only in the premium segments. However, with the increase in demand of the electric vehicles and because of local manufacturing, more affordable models are coming in the market and it is more convenient to select and opt for the customers.
Environmental Awareness:
Swatch Bharat and Clean & Green Movement for pollution-free atmosphere is the major concern of everywhere. The increase in awareness among the consumers about the environment leads to electric vehicles.
Enormous Rise in fuel cost:
The consistent rise in fuel cost i.e. increasing cost of petrol and diesel in the major reason to shift towards alternative fuel and the electric vehicles.
Conclusion:
The collaboration of government policies along with the essential financial and environmental benefits of electric vehicles has created a rapid adoption of electric vehicles in India and even throughout the globe.
If the present trends continues and innovations & the technologies advances then India will definitely see a major transformation in the transportation sector and the automobile market.
The price range of electric vehicles depends on the battery size of the vehicle, the ability of the motors to power the vehicle and increase the range, the charging capability of the vehicle, and other additional features like infotainment or interior and exterior features.
The major factors that can affect the overall costs of owing an Electric Vehicles are:
1. Cost of Electric Vehicles Compared to Gas-Powered Vehicles.
Electric vehicles generally come with a higher price tag than gas-powered vehicles as per your choice of the make and model you want to drive.
However, few small and compact electric vehicles with acceptable range for city driving or small travels usually retail for a lower label price than many gas-powered SUVs or mid-size sedans.
Electric vehicles require less maintenance and no cost of periodic oil changes after every three to five thousand miles as required for gasoline-powered vehicles. However, the electric parts are more expensive to repair or replace in case of wear and tear and accidental damages, though the life of lithium-ion batteries is generally around 10 years. The wheel tires of an electric vehicle are of the same life as those of gas-powered vehicles.
Because of a unique structure and higher cost of repairs of an electric vehicle, the insurance premium cost is greater as compared to the gasoline- powered vehicles.
2.Costs of Powering an Electric Vehicles:
What makes Electric Vehicles so appealing to drivers beyond the eco-accommodating emanations is the capacity to control a vehicle exclusively on electric battery power. Electric vehicles run on the energy produced by an electric engine, which is estimated in kilowatts. Higher kilowatt yields equivalent to more ability to speed up and support the EV.
Like the idea of a gas-powered motor, the more power you feed your vehicle, the more speed and taking care of you get from the vehicle. Rather than searching for an all-the-more impressive motor filled by gas, EVs convey power in light of the vehicle’s battery limit in kilowatt-hours (kWh), which lets you know how much energy a vehicle stores in the battery pack.
3. Basic Charging Costs:
The expense of charging your EV in light of kilowatt-hours will likewise affect the general cost of an electric vehicle. The most costly charge comes from public quick charging stations, however assuming that you plan out your charging timetable to routinely re-energize at your home, you’ll bring about insignificant energy costs.
You can find out about the genuine expense of running an EV in light of the amount it expenses to re-energize the battery. For instance, utilizing a normal 120-volt power source (a similar one you’d use to connect your toaster oven) takes a normal of 40-50 hours to completely charge an electric battery at the most minimal power level. With the typical expense of power at 15 pennies for every kWh, you’re still just paying $7.50 max to charge your vehicle.
Most EVs offer a level 2 charging connector you can equip for your home. These regularly run 240 volts, diverting seriously charging capacity to the battery. Level 2 charges top off your battery power in a normal of 4-10 hours, bringing your costs down to $1.50 or less. Kilowatt-hour rates differ broadly by state, yet utilizing the public typically assists you with computing a good guess of how driving an EV puts on your electric tab.
4. Costs for Fast Charges:
As an EV driver, you are probably spending significantly less to control up as opposed to filling your vehicle. Yet, maneuvering into a quick charging station builds your energy costs.
That is because the advantageous quick charge costs more each kilowatt-hour, frequently twofold or more than the normal cost you would pay at home. For instance, EVgo, from one side of the country to the other, quick charging station, charges non-individuals 34 pennies for each kWh or 29 pennies for fundamental-level individuals in addition to expenses.
To try not to pay something else for a battery re-energize, plan to control up for the time being, saving quick charges for times when it is very important, like startling traffic or during a long excursion.
5. Conclusion:
The electric vehicles are the future of the road conveyance and transportation system. These alternative fuel vehicles are the demand of next generation for a sustainable growth and clean & green environment. Thus people should be come forward to think and adopt the new era vehicles and the electric vehicles are the best option in this way.
The electric vehicles are a little costlier as compared to the gas-powered vehicles but with the innovations and the upcoming developments, the EVs will be more compatible and cheaper with many government incentives and rebates, which are already offered in many states and countries.
