![You are currently viewing Why Electric Vehicles are Expensive? Let’s explore [2024]](https://evelectrichub.com/wp-content/uploads/2024/10/Electric-Car-Money-1.png)
Introduction - Why electric vehicles are expensive In India
As we all know, the world is transforming from fuel-based transportation to electric vehicles. As a result, the popularity of electric vehicles is increasing despite why electric vehicles are expensive.
Sure, you will notice some electric cars, scooters, cycles, and even buses on Indian roads in 2024, which did not happen before 5-6 years.
Unfortunately, despite the cost-effective and eco-friendly transportation provided by electric vehicles, people still prefer fuel-based vehicles.
Based on my past reviews, The huge initial purchase cost and expensive repair cost force others to stick with the fuel-based vehicle even though they like to have an electric one. You may wonder why EV cars are costly in India. I have answer to it ,keep reading.
Why EVs are expensive in India ?
Even EVs have significantly fewer moving parts (Ig around 20) compared to fueled vehicles (about 2000🤯). This will reduce manufacturing complexity and potential points of failure. Also Read EV Powertrain Components and Systems—Explained. Despite this, the electric vehicle is still very expensive (the majority of the cost comes from the battery 😥).
In this blog, we will explore why electric vehicles are expensive and the main factors contributing to the cost in a well-structured manner that you won’t get anywhere else.
Let’s explore the unique EV specific components Contributing the high cost
Before diving into the EV components. Let’s get the overall idea about them. Kindly Read EV Powertrain Components and Systems – Explained
Hence it will be easy for you figure out why Ev cars are costly in India while reading the coming section. Excited to know about the future trend of EV. Read – Future of Electric Vehicles – 2024
The battery pack is the most important part of EVs. To understand why electric cars are expensive in India? I will break down the reason behind the high cost of EV batteries.
I will explain from raw materials to production complexities; hence you need to get the overall idea regarding this.
High-Cost of Raw Materials
Lithium, Cobalt, and Nickel
As we all know, most of the EVs comes with lithium-ion battery. This type of battery heavily relies on Lithium, Cobalt, and Nicket.
Unfortunately, these elements are limited in earth crush and very challenging to mine and extract. Which adds more price to it. Based on recent report the price of these elements has surged over recent years because of the rise in demands and but constrained supply.
Lithium-Ion battery also used in every mobile, laptop, and other electronic gadgets. Which will further increase the demand.
Supply Chain and Geopolitical Factors
The raw most of the elements are limited in earth crush, hence it won’t be evenly distributed.
Also, some of these elements comes from geopolitically instable place, adding more transportation and trade restrictions.
like, cobalt which predominantly mined in the Democratic Republic of Congo, the supply will impact by the political factors and fluctuate the price further.
India’s EV Battery is heavily imported
Currently, China is the main country where the Indian Import the EV battery cells.
Import taxes and charges will contribute to the additional cost of imported EV batteries in India.
- Customes Duty
- Logistics and Transportation Costs
- Shipping Cost and more
If India successfully manufactures its own EV Battery cells, It could significantly lower the pricing of the EV Batteries. But much effect is required from the government, local industry players and researchers.
Advanced Manufacturing Requirements
Precision Engineering
Further, the process of making the EV battery requires the high precision to ensure the safety and energy efficiency.
Hence, each cell in the battery pack needs to construct and assembled to meet the standards.
Maintaining the good load balancing the for each individual cell is also very important. Because any imbalance of load in any cell will negative affect the other cells.
Cleanroom Facilities
Guys, any contamination of EV battery components will sure decrease the overall energy density of the battery.
The contamination often leads to:
- Reduction of active materials
- increased internal resistance
- degradation of electrolyte
- Reduction of thermal stability
Hence, setting up and maintaining the cleanroom facilities is very expensive process and adds the cost to the production line.
Economies of Scale
Limited Scale of Production
Despite the significant growing popularity of EVs. The production of the EV batteries remains limited comparing to the internal combustion engines. Hence the production scale of EVs won’t go up significantly.
