General Motors offered up a rendering this week teasing the 2024 Chevrolet Equinox EV, an all-electric version of its popular SUV that it plans to bring in with a starting price of “under $30,000.”
The Equinox EV is one of 30 battery-powered models GM has promised to deliver by mid-decade, and its first to dip below the $30,000 mark. That could become a significant milestone not only for Detroit’s largest automaker but for the industry, as a whole, according to industry observers, beginning the process of expanding EVs into the mainstream of the U.S. market.
For now, GM isn’t offering up any details on the 2024 Chevy Equinox. It issued a terse twitter tease that said, “As the sun sets on winter, it’s time for a new beginning. The First-Ever All-Electric #ChevyEquinox is on its way.”
“A real pivot point”
The exact starting price, as well as powertrain specifications, remain to be revealed. Range could be one of the most critical. While there are a handful of EV models today delivering between 100 and 150 miles per charge – including the Mazda MX-30, Mini Cooper SE and a version of the Nissan Leaf – they have extremely limited appeal in the U.S. The vast majority of potential U.S. buyers say they want range pushing north of 200 miles per charge, Sam Abuelsamid, principal auto analyst with Guidehouse Insight.
“The current (gas-powered) Equinox is in one of the hottest market segments” in the U.S., said Abuelsamid. “If they can provide reasonable range at that price it will be a real pivot point for the industry.”
Today, there are only a few EVs priced in the $30,000-plus range right now that deliver a reasonable amount of range. One is the $31,500 Chevrolet Bolt EV which manages 259 miles per charge. The 258-mile Hyundai Kona EV starts at $34,000. You can get into a Nissan Leaf for as little as $28,425, but that model will yield only 145 miles. To get it up to 215 means you’ll spend $32,400.
EVs still too expensive for most buyers
Virtually everything new that has come out over the last year offering 200-plus miles pushes above – often well above – the $40,000 mark.
The Kia EV6 starts at $40,900, the Hyundai Ioniq 5 at $43,650. Ford gets $43,895 for the base Mustang Mach E and Volkswagen’s ID.4 with a single motor comes in at $40,760. (All prices excluding mandatory delivery fees.)
VW has signaled plans to launch a lower-cost version of the ID.4 once production begins at its updated Chattanooga, Tennessee assembly plant during the 2023 model-year. The German automaker has not provided details, but it’s expected to reduce range from the 251 miles per charge of the bottom-end ID.4 Pro model. While that might get it down to somewhere in the mid-$30,000 range, Abuelsamid foresees only modest demand if it drops below 200 miles.
Overall, today’s battery-electric vehicles tend to cost at least $5,000 more than comparable gas-powered models, and many add substantially higher premiums.
Closing the gap
The gap will narrow, said Carla Bailo, CEO of the Center for Automotive Research, as battery costs drop and lower priced models are added.
When GM introduced the industry’s first mass-market plug-in hybrid, the Chevrolet Volt, for the 2011 model-year, its lithium-ion batteries cost about $1,000 per kilowatt-hour. Throughout much of the company decade, automakers were uniformly losing money on products like the Volt, the Fiat 500e, and the Ford Focus EV because they couldn’t pass their full costs onto consumers.
By 2016, battery prices had come down sharply. GM President Mark Reuss confirmed that the automaker paid $145 per kWh for the cells in the Chevy Bolt EV.
The automaker is targeting $100 with the new Ultium cells that will be used in all of its upcoming battery-electric vehicles, including the Cadillac Lyriq that went into production last week.
Reaching price parity
The long-term goal for GM and the industry at large is $70 or under, some forecasting next-generation technology, such as solid-state batteries, could reach $50 per kWh.
By mid-decade, Bailo forecasts, “we’ll have parity” between the production costs of comparable gas and electric models. And that should be reflected in what consumers will be asked to pay.
How low might future EVs go? That’s far from certain, but GM is betting the 2024 Chevrolet Equinox will tap into an entirely new market for battery vehicles.
With close to 300 miles and 300 horsepower for about $30,000 would make quite the steel! Even without federal incentives.
I wouldn’t bet on 300 miles. A fair number of $50,000 EVs aren’t there yet. But something north of 200 would catch a lot of attention.
Paul E.
Probably quite a lot of aluminum and plastics, too.
“Under $30k”? Where did you see that? Press release said starting “around $30K”.
Hopefully it comes under 30k … it’s really looking great ..the future indeed.
30K and 250 miles of EPA range are the lines in the sand. Look good, we will see…