[84.monsoon]

Kia has announced deep discounts on the EV6 - it is available for 49.99 lahs for a limited period. I guess this is not the AWD variant, but still, a significant drop of 18% in price from 61 lakhs it has been retailing at previously. I guess AWD may also be available at a similar deep discount, maybe for 55 lakhs or so. I am sure Hyundai will soon follow suit and cut the Ioniq5 prices by 8-10 lakhs soon, which has been a long time coming.

To me this is yet another proof point of how fickle the value retention is on EVs. What was yesterday's hot car, which was also the World Car of the Year winner, dropping prices by 18% with an 18 months of launch! Imagine the plight of less desirable brands like BYD!

BYD does offer reasonable up front prices But I think the secondary market value of these cars will drop like a ton of bricks in 18 to 24 months, once the initial Euphoria wears off.

[m8002?]

I think the reason for this is that EVs are more like "gadgets" and not machines. Hence the initial pricing and the discounts later will be like any electronic gadget.

• Launch at a high price for skimming the early adopters
• Reduce prices to pull in the followers.
• Quick end of life within a couple of years.

The fast development of technology is also not helping which makes the previous version outdated in a year. I see a pattern very similar to LED TVs and Smartphones. In the 2010-2020 years, every iteration had a bunch of new features. But now they have plateaued and become a commodity. There is no real big change or advancement in the 2024 version compared to 2022 version.

[SR-71]

Originally Posted by 84.monsoon

I am sure Hyundai will soon follow suit and cut the Ioniq5 prices by 8-10 lakhs soon

I somehow doubt that. The Ioniq5 is retailing close to prices that it retails elsewhere in the world. The EV6 on the other hand was costing a bomb due to the higher tax component as it took the CBU route. With this cut they have brought this relatively on par with what it costs in rest of the world, similar to Ioniq 5. Perhaps KIA is planning to get the updated 2025 EV6 to India, probably in CKD route similar to Ioniq5? This would help them price it reasonably and would make sense for them to get rid of the existing kits that are already imported before getting in the updated model. Even if they stick to the CBU route and exorbitant pricing for the 2025 refresh, this price makes it a lot more compelling buy for the current stock.

[sunikkat]

Originally Posted by 84.monsoon

To me this is yet another proof point of how fickle the value retention is on EVs. What was yesterday's hot car, which was also the World Car of the Year winner, dropping prices by 18% with an 18 months of launch! Imagine the plight of less desirable brands like BYD!

Agree, EVs are proving to be like gadgets in most of the aspects. Similar to a mobile phone when a new version launches the older one price reduce significantly. That’s what we are seeing in EVs too. Some brands price drops like android models while others like IPhone. This is only going to make it bad in resale market.

On ICE cars, people still buy >10 years old BMW, VAGs, Mercs etc. and even do performance mods after which the cars are still hot to drive. Can we imagine buying a similar vintage EVs?

[Precision]

Originally Posted by 84.monsoon

Kia has announced deep discounts on the EV6 - it is available for 49.99 lahs for a limited period. I guess this is not the AWD variant, but still, a significant drop of 18% in price from 61 lakhs it has been retailing at previously. I guess AWD may also be available at a similar deep discount, maybe for 55 lakhs or so.

Is it because they are clearing inventory to launch the facelift model? Global launch of the facelift was done a couple of months ago.

[indian21r]

Also the Battery prices are falling rapidly. Maybe benefits are getting passed on for now

[privin]

Two aspects: Electronics are reliable over long time. If EVs are also reliable in same way and are good for 10 years, the image will improve over time. But as of now, BMS is main culprit (at least in Tata EVs).

Second, third party enhancements and repairs of all parts. Presumably the architecture is simple. But main control unit is currently proprietary. So we are stuck on this aspect, but I hope expertise will increase. Ideally it should be open sourced...

[shyampsunder]

Not sure why there is so much pessimism on this news

Haven't we been reading that EVs cost much more than ICE and that is a big factor slowing their adoption?

For whatever reason, if prices are falling, isn't it a good thing for the consumer? Would we prefer an OPEC like cartel in cars artificially manipulating prices?

About EVs being gadgets, not sure what price has anything to do with it. Take any OEM, their EV drive train warranty is much longer than what they offer on their ICE vehicles, obviously they know the life of the products they produce better than us and it is clear what they think about EVs.

If you are someone who keeps buying and selling cars every 3-4 years, I understand that EVs may provide a lower resale value but pretty much every car is a depreciating asset and you are pretty much bound to lose money especially when you consider the opportunity cost of money.

As an owner of an EV and someone who keeps vehicles for a minimum of 10 years, I am very excited by what the market is offering.

I believe this is a once in a generation opportunity to buy world class cars without paying eye watering taxes. Buying a luxury ICE was a distant dream for me, with EVs it has become possible and I am looking forward to buying a solid luxury EV before govts' start hiking up taxes on this segment

[Aditya]

Kia announces discounts on the EV6 | Available for Rs. 49.99 lakhs - Posts moved to a new thread.

