Entry-level EVs are estimated to be priced on par with ICE versions in the near future. According to Shailesh Chandra, MD of Tata Passenger Electric Mobility, we could see a mass-market EV with a real-world range of 250 km that\u2019s priced similar to an ICE-powered vehicle within the next 18 months, as battery costs fall to a record low of $130 per kWh.<\/p>\n
Chandra added that the cost of an internal combustion engine will be inflationary in nature to meet future emissions compliance, whereas EVs will witness a deflationary trend with falling battery costs. Tata Motors uses LFP batteries that are becoming more affordable, because of increased lithium production and the slowing growth rate of EVs.<\/p>\n
At the moment, EVs command a premium of about 25-35% over a conventional ICE-powered car. Besides 5% GST and cheaper batteries, the government\u2019s PLI scheme will enable the carmaker to price its products competitively and close the gap with the ICE models.<\/p>\n
That being said, larger electric SUVs like the upcoming Harrier EV and Curvv may not be able to achieve the same cost competitiveness. Tata currently offers electric derivatives of the Tiago, Tigor and Nexon.<\/p>\n