Electric Vehicles are the future. As the worldwide community is becoming very aware of the environmental challenges and the sustainable futures. An effort to transition from fossil fuels to sustainable energy sources is rising. The major concern towards a sustainable future is the conveyance systems running on fossil fuels. Electric vehicles (EVs), when seen as innovative ideas, are presently at the very front of this change, ready to reclassify portability for a practical world.
Historical Overview of the Electric Vehicles:
The Origin (1820s-1920s): The concept of electric mobility was initially started during the early 19th century, i.e. by the end of the 1800s, in the country like Europe and the U.S., electric carriages and trolleys were relatively very common, and popular for the mobility.
Decline and Rebirth (1930s-1990s): As the internal combustion engines became governing and dominating the vehicle market, Electric Vehicles faded into anonymity. Yet, the oil crises during the 1970s brought transformed interest in substitutes.
21st Century Revival: With innovative technological advances in batteries and a greater focus on environmental issues, automotive manufacturers like Tesla brought Electric Vehicles back into mainstream discussions.
Technological Advancements for Electric Vehicles:
Battery Technology:The high energy density, long lifespan, and decreasing cost of lithium-ion batteries enable EV manufacturers to rework and do more research for the growth of the electric vehicle market. Even the research for solid-state batteries is in a very advanced stage and this promises even greater efficiency.
Charging Infrastructure: The technological advancement and developments, the establishment of fast charging networks like Tesla’s Supercharger, and many public charging stations have relieved “range anxiety.”
Electric vehicles Charging Points.
Integration with Renewable Energy: The electric vehicles can be linked with renewable energy sources like solar or wind power, which strengthens the sustainability impact.
Environmental Impact:
Reduced Emissions: There is no tailpipe in electrical vehicles as there is no combustion of fuel in the system. Hence, the EVs emit zero tailpipe pollutants, and no air pollution and CO2 emission.
Recycling and Waste: With the increase in the adoption and use of electric vehicles, the recycling and the waste management of batteries are becoming critical.
Current Challenges:
Initial Cost: Despite various tax rebates and price cuts, electrical vehicles are still a costlier affair as compared to traditional gasoline vehicles. However, this is often counterbalanced by lower operating costs.
Energy Sources: The energy sources to charge the batteries of electrical vehicles are either from the coal-burned power plant or from other non-renewable sources. Here the environmental benefits decrease, as these sources create pollutants.
Range Anxiety: This is the major concern of the range; an electrical vehicle goes on a single charge. Many consumers are definitely thinking before going for an electrical vehicle, about how far it will go in a single charge of the battery.
Production Footprint: The manufacturing of batteries for electrical vehicles left a remarkable footprint on the environment.
Future Potential:
Autonomous Driving: There is a belief that the electrical vehicle is tangled with self-driving technology.
Integration with Smart Grids: The electric Grids are becoming smarter and more connected, the electrical vehicles can be used to store or even feedback energy during peak times.
New Markets: With the improved technologies and the better infrastructure, Electric Vehicles have more potential to penetrate the automobile market.
Policy and incentives: In the US, Europe, India, and almost everywhere the governments are giving Tax rebates and other discounts to promote the adoption of electrical vehicles and targeting to phase out internal combustion engine-operated vehicles.
Conclusions:
Electric vehicles can provide a very promising and reliable path to a sustainable future. With the technological growth and drop in purchase prices with the help of government rebates, the common consumers of the sensible society are attracted to EVs. In the global effort towards a sustainable future and pollution-free environment, electrical vehicles will be the major player in the worldwide effort. Whereas Challenges continue, the collective push from industry, policymakers, and consumers suggests a right and electrified road ahead.
Below is the list for all the Top automaker’s first electric vehicles :
Cadillac Lyriq Electric Vehicles:
Even though Cadillac does not now have any Electric Vehicles in production, in five years they will probably make up half of the lineup for the GM luxury brand.
The Lyriq, which was scheduled to go on sale in 2022. GM will use the BEV3 platform, which will also be used for upcoming Cadillacs, Buicks, and Chevrolets, for the first time in this car.
Chevrolet S-10 Electric Vehicles:
The S-10 EV was derived from the second-generation Chevrolet S-10 pickup truck.
To some extent predating a similar variety of the Ford Ranger, the S-10 EV had front wheels driving electric motors. It was introduced for the EV models of 1997, again little updated for 1998, and then obsolete after very few models had been sold.
Citroen AX Electrique, Electric Vehicles:
In December 1993, Citroen AX Electrique come into production, after experimenting with electric vehicle versions of the Visa-based C15 and larger C25 panel vans.
Moreover, just after producing only 374 vehicles, production ended in 1996. The next model Saxo replaced the car from the market. Citroen also introduced the Berlingo Electrique van in 1997.
