New Delhi: Are you planning to buy an electric car, but its price tag turns out to be a discouraging factor? Don’t worry! Wait for a couple of years and they (electric cars) will come within an affordable price range, like other fossil fuel powered vehicles.
If mobility experts are to be relied up on, the market of electric cars in India is going through a transformative phase. In the next two years, battery-powered car could cost about 38% less than the current market prices. Cost of battery and chip has already started falling down. The cost of one kilowatt power (kWh) in India has come down ₹8,350 ($100) in 2023 vis-a-vis ₹10,850 ($130) in 2021.
A research analyst in EV mobility hoped that the entry of new companies and innovative technologies would further push down the cost of battery, a vital component of the electric vehicles. “By 2025, the cost of one kWh will come down to ₹6,650. Likewise, the price of electric car, which costs around ₹10 lakh, could be available in ₹7 lakh range by the end of 2025,” he said.
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How EV’s price will come down to ₹7 lakh
Currently, there are EVs in the market with batteries ranging from 17 to 108 kWh. Accordingly, battery consumes about 70% of the cost of an EV. The price of electric car worth ₹10 lakh will be reduced to ₹8.60 lakh if the cost of battery comes down as expected. Secondly, manufacturing of semiconductor chips in the country will further reduce the cost by 10%. The reduction in cost of battery and computer chip will bring down the EV’s cost to ₹7 lakh.
Big companies eye Indian EV market to enter
In March 2023, a British brand MG Motor has entered into partnership with JSW Group to take a plunge in to electric mobility sector in India. MG Motor has already had an agreement with Chinese parent company SAC Motors to get cost-efficient technology. JSW has aluminium plants. Market experts say that many non-automobile companies might enter the EV making sector, which is likely to expand very fast.
Also Read: Tesla’s plan to enter India set to suffer, as Govt declines tax rebate
259% growth between 2023-25
The EV industry in India is said to exceed ₹60 thousand crore by 2025. The market worth of electric vehicle was assessed to be ₹16,700 crore in 2023. This means that it may see a growth of 259% in the next 2 years.
Car makers begin reducing EVs’ price
In their bids to grab opportunities owing to evolution in technology, car makers have decreased the cost of vehicles. MG Motor India has reduced the price of Comet EV from ₹8 lakh to ₹7 lakh. By 2025, the price of cars in this category will be down to ₹5 lakh. There is no petrol car priced lower than this. Such customers can shift towards EV rapidly. With this, the share of EV in the car market can increase from 2.3% to 10%.
