Due to the increasing prices of petrol and diesel, people are now buying electric vehicles. Now the good news is that electric vehicles have become cheaper than before.

The price of certain models of electric vehicle manufacturing companies has reduced by Rs 20-25 thousand even in two-three months, showing a reduction of up to 22 percent.

The price of entry-level models has reduced by 15-17%. The reason behind reducing the price is to increase the sales of EVs by making them more affordable.

The companies in the country which were already making two-wheelers with petrol engines have now also adopted an aggressive policy in making electric vehicles. Competition in the electrical sector is increasing, and the price is also falling due to a reduction in the cost of battery manufacturing.

Reasons for Price Reduction

According to Sanyog Tiwari, EV battery expert and CEO of EV Energy, after the discovery of lithium reserves in many countries of the world including India, the Chinese manufacturers who dominate the field of EV batteries are seeing their market share decreasing.

The prices of Lithium Ion batteries are falling because other batteries are being prepared as their substitute. Electric two-wheeler manufacturers have also reduced the prices of their models to clear the stock before the March year ending.

In 2-3 years, the price will be equal to petrol vehicle. Petrol two-wheeler manufacturing companies are also increasing the production of EV two-wheeler models, with the aim to increase their stake from the current 5% to a higher percentage in the coming years. This will further bring down the prices of EV vehicles to be at par with petrol two-wheelers.

Price Reduction due to Battery Cost

40 percent of the cost of making an electric vehicle is the battery. In the last 5-6 months, the price of Chinese batteries has decreased by 40-50 percent, leading to a 15% reduction in the prices of the entire product range.

With the reduction in battery costs and increasing competition in the EV sector, the prices of electric vehicles are expected to decrease further in the near future, making them more affordable for consumers.

News Summary

  • The prices of certain models of electric vehicle manufacturing companies have reduced by Rs 20-25 thousand, showing a reduction of up to 22 percent.

 

  • Entry-level models have seen a price reduction of 15-17% in recent months.

 

  • Competition in the EV sector is increasing, leading to a decrease in the cost of battery manufacturing and overall reduction in the prices of electric vehicles.

 

  • Electric two-wheeler manufacturers are reducing prices to clear stock and increase sales before the year-end, making EVs more accessible to consumers.

 

  • With the reduction in battery costs and increasing production of EV models by petrol two-wheeler companies, the prices of electric vehicles are expected to be at par with petrol vehicles in the next 2-3 years.

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