The Future of Luxury Electric Vehicles: What Can We Expect in the Next Decade?

June 16th, 2023 by

Increased demand, economic incentives, and improved performance are expected to increase the viability of electric vehicles over the next decade. Many leading auto manufacturers have already announced plans to commit more heavily to electric vehicle production as well.

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A blue Audi e-Tron charging in a driveway.The number of electric vehicles sold each year has been steadily increasing for a decade. Electric cars are more common, and more accessible, today than ever before. In 2022, the sale of new EV models surpassed 10 million units for the first time. That number is expected to continue to increase dramatically in the coming years. More and more drivers are looking to reduce their dependence on gas powered cars for financial and environmental reasons. But an increased demand for electric vehicles will necessitate some changes in the luxury electric vehicle market. 

Thankfully, the industry is ready to meet those challenges as a larger percentage of the global population embraces electric driving. Here is a look into what the near future holds for electric vehicles and their drivers.

Increased Production

In the US, the recently-passed Inflation Reduction Act will put in place new provisions to increase American manufacturing of EVs. The aim of these provisions is to create a more robust U.S. supply chain for electric vehicles. This streamlined supply chain will incentivize American auto manufacturers to create more EV models. The end goal is to make electric vehicles of all types more accessible to the average American household.

More Options

Electric vehicle manufacturers will not simply produce a greater volume of vehicles in the coming years. Many of the biggest names in the auto industry also have big plans to unveil a wider variety of EV models over the next decade. This trend has already begun, with several of the biggest names in the industry introducing new electric models recently. Just this year, in 2023, the BMW i7, Mercedes-Benz EQS SUV, and MINI SE Countryman have each hit the market. Soon-to-be released electric models include the upcoming Porsche Macan and Mercedes-Benz EQA and EQG. 

Just about every established automaker, and several new ones, are planning to release new electric models in the near future. All of these new models flooding the market should signal to consumers that the “electric future” has officially arrived. With so many options becoming available, electric vehicles will be one step closer to overtaking gas powered cars.

More Affordable

Each of the factors mentioned above, increased production and model diversity, should also result in greater affordability. In some ways, this will be a direct effect of the Inflation Reduction Act. In addition to supply chain incentives, the act also makes it easier for consumers to receive tax credits on EVs. 

There are several incoming changes to EV tax incentives that should make them more accessible:

  • First, consumers can now apply their EV tax credits at the point of sale. Doing so essentially provides an upfront discount of a few thousand dollars on most EV purchases. 
  • Second, the federal government has lifted an existing sales cap of 200,000 electric vehicles for EV manufacturers. This means that more electric vehicles will be able to have tax credits applied to them. 
  • Third, new federal tax credits are being implemented for both used and commercial electric vehicles. The previous federal tax credit only applied to new and personal EV models.

Along with these legislative factors, the average price of EVs is also expected to decrease on its own. As more EVs hit the market, they will become a less exclusive item. Wider availability should result in lower price tags at the dealership.

Better Public Charging Infrastructure

Another key factor in the widespread adoption of electric vehicles is the availability of public charging stations. The number of Level 2 and Level 3 public charging stations has been steadily increasing over the last half decade. The existing public charging infrastructure in the US is not currently enough to support mass adoption of EVs. But these changes are not going to occur overnight. As more and more EVs join the roads, expect public charging stations to follow.

In these early years of EV adoption, many drivers have felt “range anxiety” in their EVs, that is, the fear of being out of range of a charging station for their vehicles. Range anxiety is already starting to become a thing of the past. Most large population centers in the country are already equipped with a good amount of public charging stations. The next step is to increase the availability of public charging stations along highways and in rural areas. But these changes are expected to come as the demand for public charging increases.

Better Performance

Of course, one more thing to look forward to is better performance from electric vehicle models across the board. We are already seeing this year after year as auto manufacturers perfect their craft. Just a few years ago, it was remarkable for an electric vehicle to exceed 200 miles of range. Today, more than a dozen models can surpass 300 miles, including the Mercedes-Benz EQS and BMW iX. It is not unreasonable to project that several models will eclipse the 500 mile mark in a few more years.

In summary, there are many things about the global and domestic electric vehicle markets which are trending upward. Auto manufacturers around the world are devoting more resources to their electric models. This means higher quality, better performing EVs are hitting the market each year. Along with that, a more robust industry and added economic incentives will make EVs more accessible to the general public. And, to meet those demands, a better public charging infrastructure is expected to follow.

Want to explore today’s top available LEV models? See Ray Catena Auto Group’s catalog of Electrified Luxury models from Mercedes-Benz, Jaguar, Porsche, MINI, and more. Visit us at a Ray Catena Auto Gorup location or contact us to learn more.

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