Dacia Spring Electric Vehicles:
Renault subsidiary Dacia’s first Electric Vehicle was the spring, introduced in 2021. It is a small hatchback car like the Renault KWID budget car and the electric Renault City K-ZE.
While most Dacia’s are mass-produced in Romania, the Spring is built in China, like the City K-ZE. Currently, it is not on sale in the UK.
Fiat Panda Elettra:
To produce an electric version of the first-generation panda, Fiat collaborated with the Austrian company Steyr-Puch. As this was designed mainly for urban use, its top speed was only 43mph.
The Panda Elettra was manufactured from 1990 to 1998. From 1992 to 1996, Fiat sold Cinquecento Elettra in commitment to electric vehicle display.
Ford Ranger EV:
Similar to the Chevrolet S-10, the Ford Ranger electric vehicle was a pickup truck. And the basic difference between the two was that Ford’s electric motor and driven wheels were at the rear rather than the front.
In the year 1998, Ford started the production of the Ranger EV and produces around 1500 electric vehicles until 2001.
General Motors EV1:
The first electric vehicle designed and manufactured by General Motors was EV1. This electric vehicle was produced from 1996 to 1999 and was offered to customers on a lease basis only.
Latter all the vehicles were recalled and scrapped.
Honda EV Plus:
In 1998, Honda started very serious research to produce its electric vehicles, and after research for nine years, the EV Plus was launched. The EV Plus was a small hatchback car with a top speed of around 80mph.
Honda stopped its production in 1999, after producing around 300 vehicles, and introduced its first generation petrol-electric hybrid insight.
Hummer EV Pickup:
The first electric vehicle by Hummer will be the Hummer EV Pickup with a maximum power output of 1000bhp. Hummer has re-established as a sub-brand within GMC, and there is no plan ever again to build anything with internal combustion engines.
Hyundai BlueOn:
In the year 2009, at the Frankfurt show, the electrified version of the Hyundai i10 city car, BlueOn was revealed.
Hyundai’s first electric model was never sold to the public and was only supplied to several South Korean government agencies.
Jaguar I-Pace:
Jaguar’s first, and so far only, electric vehicle, is I-PACE. However, in 2021, Jaguar assured and gave a commitment in public to making nothing but Electric Vehicles from 2025. The I-PACE is a high-performance electric crossover and won the two most prestigious awards, the 2019 World and European Car of the Year awards.
Kia Soul EV:
In the year 2014, Kia produced a compact crossover with the name Kia Soul EV. Moreover, the second-generation version came to public in the year 2018, in the Los Angeles Show.
This Korean company has also transformed the larger Niro into an electric vehicle. In the year 2021, its first model EV6 was designed to be the purely electric version.
Mercedes Electrique:
In the year 1906, Mercedes introduced its first battery-powered electric vehicle Mercedes Electrique and the hybrid Mixte. There were several forms of Electrique including a passenger car for Emperor Franz Josef I of Austria and a truck for the Berlin fire brigade.
MINI E:
In the year 2009, the MINI E was developed and produced as the MINI hatchback. A very extensive field-testing campaign was conducted in US, UK and Germany in the first phase and later in the next phase, the testing was conducted in France, Japan, and China.
However, the first MINI Electric available for the public was MINI Electric and MINI Cooper SE.
Nissan Tama:
Nissan Tama was the first electric vehicle launched in 1947 by the Tokyo Electro Automobile Company. This vehicle was considerably smaller than today’s Nissan Micra, and the top speed of Tama was 22mph with a range of 40 miles.
Later on, Tokyo Electro Automobile company became Prince and was then merged with Nissan in 1966.
Opel Elektro GT:
The Opel Elektro GT sports car was the first off-version electric car from Opel. This EV was giving an output power of 160bhp developed by two electric motors. This was a modified version with aerodynamic improvements, low-resistance tyres and stronger suspension springs. As due to onboard batteries, the car becomes 1700 kg in weight, which was approximately two standard GTs, so a heavy and stronger suspension spring system was very necessary.
In May 1971, the Elektro GT set a total number of six world records for the speed of electric cars over two days at Hockenheim.
Peugeot VLV:
The Peugeot VLV was a light-town electric vehicle. It was a two-seater car and was introduced during the Second World War. The production of Peugeot VLV was started in June 141 at Paris and ended in February 1943 just after producing 373 units only.
Polestar 2:
Polestar was a racing car under the racing team Cyan Racing and was developed under Volvo production cars.The first Volvo electric car was a petrol electric hybrid car and was launched in the year 2017.
Its second version all electric vehicle polestar 2 was launched in 2020 and was build in China.
