PRICES OF ELECTRIC VEHICLES ARE RISING DESPITE BATTERIES GETTING CHEAPER

We know that electric vehicles are gaining popularity quite rapidly throughout the world. There is more than one reason for it, electric vehicles are environmentally friendly and produce very less harmful emissions which contributes to a sustainable environment. Apart from being environment friendly, they have some other advantages for end consumers as well forex. Low running cost, low or almost no maintenance etc. As the awareness in society is increasing sales of electric vehicles are increasing as well. With this rising popularity, continuous research and innovation are going on to enhance the performance of these electric vehicles, and a lot of success has already been achieved. Not only in terms of performance but manufacturers are continuously trying to make visually impactful vehicles. 

As we know batteries are the most important component of electric vehicles and the most expensive as well. When electric vehicles came into existence all the talk was about batteries, questions which were raised ranged from the availability of such powerful batteries to their cost and battery life. After so many years a lot of these questions have been answered.

 

The performance of lithium-ion batteries in terms of power and energy along with 

features like high density, low self-discharge and long-lasting makes them the most preferred choice for an electric vehicle. Also, prices of these batteries have come down significantly which has given an added push to the growth of the electric vehicle segment. Today's market is flooded with affordable lithium-ion battery suppliers who are more than willing to supply these batteries at affordable pricing. Affordable lithium-ion battery suppliers are making a profit with the kind of volume that they are generating. Out of many reasons for the reduction in the cost of these batteries is the incentive given by governments as they see it as one of the green solutions for energy. With the alarming rise in pollution levels globally, governments are paying extra attention in terms of finding green solutions for energy. 

But despite battery prices coming down prices of the electric vehicle have gone up significantly which is too many a surprise and people are not able to digest this fact. Talking about numbers since 2012 battery prices have gone down by 80% and the average prices of electric vehicles have gone up almost 80 per cent.

 

Since batteries are the most expensive component of the electric vehicle their prices have come down significantly but the rise which we are seeing in the prices of an electric vehicle is mainly because manufacturers are focusing on the luxury segment before expanding into the mass-market segment. Also, the recent shortage in semiconductors and factory shutdowns during the pandemic lead to price hikes, but these are minor reasons. The main reason for this price hike is the focus of manufacturers focuses on making luxury segment vehicles, it is a very common practice by automotive makers that when they switch to new technology, they use on expensive cars so that they can at least bear the cost of new technology once they start selling more units, they shift their focus to relatively cheaper cars. Once the volume of production goes up with new technology cost of production comes down which gives leverage to the manufacturers, and they make more affordable models.