Niti Aayog Says Electric Cars Will Be Cheaper Soon, Thanks To Reduced Battery Costs
Electric cars are set to become cheaper, confirms NITI Aayog CEO Amitabh Kant. As per Kant, the cost of electric vehicles will be at par with that of comparable IC engine vehicles in the next 3 to 4 years. This will be enabled by a lower cost of batteries used for EVs in the near future.
There is an inevitable transition towards electric vehicles taking place and as per Kant, India should be ready for it. "We will transit towards there as the cost of a battery falls from 276 dollars per kilowatt-hour (kWh) to 76 dollars per kilowatt/hour,¡± he mentioned at a recent CII event.
It is, however, not clear if Kant specifically mentioned lithium ion batteries for this or not. As of now, the majority of electric vehicles in India are backed by lithium-ion batteries. The technology is preferred over its alternatives due to its high capacity and safe operations.
Lithium-ion batteries, however, are also the costliest component of an electric vehicle. To bring down their cost, India is now looking for an indigenous production of these batteries. In addition, several entities are also looking for other battery technologies as a viable alternative for EVs in India. Indian Oil Corporation, for instance, recently announced that it will be coming up with a 1 GW (non-lithium) battery manufacturing plant in India soon.
NITI Aayog CEO- Amitabh Kant. (Representative Image: BCCL)
Lower cost of lithium ion batteries, or other batteries for that matter, will further lead to a decrease in the overall cost of electric vehicles, thus leading to their increased sales. The idea is to empower the urbanisation of the country through electric vehicles.
Apart from the environmental plus of using EVs, the transition will have another huge advantage. India will be able to cut down on its enormous import of crude oil, worth nearly USD 111 billion, over time.
Kant also highlighted the government¡¯s ongoing efforts to push the buyers towards EVs instead of IC engine vehicles. ¡°We have laid down a policy framework where in the future people will go for electric vehicles, an economic incentive has been created for people to go for this," Kant said. The incentives he mentions were also notified during the Union Budget 2019 when Finance Minister Nirmala Sitharaman announced a tax rebate of up to Rs 1.5 lakh on interest on loan on EVs, in addition to a lower GST.
In addition to electric vehicles, Kant also mentioned the importance of taking a holistic approach towards a sustainable development. He highlighted the need for a model of urbanisation based on water as well as waste recycling. The efforts towards such cause will back the promises made by India in the Paris Accord of reducing its overall pollution by as much as 35 percent.
Renewable energy is also a must for this, as he said "the speed at which we are going in terms of hydro, in terms of wind energy in terms of a rooftop, we will actually be bypassing the targets that we have set for ourselves."
(With inputs from PTI)
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