The coming version Polestar 3 electric SUV will be manufactured in south Carolina, USA.
Porsche P1:
Porche’s first electric vehicle was launched in 1898 with the name Egger-Lohner electric vehicle, C.2 Phantom model. After many decades, in 2014, it was again recovered and placed in Porsche Museum.
Renault Celtaquatre:
Until the year 2011, Renault never manufactured electric vehicles for public, but from 1937, there is a history for Renault as an Electric vehicle manufacturer.
During an event of world fair Renault built 35 taxis on the chassis of its 1.4 litre petrol engine Celtaquatre family car by replacing the petrol engine through electric motors.
Skoda EV truck:
In the year 1930, Skoda manufactured its first electric vehicle an electric truck. The truck had a cargo load of up to 03(Three) tonnes and an aerodynamic front.
In 1990s, skoda manufactured its first battery powered passenger electric car named Eletra151.
Smart fortwo ed:
In the year 2007, the subsidiary of Daimler created its first EV. A total number of 100 vehicles were made available for field testing in London and were used by the Metropolitan Police.
Tesla Roadster:
Tesla is the manufacturer sole electric cars, they never built any other cars. Roadster was the Tesla’s debut model manufactured from 2008 to 2012 and this was based on the series 2Lotus Elise.
Toyota RAV4 EV:
Toyota is more concentrated on hybrids and hydrogen fuel-cell vehicles rather than battery electric cars. However, Toyota produces electrified versions of its first and second-generation RAV4 SUV. From 1997 to 2002, a total number of 1484 units were sold or leased in the US.
Vauxhall Ampera:
The Ampera was rebadged of the first generation Chevrolet Volt. This version was also sold in continental Europe with the name Opel Ampera.
Volkswagen Elektro-Transporter:
In the year 1972, Volkswagen manufactured and launched its second-generation Transporter with the name Electro Bus or Elektro-Transporter.
The top speed of this vehicle was 43 mph and was able to achieve this in 30 seconds.
The range of this vehicle was only 25 miles, and over a period of years it manufactured 120 units.
Volvo C30 Electric:
In a press release of 2020, Volvo described its first electric vehicle namely XC40Recharge Pure Electric. This variant was the improved version of the C30 hatchback Electric.
The C30 electric was in the market from 2011 to 2013.
Conclusion:
The fossil fuel is depleting gradually and also the use of these fuel in a huge amount is a threat for the environment. The increasing number of vehicles globally is releasing large amount of toxic gasses in the environment and this is one of the major cause of global warming.
In this view every automakers are working to develop an alternative fuel vehicles. In this regard the major automakers had already done many researches and even produced many good results. Almost every major vehicle manufacturers have produced their electric vehicles or hybrid vehicles. some has given a very good result and their vehicles are already running on the road.
If price was the only thing stopping you from buying an electric vehicles this summer, it is time to look again. With smart planning, you can even get the government to pay for part of it with EV tax credits.
Federal EV tax credits are just one factor driving a buying boom this summer. Some cars and trucks also qualify for a state rebate or tax credit. Together, those incentives could cut as much as $15,000 off the price of a new EV. And falling prices and a surge in new models of electric vehicles combine to make this big-ticket purchase less of a splurge.
Adding to the good news, General Motors (GM) just announced in its second-quarter earnings report that it has decided to reverse an earlier decision to end production of the very popular Bolt EV and EUV. GM CEO Mary Barra said GM would reintroduce a new Bolt EV soon, powered by Ultium battery technology. The Bolt has always been one of the most affordable EVs. The Bolt’s MSRP was cut this year to as low as $27,495.
This confluence of financial carrots is why analysts expect record demand for EVs this summer. That will help EVs crack the key level of 10% of all new auto and truck sales in the U.S. later this year.
But do you know how to maximize your electric cars or Electric Vehicles tax credits?
Summer Boom in Electric cars Sales
Electric car sales in the U.S. are already strong. The U.S. ranks third globally in EV sales, after the China EV market and Europe. The U.S. market climbed 55% in 2022, reaching a sales share of 8%, according to the latest Global EV Outlook from the International Energy Agency.
This summer’s popularity of EVs is forceful enough to shift the entire economy. Changes ahead for the global auto industry have major implications for the energy sector, the IEA says. And the electrification trend could reduce the need for 5 million barrels of oil a day by 2030.
IEA Executive Director Fatih Birol said, “Electric vehicles are one of the driving forces in the new global energy economy that is rapidly emerging, and they are bringing about a historic transformation of the car manufacturing industry worldwide.”