[soarersc300]

Originally Posted by shyampsunder

I believe this is a once in a generation opportunity to buy world class cars without paying eye watering taxes. Buying a luxury ICE was a distant dream for me, with EVs it has become possible and I am looking forward to buying a solid luxury EV before govts' start hiking up taxes on this segment

Range is one of the key specifications of an EV just like how power or torque is to an ICE. If you buy a 6 cylinder BMW (340i) or an Audi (Q7) today it's highly likely that these will be replaced with 4 cylinders and less powerful engines 10 years hence. On the other hand if you look at EQB or an iX1 you can be sure that these will be rare 10 years down the line for exactly the opposite reason - to be the worst when it comes to range.

As all these vehicles are sold in India between 70 to 100 lacs, there is no clear advantage (even with tax benifits) to buy an EV if you are looking to get a luxury brand. It still makes enormous sense to get a 330Li or an A6 or an GLC or an E LWB or a Q7 - all proper luxury cars in the 70 to 100 price range. You could sell these at good prices 5 or 10 years down the line and then probably think about EVs from luxury brands

[84.monsoon]

Originally Posted by shyampsunder

I believe this is a once in a generation opportunity to buy world class cars without paying eye watering taxes. Buying a luxury ICE was a distant dream for me, with EVs it has become possible and I am looking forward to buying a solid luxury EV before govts' start hiking up taxes on this segment

Even with the current heavy incentives (5% ST versus 43-38% AND zero-road- tax in many states, versus 20% road tax in most states), EV sales are nose-diving. How can one not be pessimistic if one buys a luxury EV like the EV6 in 2022 and sees massive price cuts right from the manufacturer plus market depreciation of 40-50 % in 3 years? The used car market for a used EV6 from say the 2022 vintage will straightways mark down the market price to 49.95 and then start depreciating based on age and usage. A 2.5 year old EV6 will probably take a depreciation hit of 40%, off this price, commanding a market price of 30 lakhs - a 50% depreciation into total from what the owner paid at first. ICE cars do not depreciate so much in 2.5 years.

One of the reasons for this rapid value erosion is the base of technological change and scale effects that are rapidly driving down EV cost. There is a raft of new models being introduced for shockingly low prices thanks to MG and BYD. the MG Windsor for example is almost as spacious as an Ioniq5, a car from a much higher segment. Yet, it costs a third of what an Ioniq5 costs. ₹15 lakhs on-road.

[ajmat]

I love this car but I love my investments even more so I would reluctantly avoid!

[yosbert]

Originally Posted by 84.monsoon

the MG Windsor for example is almost as spacious as an Ioniq5, a car from a much higher segment. Yet, it costs a third of what an Ioniq5 costs. ₹15 lakhs on-road.

This is similar to comparing an iphone to an Oppo based on screen size (taking the gadget to EV analogy which some of the members here are so fond of).

As others have mentioned, there are people who do not change their cars every 2.5 years but like keeping their cars for 10 years or more. When I bought my Atto3, I did see value in the 35 big ones I was putting in for the car at the time and I was/am happy with the choice I made. I do not need constant validation of my choice from the market in terms of price of new car or resale value of old car. Of course this works for my kind of car ownership and may not work for someone who changes his car every 3-4 year like his phone (sorry couldn't resist the gadget analogy again).

[djay99]

EV's will continue to depreciate more than their ICE counterparts mainly due to advancement in technology, especially the battery capacity. What was once a long range is medium now, and I believe 50kwh will be norm in the coming year or two.

Kia/Hyundai have reduced prices here in EU, and are now offering 0% interest loan for upto 6 years yet having tough time shifting stock. Interesting times ahead.

[GoBabyGo]

Hi, we can also put in this way:

If you buy an ICE car 1.5L NA engine in 2024 which cost Rs. 16.50 lacs, the same car will likely to be available at 21 lacs after 5 years (2029).

If you buy an EV car with 40kWh (or 38kWh) in 2024 which cost Rs.16.50 lacs, the same car may be available at 12 lacs after 5 years (2029)

2024 bought ICE car depreciation after 5 years 40% e.g. 16.50 lacs minus 40% = 9.90 lacs. Same new car available for 21 lacs after 5 years so one has to invest Rs.11.10 lacs to buy similar car after 5 years.

2024 bought EV car depreciation after 5 years 70% e.g. 16.50 lacs minus 70% = 4.95 lacs. Same new car is available for 12 lacs after 5 years so one has to invest Rs.7.05 lacs to buy similar car after 5 years. (I am just guessing that may be one can buy 82kWh battery pack EV for 20 lacs after 5 years)

Needless to mention saving on fuel would be approximately 6 to 7 lacs on an EV in 5 years (between 2024 to 2029).