More than a third of Indian consumers have expressed interest in electrified and hybrid vehicles, as the segment sets steam with India’s focus on environment-friendly, self-manufactured, and sustainable solutions post-pandemic, the Global Automotive Consumer Study 2022 by Deloitte has said.
According to the study, 59% of Indian consumers are concerned about climate change, pollution levels, and gasoline/diesel vehicles emissions, indicating that consumers are interested in EVs due to the perception of lower fuel costs, environmental consciousness, and a better driving experience.
Complimenting these efforts are also the latest policy developments announced in this year’s Union Budget on battery swapping and charging infrastructure. These developments are likely to boost consumer confidence and enable a way to address the challenges around adoption, the consumer study mentioned.
On the launch of the report, Rajeev Singh, Partner and Automotive Leader, Deloitte India, said that riding on the crest of evolving customer needs and disruptive innovations, the Indian automotive industry will witness a new era of growth. The 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, he said.
“Additionally, we have also witnessed 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,” he added.
Subscription of services provided by various auto brands helps Indian consumers attain various vehicle ownership options without actually buying them. Consumers have got used to rental services (chauffeur and self-driven) and are now looking for long-term solutions that are convenient and cost-effective, the study said.
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 in the near future.
Beyond being a sustainable solution to the consumers, EVs are also cost-effective.
With the rising demand, many auto manufacturers and Original Equipment Manufacturers (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, the study noted.
Personal Data
According to the study, consumers in India has a growing appetite for personalising products and services. Many of them are willing to share more of their personal data in exchange for less congested (83%) and safer routes (83%), and vehicle health reporting/lower maintenance costs (84%). Since the pandemic, Indians have become more convenience-driven and prefer getting very targeted services and offers.
Subscription Services
Indian consumers look at car ownership as a service and not an asset with various liabilities, including additional maintenance costs and service hassles, besides tonnes of paperwork. As per the survey findings, 70% of the Indian respondents are interested in a subscription that allows access to different models from the same brand; 72% are interested in different vehicle brands, and 69% are interested in pre-owned vehicles.
In-person Experience
As per the survey, online sales of vehicles have picked up across geographies where India is leading the chart: 68% of people still want the look and feel of a vehicle before actually making the purchase.
The survey analysis shows online vehicle sales amongst Indian consumers would be majorly due to convenience (32%) followed by ease of use (27%) and speed (23%).