Tata Motors claims that a 20% increase in battery cell costs is increasing short-term pressure1 min read
Tata Motors, India’s top-selling electric manufacturer, claimed the cost of battery cells had risen by roughly 20% due to a global jump in raw material costs, mostly lithium, putting the firm under pressure in the immediate term.
Cell costs have been growing for months, according to Shailesh Chandra, president of the passenger cars business unit, and he expects them to remain high for nearly a year.
“The immediate impact appears to be a 20% increase, which will put pressure on the market in the short run. This should level off within a year and then begin to decline”, He stated.
Tata recently increased the price of its Nexon electric SUV in India by more than $300, representing a 2% increase for the base model, after similar movements internationally by Tesla and China’s BYD. “This inflationary impact is projected to persist in the future”, says Manish Dua of Benchmark Market Intelligence. Electric cars account for barely 1% of total automobile sales in India’s embryonic EV sector.