It is a well known concern that, given the steep initial cost of ownership, a lot of potential buyers reconsider their buying decision. According to Greaves Electric Mobility, the lower running cost and cutting down expenses through indigenisation holds the key to making EVs affordable.
According to Sanjay Behl, CEO and Executive Director, Greaves Electric Mobility, “there are some of the electric parts such as BMS and cluster, where we are currently importing but even there I see between 18-24 months these can indigenized too.”
He adds that “If the 100-110 ICE segment is currently retailing between Rs 80,000-90,000, then for EV the customer expects a price that is not too different from that but with a similar kind of speed or range. FAME II subsidy helped us equate the entry price. That’s the biggest boost that it has given.”
Next comes the cost of operations and the service. How much do you pay, how much do you use every day and how much does a service cost? So the first part is taken care of because of the FAME subsidy and the second part is “extremely attractive because suddenly your cost of running a vehicle comes down by 80-90 percent. That’s where the big differences are. If my moving need in a city is only 50 km a day, and if one battery charge can give me 80 -90km range my overall cost plummets from Rs 100 rupees a day to Rs 15-20 a day.” elaborates Behl.
The critical need for servicing is also very high in case of ICEs. But EVs have a natural advantage here. Given the lesser number of vehicle parts, the need for servicing are also lower. However, there’s an electronic component there. The battery is almost 35-40 percent of the cost for the vehicle. And if the battery goes bad, then obviously the servicing cost will shoot up in one go.
Ampere in this context are “currently offering a 30,000 km or three-year warranty on the electronic components. And because it’s a new industry, we have not seen those warranties getting exercised fully today. The reduced cost will get manifested in the future.” Behl highlights.
These measures coupled with improving testing cycles, certification standards and better battery quality will drive future volumes, he concludes.
