Global Electric Vehicle Prices Fall Below Hybrid Costs as Chinese Models Expand

TOKYO — In 2025, the average global price for electric vehicles (EVs) dropped below that of hybrid vehicles. This shift is largely attributed to the decreasing cost of batteries and the expansion of low-cost Chinese EV manufacturers, such as BYD, into emerging markets. These companies benefit from economies of scale, enabling them to offer more affordable electric cars and accelerate EV adoption worldwide.

Chinese automakers have made significant inroads in emerging markets by providing competitively priced EVs, contributing to the global trend of EV prices undercutting hybrids.

Sources:

• Nikkei Asia, "Global EV prices drop below hybrids as low-cost Chinese cars spread," August 7, 2026