The price of electric vehicles i.e. EV will come down significantly in the next two years. By 2026, the price of EV batteries will be half as compared to 2023. 28-30% of the cost of EV manufacturing is of batteries. According to the latest study by Goldman Sachs, the average price of EV batteries worldwide in 2022 was $153 (about Rs 13 thousand) per kilowatt. In 2023, their price came down to $149 (about Rs 12,500). By 2026, the price is expected to come down to $80 (about Rs 6,700) per kilowatt. This is about 50% less than in 2022. After the battery prices reach this level, the price of electric cars will become equal to petrol cars. FICCI demands tax on EV battery, charging service to be reduced from 18% to 5%. There is a need to reduce GST on battery and charging services to keep EVs competitive in the country. Also, there is a need to increase PM e-drive fund to increase EV sales. FICCI placed this demand before the government in its national conference. FICCI Electric Vehicle Committee Chairperson Sulajja Firodia Motwani said that there is 18% GST on EV battery and charging services. We request to reduce it to 5%. So that battery, charging becomes affordable for consumers. FICCI President and Mahindra Group MD and CEO Anish Shah said that electric four-wheelers currently have a 1.5% share in India, so a lot of work still needs to be done. Prime Minister’s Advisor Tarun Kapoor said – The automotive industry needs to play a big role in bringing new electric cars. The government will consider all aspects including tax issues. Tesla: 90% cheaper than 15 years ago The report says that ever since modern electric cars started coming into the market, the price of batteries has been continuously decreasing. According to the US Department of Energy, the price of Tesla Roadster has come down by about 90% compared to 15 years ago. Why the decline: Battery prices are decreasing due to these reasons 1. Advancing technology: According to the analysts involved in the study, cell-to-pack technology requires fewer battery modules. This not only reduces the cost of the battery pack, but also increases the energy density by 30%. This helps in keeping the size of the battery small. 2. Low prices of raw materials: Raw materials like lithium, cobalt are used in battery manufacturing. These were expensive till 2022. The decline has been continuing since then. This decline may continue till 2030. Due to this, the cost of battery manufacturing will be reduced by about 40%.
