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Honda Says Lithium-Ion EVs Will Always be Expensive Than ICE Cars

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As electric cars continue to grow in popularity, purchase costs are beginning to become more on par with ICE vehicles – especially in Europe, where conventional cars with gasoline engines are being increasingly penalized. In some cases, electric cars are significantly cheaper than their ICE alternatives.

Related: Chinese NEVs Gaining Popularity in Jordan Amid Green Transition

For example, a Porsche Taycan costs roughly half as much as a Panamera in Norway. Meanwhile in France, a BMW i4 M50 is 35% cheaper than a less powerful M3 or M4. However, on the lower end of the segments, EVs are still considerably more than equivalent ICE cars. In Germany, a Volkswagen ID.3 costs at least €38,000 compared to a well-equipped Golf that can be had for €8,000 less.

So, why is it that entry-level EVs remain more expensive than their combustion-engine equivalents? Honda’s Vice President of Business and Sales for America, Dave Gardner, was recently quizzed on the matter and commented:

“We [Honda] don’t really believe that the current lithium-ion technology is the long-term solution. Solid-State batteries are going to be the game changer for us.”

Dave Gardner believes solid-state batteries will enable entry-level EVs to be priced “in the neighborhood of what a nice [ICE] vehicle costs.” However, he also admitted that solid-state batteries are still a while away and won’t be used on the brand’s upcoming Prologue crossover. That being said, Honda says it is committed to the development of solid-state batteries and has recently announced a $310 million investment in this area.

Honda’s first mass-production EV, the E city car, hasn’t been a great success from a sales perspective. Only 3,752 units were sold in Europe last year, despite targeted sales of around 10,000 units. Although Honda E received plenty of praise for its retro-inspired funky design and tech-laden interior, however its poor range of just around 210 km and €30k+ price has drawn criticism from many.

Undoubtedly, Honda will be hoping its upcoming Prologue electric crossover will sell better – even if it costs consumers more than a similarly equipped CRV.

Source: InsideEVs

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