But, as of current trend more automakers are entering into the EV market. Which may increase the production scale. Hence, we can expect the costs to decrease over time. If the production skyrocket.
Recycling and Disposal Costs
End-Life Managements
Still, we don’t have developed the highly efficient batteries recycling process. The recycling of batteries is complex and required costly procedures to safely dispose of battery materials.
The research and development (R&D) play the very important to the any new emerging industries (here EV Market). Because it
- Provides Competitive Advantage
- Increase Revenue
- Improved Efficiency
- Reduction in manufacturing cost and more
Hence, EV automakers invest heavily in R&D to develop and enhance the EV technologies. But sadly, those costs are eventually passed to consumers in the form of freaking high price. And That’s why electric vehicles are expensive in India.
But there is the good news, the more the R&D the less will be cost in future. Initially, hope you know, smart phones are really expensive, and many can’t afford to buy it in past. Now compare the with the present market. You will get the answer!
I elaborate the major R&D areas in EV indirectly contribution high initial price.
Enhancing Energy and Power Density
This is the primary goal of R7D in battery. Increasing the energy and power density will allow for longer driving ranges and longer lasting energy storage.
This will be done through increasing the lithium-ion chemistries and also, the solid-state battery will sure the gamer changer (But still in under extensive research).
These processes are very important, Because the improving the power density enables faster charging times and higher pack power output.
Extending Cyle Life and Durability
In order to ensure the longevity and reliability of battery packs, R&D efforts on improving
- Electrolyte Stability
- Preventing Degradation
- Extending Cycle
Significant among of money being spent of thermal management systems which indeed maintain optimal operating temperature and enhancing overall performance.
Enhancing the Safe Features
One of the most important areas of R&D in context battery is safe. Designing cells with robust enclosures and internal efficient internal safety mechanisms to prevent thermal runaways and other hazards.
Further, development of advanced intelligent battery management system (BMS) the monitor battery health, balance cells, and implement safety protocols also on cards.
High EV Insurance Cost
Overall, The EV insurance can be more expensive than traditional field-powered vehicle insurance. Let’s explore the main reason behind it.
Expensive Repair Costs
EV components, mainly batteries and electric motor, can be significantly more expensive to repair or to replace compared to fuel-power vehicle.
further specialized tools and trained technicians are required for EV repairs will drive the cost even more up.
limited Repair Network
As we all know, the infrastructure of EV repair and maintenance are still under development, and there are fever specialized repair shops comparing to traditional vehicles.
Hence, this can lead to longer repair time and higher costsl
Higher Vehicle Value
Higher the cost of vehicle, the higher the insured declared value (IDV). This is the significant factor in determining the insurance premiums in EVs.
Theft Risk
EVs, mainly the more popular models might be attractive to thieves due to their high value and advanced technology.
Unfortunately, this risk of theft will contribute to higher insurance premiums.
Final Thoughts
In conclusion, the primary factors contributing is battery technology, limited supple, substantial R&D investment and that’s why electric vehicles are expensive in India.
However, the advancement in battery production, expansion of EV market, and other government incentives, the future cost might tend to decrease. but it takes many years to see the significant difference.
But guys, this even applicable for now too. Buying the electric vehicle may cost more initially, but you can save lots of money over time. Since, EV are cheaper to fuel and maintain than regular cars. This makes EVs a smart choice in long run.
FAQs
1. How can consumers benefit from understanding the costs associated with electric vehicles?
by understanding the cost, we can take the better financial decision and proactively plan to reduce the risk of damage associated with the expensive components.
2. why are electric cars are not getting popular as expected?
Because mainly high initial cost and limited charging infrastructure.
3. why electric cars expensive in India to repair?
I guess, it’s due to the limited part available, high repair complexity and requirement of specialized technicians.
4. Does EV cars are expensive to maintain?
No, EVs are typically less expensive to maintain because it has fever moving parts.
