Average Transactions Between EV and ICE Vehicles Reveals Price Parity

Automakers are trying to achieve price parity between EV and ICE vehicles. This is a key objective so EVs become more attainable to buy. Price parity would help consumers who are interested in EVs. Kelly Blue Book's (KBB) November average transaction price data for new vehicles shows that we are moving slightly in the right direction. In 2024, certain EVs will lose the federal tax credit.

The industry average transaction price (ATP) for every type of vehicle was $48,247. The new EV average transaction price (ATP) was $52,345, or 8.5% more expensive. November had the highest incentive for EVs at 8.9% of the average transaction price (ATP). Last year, EV incentives were less than 2% of the ATP. Kelly Blue Book (KBB) has not revealed all vehicles' average transaction price (ATP). Hybrids/alternative-powered cars had an average transaction price of $49,680.

The Director of Strategic Planning at Cox Automotive, Stephanie Valdez-Streaty told Inside EVs: "In recent months, price parity between EVs and ICE has almost seemed possible. It is a complicated measure with plenty of variables, but newer products and higher discounts have brought down average EV prices, even before potential tax incentives. A year ago, the EV premium was more than 30%. Today, it's less than 10%."