EV prices are falling so fast, they’re no longer just a luxury. Kelley Blue Book said last month that the average U.S. price of an electric vehicle in May was $55,488, down from almost $65,000 a year ago. Sales are increasing as prices decline, with May up 4% over April. “April’s downward movement of EV average transaction prices reflects EV automakers, particularly Ford (F) and Tesla (TSLA), seeking a balance between pricing and profitability,” said Michelle Krebs, executive analyst at Cox Automotive.
Electric Vehicles Prices, Tax Credits Power the Switch:
However, lower sticker prices only tell part of the story. U.S. car buyers enjoy other solid incentives to switch to an electric vehicle. They include a federal income tax credit of up to $7,500 for some new EVs. In addition, do not forget added rebates and other benefits from state and local utilities.
While this nest of incentives sounds complicated — and it is — it is also worth thousands of dollars in savings. It is worthwhile to check out eligibility and available perks when shopping for an EV.
Promoting clean energy use was just one facet of 2022’s Inflation Reduction Act. The IRA extended federal EV tax credits for another decade and included eligibility for used EVs. However, it also added complex restrictions such as a price cap, income limitations and final assembly rules.
If you took delivery of a new clean vehicle on or after April 18, 2023, it must meet critical mineral and battery component requirements to qualify for the credit.
If drivers have been reluctant to buy an EV because of high prices, another break is coming. Starting in 2024, taxpayers can transfer the EV tax credit to the dealer at the time of purchase. That will lower the price of the vehicle by the qualifying credit amount.
Who Qualifies For the EV Tax Credit:
You may qualify for an EV tax credit of up to $7,500, according to the IRS, if you buy a new, qualified plug-in EV or fuel cell electric vehicle. The credit is available to individuals and their businesses. To qualify, you must buy it for your own use, not for resale, and use it primarily in the U.S. In addition, your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly or $225,000 for heads of households. The AGI limit is $150,000 for all other filers.
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. As long as your modified AGI is below the threshold in one of the two years, you can claim the credit. The credit is nonrefundable, so you cannot get back more on the credit than you owe in taxes. Moreover, you cannot apply any excess credit to future tax years.
Vehicles placed in service April 18, 2023, and after must meet all of the criteria listed above. And they must meet new requirements for critical mineral and battery components for the buyer to get an EV tax credit of up to:
$3,750 if the vehicle meets the critical minerals requirement only.
$3,750 if the vehicle meets the battery components requirement only.
$7,500 if the vehicle meets both.
Which New Electric Vehicles Qualify For EV Tax Credits:
#However, that is not all. To qualify, a new vehicle must:
Have a battery capacity of at least 7 kilowatt-hours.
Have a gross vehicle weight rating of less than 14,000 pounds.
Be made by a qualified manufacturer.
Undergo final assembly in North America.
Meet critical mineral and battery component requirements (as of April 18, 2023).
#The sale qualifies for the tax credit only if:
The seller reports required information to you at the time of sale.
The seller reports your name and taxpayer identification number to the IRS.
In addition, the vehicle’s manufacturer suggested retail price (MSRP) cannot exceed:
$80,000 for vans, sport utility vehicles and pickup trucks.
$55,000 for other vehicles.
MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer-installed options, accessories and trim but excluding destination fees. It is not necessarily the price you pay.
You can find your vehicle’s weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle’s window sticker.
#Used EVs Can also Qualify,
While these rules apply to EV credits for new electric vehicles, Congress threw in another carrot. If you buy a qualified used EV or fuel cell vehicle from a licensed dealer for $25,000 or less, you may be eligible for a used EV tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. The credit is nonrefundable, so you cannot get back more on the credit than you owe in taxes. You cannot apply any excess credit to future tax years.
The EV Lease Loophole:
Last year’s IRA placed some new and significant limits on which vehicles qualify for the EV tax credits. The EV has to be built in the U.S., Canada, or Mexico; the battery cells must use minerals from a specific list of countries; and the cells and packs have to be made in the U.S. However, buyers can get federal tax credits for models not on the list allowed by the Inflation Reduction Act if they lease them.
In the IRA, Congress exempted commercial vehicles from the restrictions. While “commercial” is a term usually applied to vehicles like heavy-duty trucks, the Treasury Department defines leased EVs as “commercial” vehicles. Any leased vehicle may qualify for the tax credit because the North American battery-content and manufacturing rules do not apply to commercial vehicles.
When a dealer buys a vehicle and then leases it to a driver, the Treasury says that is a commercial transaction because the driver does not take title. This means the dealer or the finance company holding the lease receives the tax credit. Industry representatives and carmakers say the EV tax credit will help lower the price of leases and increase incentive programs. According to Edmunds, leases reached 34% of total EV sales in March, up from just 18% in March 2022.
