The price gap between electric vehicles (EVs) and internal combustion engine (ICE) cars is rapidly closing, with EVs expected to reach price parity with petrol and diesel vehicles in the near future. Falling battery costs and deeper localisation of EV components are key factors contributing to the narrowing cost difference.
Battery packs, which account for a significant portion of EV manufacturing costs, are becoming cheaper, allowing automakers to pass savings into showroom prices. Dedicated EV platforms, such as Gen 2 skateboard architectures, are reducing production complexity and costs compared with retrofitted ICE platforms.
Analysts suggest that continued declines in global battery prices and streamlined EV production could allow electric vehicles to match or even surpass ICE vehicle pricing across various segments in the coming years, accelerating adoption in markets like India.
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