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Friday, January 27, 2023

By CarKhabri Team

Reasons For Increasing Prices Of Electric Vehicles In India

Reasons For Increasing Prices Of Electric Vehicles In India

It's not only that the vehicle buyers are concerned about the regular hike in fuel prices, the buyers of electric vehicles are also going to face the same problem in 2023. With the increasing demand for electric vehicles, manufacturers are working on enhancing the efficiency of electric vehicles. The integration of new features indirectly increases the prices of these vehicles. This price hike can impact the buying decision of buyers looking for options to control the cost of their transportation by buying cost-effective vehicles. Although electric vehicles are going to replace fuel-based vehicles in future, it is imperative to inform consumers about a hike in the prices of electric vehicles from time to time. 
Reasons Behind Increasing Prices of Electric Vehicles In India: There are several reasons behind the increasing prices of electric vehicles in India. Some of these reasons are:
  1. Incentives from the Government: It is one of the most important reasons behind the increasing cost of electric vehicles in the country. The main objective of providing incentives by the government is to inspire people for buying electric vehicles. The government incentives decrease the price of electric vehicles. With the introduction of the FAME-II scheme by the government of India, many foreign auto manufacturers are taking its advantage. On the other side, the subsidy amount of many Indian electric manufacturers has expired. 
  2. Cost of Input Materials: Lithium is one of the highly used materials in developing batteries used in electric vehicles. It is also known as white gold. The prices of lithium have seen a dynamic hike in recent years. It is also one of the reasons behind the hike in the prices of electric vehicles in India.
  3. Limited Manufacturers: Despite the demand for electric vehicles in the country, the number of electric manufacturing companies is still very less than manufacturers of fuel-based vehicles. This affects the supply of electric vehicles according to demand, which indirectly increases the cost of these vehicles. With this, the prices of batteries used in electric vehicles have also increased dynamically in recent years.
  4. Demand For EVs: The demand for electric vehicles has increased in recent years and this is putting pressure on manufacturers to manufacture more vehicles. This can hike the prices of these vehicles. 
Conclusion: In recent years the use of electric vehicles has gained popularity with the availability of some high-performing electric vehicles more and more people are shifting towards their use. The increasing demand and hike in the cost of raw materials are some factors that are increasing the cost of electric vehicles in India.

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