GM and Honda partner on sub-$30K electric cars in a push to bring EVs mainstream
Got my (electric) driver's license last week... but these two won't be driving alone past your street. Honda and GM are teaming up to develop EVs for under $30K — even cheaper than GM's upcoming $30K electric Chevy. EVs at those prices are virtually unheard of, but GM and Honda want to start cranking out millions by 2027.
- Plugged in: The compact SUVs will use GM’s next-gen Ultium battery tech that’s the base for its electric Hummer. GM says Ultium can get up to 450 miles/charge at 40% less cost than its current batteries.
- Partnered up: The collab will yield new EVs for both GM and Honda, expanding on their existing electric partnership (GM already made two EVs for Honda).
Chev-EV... As policymakers and consumers lean into green tech, GM, VW, and other gassy OGs are investing billions in an electric future. Even Honda, which has focused more on hybrids, is pivoting to all-electric. Two ways to gain an edge over industry leader Tesla: de-luxify EVs and boost battery range.
- Price anxiety: EVs are still much pricier than their gas cousins. A new electric model costs $60K, on average — $15K more than new cars generally.
- Range anxiety: Road trips can be sweat-inducing when you’re far from a charging station, while gas pumps populate every exit.
Priced out = iced out… EV makers are still iced out by consumers, because they’ve priced out consumers. Despite increasing adoption, fewer than 1% of the 250M cars on US roads are electric. Most Americans aren’t ready to buy an EV yet, citing price as a main concern. A recent Axios poll found that 7 in 10 young adults would buy an EV if they could afford one. By developing lower-priced EVs at scale, GM and Honda could tap into an iced-out market.