“A number of lenders … have offered lease incentive programs. Everyone I have seen has offered it at the full amount,” Andy Koblenz, executive vice president for legal and regulatory affairs at the National Automobile Dealers Association, said at a Federal Reserve Bank of Chicago webinar on EV tax credits. “We’re starting to see it in the marketplace already.” Incentive programs may increase as leasing “will be an attractive way to help get the EVs into the market.”
State EV Tax Credits and Electric Vehicle Rebates:
Some states offer credits or rebates on EV purchases or leases, while utility companies may offer breaks on home charger installations.
Colorado, for example, offers EV tax credits ranging from $2,000 to $8,000 on EV purchases. California’s Clean Vehicle Rebate Project provides rebates from $1,000 to $7,500 for the purchase or lease of new, eligible zero-emission vehicles.
Oregon’s Clean Vehicle Rebate Program is not a tax credit but rather a cash rebate of up to $7,500 on any qualifying purchase or lease. Oregon’s generous rebate program is so popular — it’s handed out $70 million in the past five years — that it is almost out of money and was paused this year. Lawmakers and nonprofits in the state are working to replenish the program’s funding. The Department of Energy’s Alternative Fuels Data Center provides updated state-by-state information on rebates and incentives.
Get Your Federal EV Tax Credit:
If your head is spinning from all the rules but you want to maximize your EV tax credit, Investor’s Business Daily did the work for you. The table below includes all 24 vehicles that qualify for the full $7,500 credit when placed into service on or after April 18, 2023.
It also shows an additional 10 vehicles that qualify for a credit of $3,750. See all the details for various levels of EV tax credits at fueleconomy.gov.
Cars and Trucks That Qualify For The EV Tax Credit:
At present Lucid Air is offering the longest range of battery electric cars in the market. As per EPA (Environmental Protection Agency) estimates the present range is 516 miles in one go.
The new Toyota cars will come with solid-state battery technology and this will allow them to go 745 miles between charging stops. And also this will be charged to its full capacity within only 10 minutes.
Many automakers are working on future electric vehicle battery technologies for cell composition, range, and recharging capabilities.
Presently battery electric vehicles(BEVs) are using either lithium-ion or nickel-metal hydride composition. These batteries are basically heavy and very large in size and because of huge in size and weight, they acquire most of the space between the wheel on the chassis of the car.
Solid-State Battery for electric cars:
Solid-state batteries are the next leading-edge revolution in the field of electric vehicles. They offer incredible commitment, however, they’re not yet good to go.
A typical 3D pictorial View of a Solid-State Battery Cell
An automotive reporter John Voelcker told Newsweek that “For some time now the solid-state battery cell technology is really a Holy Grail, many different engineers, and researchers are working to make it sufficiently practical, scalable, and affordable to be used in production vehicles.”
Traditional batteries like lithium-ion and nickel-metal hybrid contain liquid or polymer gel electrolytes. All the different companies generally use different parameters and chemistry to get the optimum results for their brands.
Solid-state batteries are designed to be more energy dense having solid electrolytes and solid electrodes. These are smaller in size and carry less weight, so these factors will give more range for Battery electric vehicles.
R&D for Solid-State Cell Battery:
The Solid–state technology is not very new but its mass-scale application for automobiles is obviously new. In the year 1990s, the researchers & scientists of Oak Ridge National Laboratory created a new class of solid-state electrolytes, which comes to the notice of auto industries.
All the leading vehicle companies like Mercedes-Benz, BMW, Toyota Motor, Ford Motor, Volkswagen Group, Nissan Motor Company, and others have either currently started or are willing to start putting resources into the research & development of solid-state battery technology. And many others have associated with energy innovation companies to work toward their development goals.
A number of issues have to solve by the automakers and the battery makers before they come to the market like the installation of charging infrastructure to support high voltage fast charging ability.
“In some ways, the capability to charge more rapidly and the robust infrastructure to support that ability is more critical than attaining 700-plus miles range. The charge time and range claims complement each other. And the infrastructure and the charge time are the main elements that consumers talk about and question today. If the questions of ‘Can I safely and securely charge when I need to and how long will it take?’ can be answered in a way consumers trust, the range question becomes a bit less critical.”
A self-imposed deadline by many automakers is of the year 2030 or 2035 to become an all-electric manufacturer. Others are promoting their capacity to be climate neutral by 2050 or before, which is a term used to describe a sustainability focus throughout the development, manufacturing, and useable lifecycle of a vehicle, and beyond.
These initiatives include the use of solid-state batteries. Though, this does not indicate that the upcoming batteries will completely swap the cars of today. The architecture of contemporary EVs and the infrastructure for charging them are similar.
