Reasons Why Electric Cargo Vehicles are Expensive
The adoption of EVs has picked up steam in recent times. However its price is higher as compared to ICE cargo vehicles and that has been a stumbling block. What most people do not yet understand though is that although the initial investment for an electric three wheeler may be more, it more than makes up for it in its low running, maintenance, and repair costs. The fewer moving parts of an electric three wheeler cargo vehicle results in low repair and maintenance costs of the vehicles. But here’s the explainer on why EVs are expensive in the first place.
What makes an electric load auto expensive?
An EV is made up of 3 essential parts: the electric motor, the transmission, and the battery pack. It is the battery pack that is the most expensive and contributes to almost 30-40% of the price of the vehicle. The batteries are mostly made of lithium-ion, a metal that is incredibly valuable and costs almost 7 times more than lead of the same weight. Moreover, the anode and cathode of the batteries contain expensive materials like cobalt and nickel too.
Apart from being expensive, these materials are not easily available everywhere. They are scarce and are mined only in specific geographic areas. Importing them adds to the cost, during 2018-2019, India imported lithium-ion batteries worth $1.23 billion. Another factor that adds to the cost of the EV is the shortage of skilled personnel, due to which production and repair of an EV 3-wheeler seem like a task.
So, is it worth buying an electric load vehicle in India?
Massive efforts are being made all around to create technologies that will lower the cost of battery-load autos. According to Bloomberg New Energy Finance (BNEF) forecasts, there is a strong possibility that the cost of lithium-ion packs may reduce to INR 7500 by 2024.
Although the initial investment for an electric three wheeler may be more, it more than makes up for it in its low running, maintenance, and repair costs. For example, a kilometer on a diesel 3-wheeler costs Rs.4.40, whereas it costs just Rs.0.92 on an Altigreen NeEV. The fewer moving parts of an electric 3 wheeler results in low repair and maintenance costs of the vehicles.
The Indian government's FAME scheme to promote adoption of electric vehicles offers financial incentives to buyers, manufacturers and suppliers of EV components. To further support this initiative and encourage the consumers, the Indian govt. has reduced the GST and provides subsidies and tax waivers for EVs.
Among the varied choices in three wheeler EVs, the Altigreen neEV can be a cost effective and profitable option. Altigreen neEV offers viable financing options making it an offer one can't refuse!
- Term loan from banks with specified borrowing terms and a fixed or floating interest rate.
- Battery subscription plan to reduce upfront costs.
- Leasing option for a predetermined time period
- MUDRA loan facilitated by the government for small business
Although a battery cargo vehicle price may seem expensive initially, the low maintenance and repair costs, the sops offered by government agencies, and majorly the savings made on fuel make electric cargo vehicles a very feasible buy. Plus the recent discovery of lithium deposits in J&K may make the EVs much more affordable sooner than we think!
