Home >Auto News >EVs to reach price parity with ICE vehicles before 2025: JSW Energy

NEW DELHI: In what may help expedite India’s push towards green mobility, electric vehicles (EVs) are expected to reach price parity with Internal Combustion Engine (ICE) vehicles before 2025, according to Sajjan Jindal-led JSW Energy.

JSW Group had plans to venture into the segment but they were eventually dropped. JSW Energy plans to have a 20 GW portfolio by 2030. Indian energy majors are pivoting towards green economy. A case in point being Reliance Industries Ltd (RIL) announcing its plans to set up an Advanced Energy Storage Giga Factory.

“Electric vehicles (EVs) are expected to reach upfront price parity with Internal Combustion Engine (ICE) vehicles before 2025, spurring faster adoption thereafter. Cost curves will continue to decline for EVs given the influx of OEMs undertaking environmental pledges and new models yielding over 200 miles per charge is likely enough to dispel range anxiety as a real concern—especially as most consumers drive less than 50 miles in a day," JSW Energy said in its 2020-21 annual report released on late on Tuesday.

There is growing traction for India’s playbook for developing a battery storage ecosystem that involves setting up 50-gigawatt hour (GWh) manufacturing capacity for advance chemistry cell batteries by attracting investments totalling Rs45,000 crore.

"One of the key drivers behind the recent uptake in electric vehicles is the massive decline in battery costs. For now, rapid improvements in lithium-ion battery costs and performance have outweighed supply chain sustainability concerns, propelling yet another virtuous cycle within Energy Transition," the annual report said.

Mint reported on 3 June about RIL, Adani Group, Bharat Heavy Electricals Ltd, Tata Chemicals, Larsen and Toubro Ltd, Greeenko Group, Renew Power, and a joint venture led by Japan’s Suzuki Motor Corp. among companies who have shown interest in building lithium-ion cell manufacturing plants in India.

“Storage batteries get cheaper over the outlook via synergies with growing battery demand for electric vehicles. Batteries take advantage of a peakier intraday net load curve, predominantly pairing with PV in sunny regions to meet demand after the sun sets. This is particularly true where other types of peaking capacity are expensive and where wind resources are strongly seasonal," the report said.

As part of its energy transition efforts, India is working towards electrification of economy by developing action plans for greening of electricity.

“The electrification of India’s transportation sector will impact vehicle segments consisting of two- and three-wheel models given less expensive total costs of ownership (TCOs) relative to ICE vehicles, further underscored by a large number of recent venture capital deals in the space targeting “last mile" charging connectivity and infrastructure," the report said.

State run Convergence Energy Services Ltd (CESL) plans to supply electric two-wheelers to states such as Andhra Pradesh, Kerala and Goa, and aims to have 200,000 two-wheeled EVs and 300,000 three-wheeled EVs across India.

CESL plans to halve the cost of ownership of these vehicles through incentives offered under phase 2 of the Union government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme, state government subsidies, support from EV makers and carbon credits that will be earned under the United Nations’ Clean Development Mechanism (CDM).

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