According to Chad Kirchner, vice president of content at EV Pulse, “new charging hardwires will probably be needed to take full advantage of the increased charging speeds of solid state, but future vehicles should be backward compatible with current hardware, especially with the adoption of North American Charging Standard (formerly known as the Tesla charging connector) by most automakers.”
“There might be a time in the upcoming years when the upgrading is compulsory, but it won’t be instant & overnight. This is particularly true when new vehicle possession is a decade or furthermore at a time.”
Tesla Model Y at a Supercharger. TESLA
According to a report by S&P Global, now, most car owners keep their vehicle for a little more than 12 years, and a decade ago, the average ownership was approx. 9.7 years.
Mr. Voelcker, an automotive reporter, said, “While it’s practical to expect solid-state cells to perform in limited use by the close of this decade, it’s worth noting their checkered trajectory to date within one of the biggest, most respected, and most profitable car companies on the planet,”
To date, no actual solid-state cells have appeared so far, and expected to see them maybe around 2030.
“A more extensive change from a gas-powered motor overwhelmed market to an EV-ruled market not entirely settled by any a single turn of events or innovative leap forward. Longer reach and quicker charging times are significant, yet the foundation and buyer costs are additionally basic. The significance of Toyota’s declaration is that it is one more step along the way — and each step counts,” Brinley said.
Conclusion:
To date, all the electric vehicles are running on traditional batteries i.e. either lithium-ion batteries or nickel-metal hybrid batteries. And this battery system gives a maximum of 450 -500 miles on one charge approx.
The Solid-state batteries are designed to be more energy dense having solid electrolytes and solid electrodes. These are smaller in size and carry less weight, so these factors will give more range for Battery electric vehicles.
So the future is of all-electric vehicles and many manufacturers are doing various R&D to come up with more effective & efficient vehicles for the future.
Kentucky in the U.S., where the automotive industry carries on to lead the way, from producing the Ford Super Duty vehicles to leading the nation in EVs(electric vehicles) related projects.
In a news release, Gov. Andy Beshear said; “This is an unbelievable update that now Kentucky will be the center of the battery electric vehicle division,”.
New Lexus ES 300 Hybrid & RAV4 Hybrid at Georgetown Kentucky plant
Kentucky in the U.S., where the automotive industry carries on to lead the way, from producing the Ford Super Duty vehicles to leading the nation in EVs(electric vehicles) related projects.
In a news release, Gov. Andy Beshear said; “This is an unbelievable update that now Kentucky will be the center of the battery electric vehicle division,”.
Why is the new Electric Vehicles car Toyota making in Kentucky?
Toyota selected Kentucky because it was the first stand-alone plant of Toyota Motor in America. So, Kentucky is the home place for Toyota in manufacturing.
Already, Toyota has a plant in the U.S. with a capacity to produce nearly 250,000 small cars a year, through NUMMI (New United Motor Manufacturing Corp.), a joint-venture company with General Motors Corp., where subcompact Nova passenger cars are being produced.
Now, the independently owned Toyota site will be in Kentucky, Georgetown. Here in this new plant, Toyota is expecting to produce 200,000 cars a year.
This is not a surprise that, Toyota announced to start building cars on its own in the United States.
Since 1st April 1981, Japanese automakers are laboring under “voluntary” import quotas. This Voluntary import quota system restricts to held their shipments to the American market down to a sanctioned limit of 1.68 million cars a year. Eventually, that upper limit was lifted to 1.85 million units, and last year it was retained at almost 2.4 million cars a year.
In the United States, many other automakers from Japan had already a foothold in that market and they have already profited significantly as a result of those limitations, they may have charged higher prices as of restricted product availability.
But the Japanese be afraid that they would miss the more important battle for U.S. market share if they could not get around the quota allocations, or if they were forced, because of growing protectionist sentiments in this country, to work under even more severe restrictions.
Another route to a bigger market stake was to manufacture the cars where they are sold.
What new Electric Vehicles or car is Toyota making in Kentucky?
This vehicle is Toyota’s first U.S.-built all-electric SUV. It will be a three-row SUV.
James burley works on the assembly line at the Toyota Motor Manufacturing, Kentucky plant in Georgetown, U.S. Courtesy-ED Reinke, Associated Press.
Susan Elkington, the president of Toyota Kentucky, told; “We have already seen that the three-row SUV market has an expanding market, and the trend is changing towards electrification of the products and people are switching more to electrification.”
In support of SUV production in Kentucky, Toyota has announced to invest $2.1 million for new infrastructure in its North Carolina battery manufacturing plant.
Toyota has already announced in the year 2021, to invest approx. $461 million in Kentucky factory to build bigger and more battery electric vehicles by the year 2025.
Elkington said Toyota was capable to carry on production in the Commonwealth while adapting and updating the capacity over the last few years to get ready for the launch of the all-electric SUV.
