Electric Two-Wheeler EV Discount: Manufacturers Slash Prices by Rs. 25,000, Battery Cost Reduction Behind

In India, the purchase of electric two-wheelers has become more affordable. Many electric two-wheeler manufacturing companies have reduced the prices of their flagship models by 20-25% within 2-3 months. Entry-level models have also seen an average decrease in prices by 15-17%.

The primary reason behind this price drop is the increase in sales of two-wheeler EVs, making them more prevalent. Established petrol two-wheeler manufacturers in the country have also adopted aggressive policies in electric two-wheeler production, intensifying competition in the sector. Consequently, manufacturers are passing on the benefit of reduced battery prices to consumers, further fueling the competition in the market.

Declining Prices Due to Lithium-ion Battery Cost Reduction

According to EV battery experts and EV Energy CEO Sanyog Tiwari, after the discovery of lithium reserves in many countries, including India, Chinese manufacturers dominating the EV battery sector are experiencing a decrease in market share. 

Additionally, besides lithium-ion batteries, other battery alternatives are also rapidly evolving, contributing to the reduction in lithium-ion battery prices. In response, electric two-wheeler manufacturers have also lowered their model prices to clear stocks before the end of March.

Future Trends: Electric Two-Wheelers and Petrol Price Dynamics

Within the next 2-3 years, the price of petrol is expected to increase significantly, affecting the competitiveness of petrol two-wheelers. According to Manish Raj Singhania, the head of FADA, even petrol two-wheeler manufacturers are expanding their e-two-wheeler models. Currently, their share in the market is approximately 5%, which is anticipated to grow substantially in the coming years. Consequently, prices of petrol two-wheelers might also witness a decline in the near future.

As per Rajiv Arora, the founder of Altius EV-Tech, over 40% of the cost of an e-two-wheeler is attributed to the battery. In the last 5-6 months, Chinese battery prices have dropped by approximately 40% to 50%. Additionally, there has been an overall reduction of 15% in the prices across the production category. These trends highlight the increasing affordability and attractiveness of electric two-wheelers in the Indian market, especially amid rising petrol prices and battery cost reductions.