Last updated: Feb 2020 by Narasimhan Santhanam
This post is a part of EV Next’s EV Perspectives.
EV Next, a division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.
If we are able to get the prices of electric cars to come down to those of conventional vehicles, there’s little doubt that a much larger portion of the population would buy them. But what’s needed to bring down the electric car cost?
To answer this question, it will be useful to know the cost break-up for an electric car, wouldn’t it?
And that’s precisely what this provides.
Approximate cost decreases expected between 2018 and 2020 are:
- Batteries – 12-15%
- Motors – 15-25%
- Chargers – 15-25%
The table above provides an indication of the way battery prices contribute to overall cost of the electric vehicles. As of 2018, batteries (Li-ion) contribute 40% of the total cost; this is likely to come down as low of 35% of the total cost by 2020. Costs of chargers and motors could decrease a bit too, but the change in cost of batteries matter the most.
As the cost of batteries is the critical component that leads to the high cost of electric vehicles, let’s review estimates of what these costs are likely to be in future.
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See also the related blog posts
- Prices of Electric Cars – Global – Cost of Electric Cars, Electric Buses – Tesla, Nissan, Toyota, BMW, BYD, Volt, Bolt, Honda
- Prices of Electric Vehicles in India – Cost of Electric Scooter, Cars, Electric Buses – Tata, Mahindra, Hero, Ather, Ashok Leyland
- Sales Trends of Major Indian Electric Vehicle Brands – Hero, TVS, Tata, Mahindra
- Suppliers of EV Components To Tesla, Toyota Prius, Nissan Leaf – Batteries, Motors, Powertrain, BMS
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