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Last updated: Feb 2020 by Narasimhan Santhanam



This posevnext-logo-v-smallt is a part of EV Next’s EV Perspectives.

EV Nexta division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.


 

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Introduction

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.

Distribution of the Price of an Electric Car in 2020, By Component

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.

Know the costs and economies of electric vehicles in India: Vehicle Prices | Component costs | EV Supply Chain


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Get to know about 1000+ EV innovations from EVI2: Electric Vehicle Innovation Intelligence from EVNext

 

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