Energy Department on course to reduce cost of electric vehicles

By Bosky Khanna| Express News Service | Published: 14th June 2022 07:09 AM

BENGALURU:  To encourage people to purchase electric vehicles and reduce the dependency on fossil fuel, the Energy Department is holding talks with the Ministry of Transport, the Finance Department as well as the manufacturing sector on how the cost of vehicles can be reduced.

At present, the subsidy for electric vehicles rests with the manufacturers and a limited is passed on to consumers. But to encourage more vehicles on the roads, the subsidy and benefit needs to be passed on to the customers. With this in mind, the Bangalore Electricity Supply Corporation Limited (Bescom) officials had recently held a workshop with companies.

The cost of EVs costs anything between Rs 1 lakh to Rs 1 crore. But the cost of the battery alone is around 40 per cent of the vehicle. The department is aiming to reduce this to cut the cost of the vehicle by 20- 30 per cent so that more people are buy them. Many are also burdened with the after sale services and maintenance. The feedback they are giving to their friends is also becoming a deterrent.

According to records at present, there are 2-3 lakh EVs (two and four wheelers) on Bengaluru roads and much less in other districts. As the Bescom is setting up more charging stations, they are also holding talks with companies to understand how the cost can be reduced.

A senior energy department official said the cost of vehicles is high because of the high battery cost and also limited demand. “Also even as many companies are manufacturing EVs, but the quantity produced is less thus the cost of sales is high. The cost is demand-based. So we are at present laying thrust on setting up more charging stations and creating an infrastructure network which should encourage people for purchasing EVs,” the official said.

Tags : Bangalore Electricity Supply Corporation Limited

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