A recent Global Automotive Consumer Study 2022 done by Deloitte reveals that more than a third of Indian consumers expressed interest in electrified and hybrid vehicles, as the segment sets steam with India's focus on environment-friendly, locally manufactured, and sustainable solutions post-pandemic. According to the study, around 59 per cent of Indian consumers are concerned about climate change, pollution levels, and petrol/diesel vehicles emissions, indicating that consumers' interest in EVs is due to the perception of lower fuel costs, environmental consciousness, and a better driving experience.
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With a sample size of 895 persons, across a range of age bracket between men & women, about 58 per cent voted for a petrol/diesel vehicle as their next purchase, while 21 per cent would opt for a hybrid vehicle. People opting for Plug-In Hybrid Vehicles or PHEVs accounted for 11 per cent, while those wanting a fully electric car consisted of only 5 per cent. However, the report does emphasise the fact that almost 78 per cent of people would opt for electric vehicles that are priced between Rs. 5 lakh to Rs. 25 lakh, considering the subsidies these vehicles attract from the Central and State governments. Another reason listed in the study suggests that a consumer would be drawn towards an EV for its low cost of maintenance, low cost of running, better driving experience, and the tax benefits it attracts.
About 76 per cent of consumers want to charge their EVs at home instead of an office.
The study also suggests that a decision to purchase an electrified vehicle largely depends on the cost of electricity and that if it is in balance with the cost of current fossil fuels, then transitioning to an EV would be a simpler choice. About 61 per cent said they would still be very interested in acquiring an electrified vehicle even if the electricity used for mobility was priced like current fossil fuels, while 37 per cent said they would rethink their decision to acquire an electrified vehicle. Only 2 per cent said they aren't sure if this would change their decision. However, when it comes to charging, about 76 per cent of consumers would want to treat their EVs as a smartphone and charge them at home instead of the office or at a public charging station, for convenience reasons. However, it remains uncertain if charging an EV at home would create pressure on the existing power grid.
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The Indian government also recently revised the rules for the EV charging infrastructure and allowed the respective owners to charge their EVs using the existing electricity connections at homes or offices. This effort will give an additional push to Indians for adopting EVs soon. Beyond being a sustainable solution to the consumers, EVs are also cost-effective. With the rising demand, many auto manufacturers and OEMs have started getting into strategic partnerships to drive adoption across the country. These positive developments have led to an array of investors already showing interest in capitalising on this opportunity.
Almost 78 per cent of people would opt for electric vehicles that are priced between Rs. 5 lakh to Rs. 25 lakh.
Rajeev Singh, Partner, Deloitte India said, “Riding on the crest of evolving customer needs and disruptive innovations, the Indian automotive industry is going to witness a new era of growth. Our latest study delves deep into the changing consumer perceptions indicating a significant increase in the number of consumers who are evaluating alternate power train options and this is likely to drive the growth of EVs (especially two and three-wheelers) in the country.”
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The report also lauds the latest policy developments announced in this year's Union Budget on battery swapping and charging infrastructure, as these are likely to boost consumer confidence and enable a way to address the challenges around adoption. Additionally, the survey also revealed the growth of a latent need for subscription-based models to cater to the ever-evolving needs of millennials and GenZs with its flexible ownership ability. Subscription of services provided by various automakers helps Indian consumers attain a variety of vehicle ownership options without owning it. Consumers have gotten used to rental services and are now looking for long-term solutions that are convenient and cost-effective.
