Why Are EV Prices Only Coming Down Now? The Answer Is More Political Than You Think - CleanTechnica

The article from CleanTechnica explains why electric vehicle (EV) prices have only recently started to decline, despite significant reductions in battery costs over the past several years. Between 2020 and 2024, average battery electric vehicle (BEV) prices actually rose by about 13%, driven largely by automakers’ strategic focus on larger, premium EV models that yield higher profits. This shift was facilitated by the absence of stringent EU CO₂ targets during that period, allowing manufacturers to prioritize margin maximization over affordability and volume growth. Consequently, although battery costs dropped, BEV prices increased as the market skewed toward more expensive vehicles. The turning point came in 2025 with the enforcement of new, binding EU car CO₂ targets. These regulations compelled automakers to pivot their strategies toward increasing BEV volumes and accelerating the release of more affordable electric models, resulting in an average price drop of about 4% (€1,800). Despite a continued trend toward larger vehicles, the regulatory pressure