A majority of Indian consumers, 57%, want to invest in electric vehicles (EVs) because of the practical benefits that they offer, while 56% want to purchase because it is good for the environment, found a report launched by ACKO, tech-first insurance company, and YouGov India.
While the majority of respondents, 60%, believe that India's current public infrastructure is not equipped to support EVs and feel the need for drastic improvement as there is a great deal of optimism for the future. The survey revealed that 89% of the respondents think India will be infrastructurally ready for EVs by 2030. In fact, 66% of respondents believe that EVs will surpass petrol and diesel cars and will be able to save money in the long run.
The report surveyed 1,018 respondents from New Consumer Classification System (NCCS) A & B households between 28 and 40 years of age who were either owners of EVs or were intending to buy one in the next twelve months.
Consumers Believe The Future Is Electric
About 44% of participants want to invest in an EV because they like its flexibility. In addition, they believe that the availability of both hybrid or full electric options will give them the best of both worlds.
Also, 47% of intenders believe that EVs offer a significant reduction in cost per mile compared to traditional options, while 56% of intenders said that they want to be part of the responsible change in approach towards the environment and are interested in new technology.
What's very interesting to note is that when it comes to EV owners, the need to do good for the environment trumps the practicalities that the intenders prefer. For example, 63% of EV owners stated that their choice to go for an EV is a part of their effort to reduce their carbon footprint.
Among the intenders, 62% are concerned about rising fuel prices, and 57% are interested in the latest technology. Besides, 51% said using an EV has lower running costs than petrol and diesel cars. In fact, 48% of the owners said EVs are more cost-efficient per mile than traditional cars.
Impediments
The lack of availability of charging provisions is the biggest concern, followed by the safety issues which keep making headlines. Close to 40% of intenders are concerned about the lack of charging facilities in and around residential spaces. They also expressed a need for more clarity regarding the time taken to charge a vehicle fully. In addition, 40% of intenders have also expressed concern about EV fire-catching incidents that have been all over the news.
Among other reasons of concern are the cost of battery replacement and how frequently it would be needed, as it is one of the primary costs of an EV. They are also concerned about the plausibility of long-distance travel in an EV.
Moreover, 41% of EV owners believe that the vehicle takes much time to charge, and 40% of owners are worried about the lack of charging provisions in residential complexes.
About 49% of EV car owners also believe that battery replacement cost forms a substantial part of EV ownership. One glaring concern is that 43% of EV owners believe that their vehicles' driving experience and performance are not up to the mark compared to traditional vehicles.
Knowledge Gaps
The report also highlights many knowledge gaps related to EVs that need to be filled. For example, 63% of respondents don't know that sand is the most convenient solution for putting out an EV fire. There are also knowledge gaps regarding the life of the battery. For example, 66% assume that the battery lasts only two to five years. However, the majority, eight in 10, correctly recognise that charging behaviour has a role in the EV's battery life.
Another important aspect of owning an EV is insurance, and with their growing popularity, the demand for customised insurance products has also gathered steam; 79% of respondents said they want a customised insurance solution for their EVs, and 67% are ready to pay a premium for that. However, 53% said there is a lack of trusted partners who provide EV-specific insurance products.
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