Has the Reduced Battery Prices Facilitated Adoption of Electric Cars in India?

Posted by Pramod Arya on November 1st, 2022

The automotive industry is under immense pressure to reduce carbon footprints, as the excessive usage of fossil fuels for powering up vehicles has had a negative effect on the environment. Air pollution levels all across the globe, including India are surging and the situation doesn’t seem to get better. India is one of the bottom five nations in the environmental health category. The country ranked 178 out of 180 in terms of air quality as per the Environmental Pollution Index.

Owing to these factors, the need for coming up with solutions that help in curbing air pollution levels is surging in India. This, in turn, is resulting in the growth of the Indian electric car market. The emissions generated from conventional ICE vehicles has led to global warming and the depletion of the ozone layer. The use of electric cars however, instead of ICE cars, can significantly aid in reducing air pollution and at the very best won’t result in as much pollution as ICE vehicles.

The recent decline in the prices of batteries used in electric cars is a key reason for the growing demand for electric cars in India. Since India is a developing countries, the disposable income of people was not allowing a lot of people to invest in these vehicles. However, now because of technological advancements, the prices of batteries have reduced, thereby decreasing the overall cost of the vehicle. This is resulting in the rising adoption of electric cars in the country.

When technology is considered, the market is divided into hybrid electric vehicles, plug-in hybrid electric vehicle, and battery electric vehicle (BEV), among which, the BEV division held the major share of the market in 2017.Between these two, the LFP category accounted for the largest share of the Indian electric car market in 2017, contributing more than 65% sales volumes, according to a report by P&S Intelligence. This can be ascribed to the various benefits offered by these batteries such as thermal stability and safety levels, high current rating, and long cycle life. Maharashtra dominated the market 2017, because of favorable government policies in the state.

Hence, the demand for electric cars in India is increasing due to the surging air pollution levels and declining battery prices.

Get More Details India Electric Car Market In-Depth Regional Analysis