EV Prices may increase up to 10%: Battery costlier by more than 60% in the domestic market in a year, less chance of relief

Electric vehicles (EV) prices in the country may increase by 7-10% due to increase in battery prices. Due to this, the campaign to promote affordable EVs can be a setback. According to Bloomberg NEF, lithium-ion battery packs have become costlier by an average of 7% worldwide this year. But EV battery prices in India have gone up by 50-60%.

Sanyog Tiwari, CEO of EV Energy, told that after the incidents of EV fire, the government has tightened the rules related to batteries. AIS 156 standard will be applicable for testing of batteries from December onwards. Apart from this, the prices of many electronics parts like BMS, IC and minerals used in batteries have also increased. Due to this, the battery which was available at Rs 11,700 to 12,900 per kWh in the domestic market last year is now available at Rs 14,800 to 18,900.

EV batteries are getting costlier in the domestic market due to 4 reasons

  • Minerals like lithium, cobalt, nickel became costlier
  • Supply problems have increased due to the lockdown in China
  • Stricter norms of battery testing are being implemented in the country
  • The prices of electronics used in batteries increased

Prices of petrol-diesel cars also set to increase
Earlier, companies like Maruti-Suzuki, Tata Motors, MG Motor, Renault, Mercedes-Benz and Audi have announced to increase the prices of all models by 5-15% from January.

Manufacturing cost of EV increased by 15%
Automobile expert Sanjeev Garg said that the cost of electric vehicles, especially two-wheeler companies, has increased by 15% due to costlier batteries. The battery accounts for 45-50 per cent of the cost of a vehicle. However, due to the recent slowdown in demand, EV companies are refraining from passing the entire burden on to the customers. But it is their compulsion to increase the prices by 7 to 10 percent. Due to this, EVs may become expensive next year.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The Latest

To Top