According to Tata Motors, entry-level EVs will match ICE versions in price in 18 months. - CarZoom360


Thursday, January 11, 2024

According to Tata Motors, entry-level EVs will match ICE versions in price in 18 months.

The first weekend in December 2023 will see Mumbai host the 10th edition of the Mercedes-Benz Classic Car Rally (MBCCR). Among the most prestigious classic car shows in India, this one showcases legendary vehicles that have belonged to businesses, notable collectors, and royal families. At least 72 distinct antique Mercedes models will be on show among the 75 vehicles in this year's edition. 

According to Shailesh Chandra, MD of Tata Passenger Electric Mobility, a mass market electric car with a real-world range of 250 km and a price comparable to an ICE-powered vehicle could be available within 18 months, given that battery costs have dropped to a record-low of about $130 (roughly Rs 10,800) per kilowatt hour.

  • EVs are currently 25–35 percent more expensive than their ICE counterparts.
  • Prices for ICE will rise, whereas those for EVs will fall.

Chandra stated that while early adopters of EVs are willing to pay a 20–30% premium above conventional ICE vehicles, mainstream purchasers desire an EV at the same price as an ICE vehicle. Chandra made this statement during our sister newspaper Autocar Professional's India EV Conclave. "You are going to see a car with 200-250 km real range in the mass market, hitting that level, in the foreseeable future - in less than 1 year, 1 and a half years," he continued.

Due to substantial import content and high battery costs, the cost of an electric vehicle is still roughly 25–35 percent greater than that of a regular ICE-powered automobile. For example, the top-spec models of the Nexon and Nexon EV cost, ex-showroom, Rs 15.50 lakh and Rs 19.94 lakh, respectively. This represents a price differential of around thirty percent.