Will EV Car Prices Go Down?

Right now, if you look at the Indian auto car market, you will find that the prices of EV cars are 50 to 60% higher than petrol cars. This is because the battery pack of an EV car is expensive and India produces only a limited quantity of Li-ion cells, which is only 30% of the demand.

Since the demand for Li-ion cells is high, every electric car manufacturer in India imports Li-ion from other countries like Japan, Korea, China. So when this happens, the providers of these companies sell the battery at higher rates and the import duty here in India makes it more expensive. So eventually when Indian car makers use such highly costly imported components to make electric cars, there is no doubt that they will be expensive.

So now a question comes, will EV car price go down in near future in India?

Well, it’s simple and clear answer is YES, the prices of EV cars will go down and soon in few years the lower-middle class family will easily afford it by making full payment in cash or EMI.

#1. Battery Price

The prices of EV cars will be reduced by 30% to 40% as government of India encouraging local companies to manufacture the li-ion cells in India.  Among them Ola has already cleared by raising Rs 3200 crore to build batter cell manufacturing plant in Krishnagiri, Tamilnadu.

Possible that in near future, Indian government will give the more license to manufacture the li-ion batteries to other potential manufacturers. Once the production of EV car batteries will start in India, the prices of battery  will drastically reduce and it will reduce the cost of an EV car.

In this way, dependence on Japan, Korea, China for batteries will be reduced and this will bring down the price of EV cars drastically.

#2. Low Competition (Monopoly)

Apart from that, the competition is also a big thing. At present the only few brands are offering the electric cars, hence the competition in electric car market is low and due to monopoly the price of EV car are high.

But worry not, once new players will join this  sector and launch new EV cars, then ultimately the price of EV cars will drop and you can see high-tech features in affordable rates.

It is estimated that if somehow the price of batteries comes down and new brands launch EV cars, then in the near future Indian users will get to see affordable electric cars in the range of Rs 7 lakh only.

What’s your take on this? Will EV car prices go down in near future? Please share your opinion in the feedback section and don’t forget to share.