EV Wars: Why can’t US automakers produce EVs for under $30K?

When I was growing up, we always had a Chevy station wagon parked out front. My mother had us four kids and our dog, a Lassie-look-alike collie named Timmy, to haul around. She came home from her weekly grocery runs on Monday afternoon with practically every seat, front and back, packed with paper bags. 

During our college years, Mom downsized to mid-sized sedans – a Volvo she hated and then a Ford Taurus she tolerated – eventually going compact. Her last car was a Chevy Aveo (launched in 2004, discontinued in 2011).

All of which is why I have this admittedly old-fashioned idea that the only reason one should have a large car, like an SUV, is because you have appropriate things to put in it –  kids, other family members, animals, groceries or professional supplies and equipment. 

I don’t, so I have always driven relatively small sedans, which cost less, use less gas and can turn on a dime. I know Americans have many good reasons for buying SUVs, but the current obsession with these cars is at least part of the reason sales of U.S. EVs continue to struggle. 

With their focus on short-term profit, U.S. automakers have almost exclusively produced higher-priced electric SUVs and pickups, rather than more affordable, smaller models, including sedans. Besides the Tesla Model 3, the Ioniq 6 I drive is one of the few moderately priced electric sedans on the market (starting price, $37,850).

As a result, Chinese automakers have been able to dominate global markets with a range of high-quality, smaller and more affordable EVs, including crossover SUVs. These cars are available and selling well almost everywhere except the U.S., which has finally pushed American automakers to at least try to offer lower-priced EVs of their own. 

The big news this week has been Ford’s Aug. 11 announcement of its plans for a Universal EV Platform and Production System – billed as 21st-century equivalents of the company’s historic Model T auto and assembly line. The company is investing $5 billion in the effort, aimed at putting EVs “within reach for millions around the world.”

But, its eyes always on the short-term U.S. market, Ford’s first universal EV will be a mid-size electric pickup, expected to roll out in 2027, with a starting price of $30,000.

Similarly, General Motors grabbed a few headlines with its plans to, at long last, bring back its popular Chevy Bolt, also at a $30,000 price point. The caveat here is that early sightings of test models now being reported online are not the original compact Bolt, but the crossover “EUV.” 

Hyundai has also gotten some good press for its Inster, a cute, compact EV, which it is selling for $19,000 in Korea and $25,000 in Europe (see picture above). Even without any sales incentives, the car has quickly become the top-selling small EV in Germany, and Hyundai intends to follow up with future sales in the Middle East and the rest of Asia, but not in the U.S.

Odd market out

The Inster rollout is just one example of how the U.S. is increasingly the odd market out in global EV production and sales and is now further isolated by President Trump’s tariffs and political war on practically all forms of clean technology.

In China, EVs have recently edged out traditional gas-powered vehicles in new car sales. In Norway, Europe’s EV champ, battery-powered cars and plug-in hybrids now make up more than 95% of new car sales, according to the International Council on Clean Transportation. The average market share for EVs across Europe is 25%, but Denmark, Sweden, the Netherlands, Finland and Iceland all have passed 50%.

And wherever Chinese EVs enter emerging markets – for example, Mexico and Brazil – sales surge. Plug-in hybrids are leading the Brazilian market, with sales growing over 100% in May, while full EV sales were up a still-impressive 35%, according to Clean Technica. 

Why should we care about Chinese EVs in other markets? Trump and his Republican yes-men and -women in Congress took early aim at federal tax incentives for EVs as “mandates” cutting off consumer choice, finally killing them in the Big Beautiful Bill signed into law in July. But what global sales figures show, loud and clear, is that when consumers are given true choice — a range of EV models at reasonable prices, backed with an appropriate charging network — they buy them in increasingly large numbers.

The reason is simple: EVs are better than gas-powered vehicles. They are cheaper and easier to maintain — no gas, no oil changes — and way more fun to drive. And yes, they cut carbon emissions from the transportation sector, which, Trump et al. notwithstanding, remains the largest source of U.S. greenhouse gases. 

