India's goal of cheaper EVs is still far off

The majority of electric vehicle (EV) components, especially batteries, are still imported, so even with India's historically high demand for EVs and the plethora of domestic companies vying for market share, EV prices are not likely to decline anytime soon.

Industry experts warned that there might not be a price decrease even if India began producing batteries domestically.

According to Himanshu Singh, a Prabhudas Lilladher car expert, battery prices may not decrease significantly because the majority of the costs will still be borne by the importation of raw materials. But as time goes on and more components become localized, the cost advantage could grow, he added.

The head of Nomura's auto retail business, Harshvardhan Sharma, believes that lowering import taxes and shipping expenses for batteries from South Korea and China could result in lower cell prices. Companies may gain from economies of scale as local production volumes rise, he continued, further cutting costs.

Co-founder Priyadarshi Panda of the Silicon Valley-based International Battery Company (IBC), which recently revealed plans to construct a lithium-ion cell manufacturing facility in India, stated that the company will sell batteries to prospective clients at the same price that rivals like Ola Electric, Ather Energy, TVS Motor, and others are charging.

He stated that the company is initially negotiating volume and will match other mobile providers' prices depending on that volume, though he would not reveal specific figures. It is certain that it can run a lucrative business by providing cells at a basic price in vast volumes.