To help increase the demand for electric vehicles (EV), the Energy Department is working toward reducing EV manufacturing costs.
Story so far: The Energy Department is in talks with the Ministry of Transport, the Finance Department and the manufacturing sector. They wish to increase the number of EVs on the road. This will help reduce dependency on fossil fuels.
- The subsidy of EVs rests with manufacturers and only a limited amount is passed on to customers.
The Bangalore Electricity Supply Corporation Limited (BESCOM) held a workshop with EV companies. This was done to realise a strategy that allows the subsidy to be fully passed on to customers. The battery cost and limited demand for EVs result in their high cost.
Numbers: An EV can cost anywhere between ₹1 lakh to ₹1 crore (for two and four-wheelers). 40% of this cost is just for the battery. After-sale services and maintenance are also highly-priced.
What now: The Energy Department wishes to bring down the manufacturing cost by 20% at least. BESCOM will continue to set up more charging stations. They hope this will increase the demand for EVs.