Factors such as rising fuel prices and climatic conditions have led Indian consumers to prefer EVs (electric vehicles) over conventional IC (internal combustion) vehicles, irrespective of geopolitical conditions and the “permacrisis” effect. This gradual increase in interest can also be linked to policies and promotional measures such as FAME-II, PMP (Phased Manufacturing Programme), and National Mission on Transformative Mobility and Storage announced by the central government over the past few years. Increase in adoption of EVs.
According to a survey by EY, it is estimated that 90% of Indian consumers are willing to buy an EV at a premium. This proves that consumer behavior towards EVs has changed. Hence manufacturers are keen to innovate and bring cost-effective automobile solutions in the market to meet the growing needs of the Indian consumers. So what is the reason for this paradigm shift?
Factors leading to increase in adoption of EVs
In the last two years alone, the EV segment has grown dramatically. According to the Federation of Automobile Dealers Associations, two-, three- and four-wheeler electric vehicles saw a growth of 668 per cent in the last financial quarter alone. Apart from important factors like costlier crude oil imports, sustainability and climate change, some of the factors listed below are driving the growth of EVs.
Growing range of vehicles: This is the major factor which is influencing Indian consumers to consider buying an EV. Due to the advent of technological advancements, the range concern with EVs has disappeared. Indian EVs in the 2W segment can travel on an average of 100-170 km on a single charge, which has piqued the interest of many daily commuters.
Vehicles with futuristic design and hi-tech features: Features like digital key unlocking, voice control, geofencing alerts, reverse assist and smartphone assisted controls are attracting Indian customers. OEMs of new technology are also building products that reflect the needs of consumers.
Proactive OEM: Automobile companies are now venturing into retailing, servicing and charging infrastructure. They are making extra efforts to sell direct to the customers, providing financing options, free services and hassle free component replacement.
TCO Reduction: There was a general grudge earlier among Indian buyers about EVs: It’s expensive. Even though the upfront cost of an EV looks premium, the total cost of ownership is still low when compared to its IC counterparts. The cost of charging is now 70%-80% less than the cost of fuel. Also, because EVs have fewer parts, maintenance costs are reduced by 30%-40%.
In a comparison of TCO between EV and IC vehicles, it was found that EVs are 50% cheaper to own and maintain over the lifetime of the vehicle than their IC counterparts. According to the Indian government’s vehicle dashboard, 76,657 high-speed E-2W vehicles are expected to be sold in October 2022, compared to 19,264 in October 2021. This proves that Indian consumers are becoming aware of the benefits of electric vehicles, and the market will feel the same. increase in adoption
Benefits of owning an EV
Earth’s supply of fossil fuels is limited, and their use is depleting it. Toxic emissions from gasoline and diesel vehicles have long-term negative effects on public health. Electric vehicles (EVs) have zero tailpipe emissions and follow a sustainable approach that is beneficial to the environment, and Indian consumers are aware of this. Also, EVs have lower registration and road tax as compared to petrol or diesel vehicles. Here are some other benefits of EVs for which consumers are changing their buying preferences.
A Quiet and Smooth Driving Experience: Electric vehicles do not have gears and are very easy to drive. In addition, they are quieter as well, which helps reduce noise pollution caused by conventional vehicles.
Convenient Charging: Today’s technological advancements allow EVs to be charged at home for 4-5 hours before going on a trip. Furthermore, vehicle owners can make use of fast chargers or even battery swap services in case they experience an emergency.
Low running and maintenance cost: Electric vehicles are more efficient, and when combined with the cost of electricity, charging an electric vehicle is less expensive than filling up with petrol or diesel. Electric vehicles require less maintenance than their counterparts. As a result, the annual cost of running an EV is significantly lower.
all things Considered
Mobility and transportation have made significant progress in the last decade. Environmentally and socially responsible transportation is more important than ever in human history. Even though the EV story in India is still in its nascent stage, consumer focus and concerns have shifted, especially when it comes to electric two-wheelers.
According to NITI Aayog and RMI, EV sales will reach 80% for two-wheelers and three-wheelers and 50% for four-wheelers by 2030, indicating a new opportunity for both growing startups and traditional OEMs. Indian consumers’ confidence in new-age mobility is growing rapidly, and as a result of an overall surge in demand, EVs are set to become the next big thing in mobility.
This article has been written by Nemin Vora, CEO, Odyssey Electric Vehicles. All views are personal.