Climate Dot Electric Vehicle Price Parity Model

Introduction

The cost of Electric Vehicles (EVs) in India has been decreasing significantly in recent years on account of falling battery prices and economies of scale. However, despite these reductions, EVs still remain more expensive than their equivalent Internal Combustion Engine (ICE) counterparts. This price difference makes government incentives essential for achieving price parity and accelerating mass EV adoption.

The Climate Dot Electric Vehicle Price Parity Model, is an interactive, visual tool designed to help researchers and policy-makers analyse the difference in the ex-showroom price of EVs and their ICE counterparts (across 2, 3 and 4 wheelers) over time. The model aims to answer a key question: “When will EVs reach price-parity with ICE vehicles”. The results can directly help policy-makers adjust EV incentives to accelerate rapid EV adoption in India.

The tool allows users to customize various input parameters, including:

• The vehicle tier (entry, mid or premium)
• Ex-showroom price
• Battery size
• Subsidies
• Inflation of components

The detailed methodology behind the tool can be found here.