Tata Passenger Electric Mobility’s Managing Director, Shailesh Chandra, predicts that mass-market electric vehicles (EVs) with a 200-250 km real range will reach a price comparable to internal combustion engine (ICE) vehicles in the next 12-18 months. Chandra attributes this shift to battery costs reaching a significant milestone of $100 per kilowatt-hour, making EVs more affordable.
While early EV adopters are willing to pay a premium, Chandra emphasizes the growing demand among mainstream buyers for EVs at ICE prices. He anticipates a breakthrough in the mass market, foreseeing a real range of 200-250 km within the mentioned timeframe.
Chandra emphasizes the “locked-in” cost trend for EVs, where technology costs, especially batteries, are expected to decrease (“deflationary” trend). In contrast, he describes the cost of internal combustion engines as “inflationary” due to future emission compliance requirements.
Acknowledging that EVs currently incur a 25-35% higher cost than conventional cars, Chandra believes a lower GST of 5%, combined with decreasing battery costs and government incentives, will help Tata Motors competitively price EVs and generate profits.
Tata Motors, a leader in India’s electric car market with over 85% market share, is poised to surpass 100,000 electric car sales this fiscal year. The company has committed $2 billion in EV business investment and plans to introduce a portfolio of 10 electric vehicles by 2025. Chandra anticipates EVs contributing 30% to Tata Motors’ total volumes by 2026-2027.
Chandra’s optimistic outlook suggests a transformative period for the EV market, with a convergence of real range, cost, and market share, driven by technological advancements and favorable government policies.