Nearly 90% of consumers in India are willing to pay a premium for buying an electric vehicle (EV), with over 40% of respondents ready to pay a premium of up to 20%, according to the EY Mobility Consumer Index.
The EY Mobility Consumer Index was participated by more than 9,000 respondents from 13 countries, including 1,000 from India.
The survey revealed that EV sales are expected to boom over the next 12 months.
A majority of the respondents surveyed in India consider a driving range of 100 to 200 miles from a fully charged EV. Existing and future EV owners who intend to buy a car have a relatively higher preference for digital channels than existing and future ICE owners.
The survey found that the top reason for buying an EV concerns the environment, with 97% also stating that the COVID-19 pandemic has heightened awareness and concerns about environmental issues. Additionally, 67% of those looking to buy an EV feel it is their responsibility to reduce their personal environmental impact, and 69% feel purchasing an EV is one way to achieve this goal.
Vinay Raghunath, Partner and Automotive Sector Leader, EY India, said, “The reducing gap in the cost of ownership between electric and other technology platforms and the increasing segment of consumers vocal about environmental impact will drive a fundamental change in consumer buying behaviour for EVs. Consumers are willing to pay extra for an added value of being environmentally responsible.”
As per the survey, potential car buyers desire an evolved retail experience with a mix of online and offline channels across different stages of their car-buying journey as they seek a seamless OMNI channel experience, price transparency, superior purchase experience, and visibility into financing options.
Forty-nine per cent of respondents in India strongly agree to complete all the paperwork online rather than at the dealership, while 69% seek an opportunity to get a quote and secure vehicle financing online. For all countries, the MCI reflects that a relatively higher percentage of Gen Z and millennials prefer online channels for car purchase; respondents in medium-sized cities are inclined towards online channels for a final car purchase.
Som Kapoor, Partner, Automotive sector, EY India, said, “COVID-19 has accelerated changes like digitalisation in the auto retail ecosystem. This change is a significant opportunity for OEMs and dealerships to streamline their operations by unlocking capital from redundant infrastructure while taking on a wider service portfolio that contributes to better margins.”