Battery prices will decline in the next 2 years, confirmed by Niti Aayog

The transition from ICE vehicles to EVs is inevitable. The Indian market has reached the point where ist now on the automakers to bring the required change and make India the global leader in the EV market.

Mr. Amitabh Kant who is the CEO of NITI Aayog while speaking at the annual convention of the auto industry body Society of Indian Automobile Manufacturers confirmed that in the next 2 years the price of the batteries will fall down. This will lower the upfront of EV resulting rise in the adoption rate of EVs in the market.

The price of the battery is 40% of the total price of an EV, (How the price of the battery affects the price of EV)

“At Niti Aayog, we are taking all measures to boost innovation, efficiency, and investments in the automobile sector. Especially to bring down the initial upfront cost of EVs to the consumers. I am stressing on EVs because I am a strong believer and a firm believer that this transition is inevitable,” he asserted.

While addressing the convention, he said that “we are a center for compact car manufacturing. If we do not innovate, and if we do not make the radial transformation, we will lose this opportunity to become a leader in electric vehicle manufacturing.“
He further added that the global price of batteries is declining at a rate that was not assumed. This decline has opened a window that can give exponential growth to the EV adoption rate. This means India has a window to reach the tipping point in EV sales.

“The writing in on the wall, and it’s for the industry to make the inevitable change and drive it, and lead it, and make India a leader in the transition of mobility across the world,” he said.

While addressing the convention, Mr. Kant asked the automobile manufacturers to focus their time and energy on R&D to develop a proper ecosystem that can support electric mobility.

He also focused on the localization of the auto part which includes vehicle systems integration, power electronics and charging infrastructure, and motors and controls.

Indian market is very price sensitive which means there is an opportunity for new and unique business models such as battery swapping and leasing battery.