Decidedly iffy 

In other words, the problem with the American market is not so much that U.S. consumers don’t like or want to buy EVs. Rather, U.S. automakers have not consistently made EVs that consumers want to buy and can afford. 

The question now is whether the end of federal tax credits will be the spur needed to refocus the U.S. market on the vehicle quality, size and cost needed to get consumers into EVs, both in the U.S. and globally?

The record is decidedly iffy. Despite ambitious pledges to electrify their fleets, U.S. automakers did not launch their EV offerings with affordable models – with the exception of the original Chevy Bolt – and when sales of more expensive models did not meet their expectations, they quickly backtracked.

Ford is a case in point. In a sustainability report issued in April 2023, the company boasted that it was investing $50 billion worldwide between 2022 and 2026, “to develop and manufacture electric vehicles and batteries. The company is on the path to reach its targeted annual production run rate of 600,000 EVs by late 2023 and more than 2 million by the end of 2026. By 2030, half of Ford’s global vehicle sales volume is expected to be electric.”

In 2024, the company had only three fully electric models. It reported selling 285,291 EVs, but included both plug-in hybrids and standard hybrids in that total. It has repeatedly pushed back production of new and existing EV models, most recently delaying the launch of a new, full-sized electric pickup and an electric van until 2028. 

Whether Ford can deliver on its affordable, mid-sized pickup – as well as other affordable models that can compete in global markets – remains an open question.

On the other hand, GM’s success with its moderately priced Chevy Equinox EV, a mid-size SUV, seems a step in the right direction, while we wait for the Bolt. With a starting price of less than $35,000 for a basic, rear-wheel drive model, the car helped to boost GM’s EV sales to a new record – 19,000 – in July, according to a company press release. 

China’s EV siege

Right now, EV sales in the U.S. are up in general as prospective buyers who have been sitting on the fence rush to take advantage of the $7,500 tax credit before it disappears on Sept. 30. July EV sales topped 130,000, the second highest month on record, according to a CNBC report. 

The pent-up demand for affordable EVs can also be seen in sales figures for used EVs, which in June were up 51% year-over-year, according to industry analyst Cox Automotive. Significantly, after Teslas, the Chevy Bolt was among the top sellers. Leased EVs will feed the market, potentially making one million used, lower-cost EVs available by 2027. 

But the more important question here may be how long U.S. automakers can keep their Chinese rivals out of the U.S. market? American consumers are increasingly aware that geopolitical tensions — and Trump’s trade wars — are the main barriers between them and China’s sleek, high-tech and affordable EVs. 

Review videos of these cars are all over YouTube, where car geeks from Britain, Australia and New Zealand enthuse over models like the compact BYD Seagull, priced at around $20,000, which scored 1 million sales worldwide in 27 months. These cars are increasingly available in Europe and Latin America, laying virtual siege to the U.S.

American automakers have already lost significant ground to Chinese EVs in global markets, and someone, at some point, is going to find a way to slip these cars into the U.S., even if they have to pay a high tariff. U.S. automakers are under pressure and may not have a lot of time to come up with models that can compete on technology, style and affordability.

Price wars are likely ahead. Nissan is offering a $10,000 customer cash rebate on its Ariya electric SUV, good till Sept. 2, while Hyundai’s Ioniq 5, which is not eligible for the federal tax credit, comes with a $7,500 rebate. 

Further, Americans’ much-discussed range anxiety seems to be less of an issue in EV adoption as drivers make increasing use of the DC fast chargers found along U.S. highways. One factor here is the universal adoption of Tesla’s NACS plug as the industry standard, so more EVs can use the company’s fast-charging network.

Donald Trump and the Republicans may have won the skirmish over federal tax credits, but in the long run, they will lose the war on electric vehicles and the clean energy needed to power them. They don’t have a chance. Again, EVs offer better technology, a quiet, smooth ride and ultimately will be cheaper to own than gas-powered vehicles. 

Electric SUVs may lead the charge, but I’ll be holding out for my next electric sedan, with all the high-tech bells and whistles, for under $30K.