In the first quarter of 2024, electric vehicle prices have dropped significantly, with the top five most affordable EVs all selling for under $41,000. Two Nissan models, the LEAF and the Ariya, topped the list, followed by Hyundai’s IONIQ 6, Tesla’s Model 3, and Toyota’s bZ4X. These price reductions have been attributed to incentives and discounts, with average EV prices falling by 9% in the first three months of the year and 3.8% from the previous quarter. This decrease in prices has led to an increase in EV sales volume, particularly for key Tesla models according to Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive.
The Nissan LEAF was the most affordable EV in Q1, selling for $27,956, which is approximately 19% off its average transaction price. The Nissan Ariya, an electric SUV, was the second most affordable EV, selling for $35,556, 31% off its average transaction price. This surge in sales volume for the Ariya resulted in a 44.8% increase in sales in Q1, with 4,142 units sold. The Hyundai IONIQ 6 placed third on the list, with an average selling price of $40,547 and a discount of 22% off its average transaction price. The Tesla Model 3 and Toyota bZ4X rounded out the top five most affordable EVs in Q1.
Other automakers have also introduced significant discounts to remain competitive in the EV market. Ford reduced prices on its Mach-E by up to $8,100 in March and opened orders for the 2024 F-150 Lightning with up to $5,500 in savings on select trims. Volkswagen is offering a $13,000 discount on the 2023 ID.4 AWD Pro S, while Hyundai’s IONIQ 5 and Kona EV are also on sale with new incentives. BMW is providing rebates of up to $7,500 on 2024 EV models, and Kia and Genesis have introduced new $7,500 discount offers on select EVs.
Overall, the trend of decreasing EV prices and increasing sales volume is expected to continue as automakers strive to make electric vehicles more accessible to consumers. With the current discounts and incentives being offered, now may be the best time for individuals interested in purchasing an EV to start shopping. By taking advantage of these deals, consumers can find some of the most affordable EVs available on the market. This shift towards more affordable electric vehicles reflects a growing commitment from automakers to transition towards sustainable transportation options and reduce reliance on traditional gas-powered vehicles.