Elkington told, “In fact, our journey here in Kentucky has occurred over several years before now”. “We are creating the compulsory modifications and also enduring existing manufacture, which saves the employment of all our associates.”
What is a Battery Electric Vehicle?
A Toyota Car in the drive way at Toyota Motor Manufacturing Kentucky plant at Georgetown.
Ted Ogawa, CEO and the president of Toyota Motor conveyed a message that “We are committed to reducing carbon emission as much as possible and as early as possible”. Switching to battery-electric vehicles is the probable way to achieve this goal of a cleaner and greener planet and the surroundings.
What is Toyota Motor Manufacturing at Kentucky?
Toyota Kentucky President Susan Elkington celebrates with employees after announcing the facility with assemble Toyota first Battery Electric Vehicle in U.S. Toyota Motor.
Toyota explained that the Kentucky plant was opened 37 years back and since then the company has already invested more than $8.5 billion.
Bashear of Toyota Motors said that, In the commonwealth, Toyota was a vital part of the automotive industry and now the company is positioned to help lead us into the further.
As per the press release from the Governor’s office, the Battery Electric Vehicle SUV project is a part of the Toyota commitment for a $591 million future project at the Georgetown site.
For Toyota Motors in Kentucky, the Kentucky Economic Development Finance Authority sanctioned a performance-based incentive. The contract can make open up to $240 million in cumulative tax benefits
based on the company’s total collective investment of nearly $2.8 billion across projects with a yearly job goal requirement of up to 8,950 over the period of the contract. If Toyota meets the requirements, the company will be qualified to keep a portion of the new tax income it creates.
Conclusion:
Toyota Motor Company is ready to start its battery electric vehicle manufacturing at its already built-up and running plant in Kentucky.
It is expected to produce its BEV SUV from the start of the year 2025.
Ted Ogawa, CEO and the president of Toyota Motor conveyed a message that “We are committed to reducing carbon emission as much as possible and as early as possible”.
As per the press release from the Governor’s office, the Battery Electric Vehicle SUV project is a part of the Toyota commitment for a $591 million future project at the Georgetown site.
For Toyota Motors in Kentucky, the Kentucky Economic Development Finance Authority sanctioned a performance-based incentive.
The contract can make offer up to $240 million in cumulative tax incentives based on the company’s total collective investment of nearly $2.8 billion across projects with a yearly job goal requirement of up to 8,950 over the period of the contract. If Toyota meets the requirements, the company will be qualified to keep a portion of the new tax income it creates.
Ford said that the agreement with the Electric Vehicles giant Tesla will increase the number of fast chargers by more than double available to the owners of Ford EVs such as the F-150 Lightning and Mustang Mach-E, Ford said.
BILL PUGLIANO|GETTY IMAGES
To expand the electric vehicle charging infrastructure for U.S Electric Vehicles Customers, the major electric car manufacturer Ford has announced that they are teaming with the Top EV giant Tesla to help in expanding the supercharging fast charging Network.
From the start of the year 2025, Ford will also provide built-in connectors on its electric vehicles and then the owners of Ford EVs will not require to carry a special adapter to use the superchargers.
A TESLA SUPERCHARGER STATION WITH A FORD F-150 LIGHTNING PICKUP.
FORD MOTOR COMPANY
To have the Supercharging continently, Ford said its EVs will be provided with a special adapter to allow them to use the Superchargers. Starting in 2025, a connector developed by Tesla will be built into new Ford EVs, the company said.
NACS (The Tesla North American Charging Standard) connector on Ford EVs fitted with a Combined Charging System (CCS) port will allow the vehicles to be used with Tesla V3 Superchargers.
This will be a very “smaller and lighter” connector to provide “a superior experience for customers.”
Ford Spokesperson told that they have made an agreement, that will give Ford Electric vehicle owners access to the Tesla Supercharger network starting in the spring of the year 2024.
In an announcement, Mr. Jim Farley, the CEO & president of Ford told that this agreement will double the number of fast charging stations in the U.S and Canada for the owners of Ford electric vehicles including the Mustang Mach-E, E-Transit, and F-150 Lightning Pickup.
Currently, near about 10,000 fast –chargers are available through the Ford Blue Oval Charge Network, and more than 12,000 superchargers will be added under the new agreement with the EV giant Tesla.
Conclusion:
The market for electric vehicles is growing and with this battery charging stations and facilities are of prime importance. For the supercharging of EV batteries Tesla has already setup approx. 12000 such stations through out in U.S, and the other EV manufacturers are trying to join hand with tesla to grow the market of electric vehicles throughout the united nation. And in this view Ford has signed an agreement with the EV giant Tesla.
