The continuous fall in battery prices, which has been a significant factor in the competitive pricing of electric vehicles (EVs) against their petrol or diesel counterparts, may soon come to a halt as battery costs are beginning to stabilise.

What Happened: Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Electric Mobility, has indicated that cell prices, which form the core component of EV battery packs, have now stabilised. This could potentially mean an end to further price reductions for EVs, reported Financial Express. Chandra stated that he does not anticipate any significant price corrections in the future due to the stabilisation of cell prices.

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The global weighted average cell price per kilowatt-hour (kWh) has seen a 40% drop to $78 (around ₹6,500.) in September 2024, down from $119 (around ₹10,000) in 2022, as per data from intelligence firm Benchmark Minerals. This price reduction has been instrumental for Tata Motors in competitively pricing its latest electric car at ₹17.49 lakh, the Curvv, against petrol or diesel cars.

Tata Motors Nexon EV has also seen a price reduction of 18% in two years to ₹14.59 lakh in ex-showroom prices. Analysts believe that the future of EV pricing will largely depend on the development of new battery technologies, such as sodium ion and solid-state batteries.

Other factors such as regulatory changes, inflationary pressures, and technological advancements in engine efficiency could also contribute to an increase in the cost of internal combustion engine cars, further reducing the price gap with electric cars. This could potentially lead to a shift in consumer preference towards EVs, despite the stabilising battery costs.

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