Electric Vehicles Set to Charge Forward: Prices Dropping by 2025
Electric vehicles (EVs) are no longer a futuristic fantasy.Electric vehicles (EVs) are gaining momentum globally, with India gearing up for a notable transition towards electric mobility. The upfront cost, mainly influenced by battery prices, has historically hindered EV adoption.But exciting news is on the horizon!
The electric car market in the country will change completely in two years as both battery and chip prices start to come down. A kilowatt hour (kWh) battery cost Rs 10,850 in 2021, which has come down to Rs 8,350 in 2023. According to Saji John, research analyst at Geojit Financial Services, if new companies enter the market to take advantage of falling prices, prices will fall further due to increased competition.
By 2025, the cost of a kWh will come down to Rs 6,650. will be Currently, EV vehicles with 17 to 108 kWh batteries are available in the market. 70% of the cost of an EV is the battery. According to that, the price of an EV worth Rs 10 lakh will be Rs 8.60 lakh. will be Second, manufacturing of semiconductor chips in the country will further reduce the cost by 10%. In this case the cost will be around 7 lakh rupees.
John said the effect of cheaper batteries is also visible. MG Motor India has reduced the price of Comet EV from Rs 8 lakh to Rs 7 lakh. done By 2025, the price of this series of cars will reach 5 lakh rupees. No petrol car is priced lower than this. Such consumers may shift to EVs quickly. With this, the share of EV in the car market can increase from 2.3% to 10%.
What’s changed now: Costs down, range and warranty up
Range: According to Bloomberg NEF, EV range has been growing 10% per year since 2018. Now EVs with a range of up to 700 km are also available.
Warranty: Up to 8 years warranty is now available on EV battery packs. She was 3 years old till 2023. Due to which the confidence of customers is increasing.
Price: Lithium-ion battery packs are likely to become 14% cheaper in 2023. Due to which the price of 40 KWH EV will decrease by 70 thousand rupees.
Several new EV models by next year
- Tata Motors: All cars will be converted to EVs. Launch of coupe-like Curve EV in June-July.
- Mahindra: Will bring 5 EV SUVs in two years. EVs like the XUV700 will arrive in 2025. Cheaper batteries are also being worked on.
- Maruti Suzuki India: First EV to arrive in December Estimated price 22 lakhs. The company will launch several models in 2025.
Entry of big companies will change the market
The partnership between MG Motor, JSW will impact the Indian EV market. MG has also tied up with Chinese parent company SAC Motors for cheaper technology. JSW has an aluminum plant. Automobile expert Sanjiv Garg said, seeing the growth of the EV segment, many more non-automobile companies could enter it.
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. If the cost of the battery comes down as expected, the price of an electric car worth ₹10 lakh will reduce to ₹8.60 lakh. 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.
259% growth between 2023-25
Experts predict that the EV industry in India will surpass ₹60 thousand crore by 2025. The market assessed the worth of electric vehicles at ₹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%.
