Positive Shift In Consumer Mindset Leading To An EV Boom In India
India's EV transformation witnessed an unprecedented acceleration this year. Growing awareness on climate challenges, affordability, government support and improving charging infrastructure are the key catalysts that are encouraging the customers to go electric. The country with schemes and initiatives like Make in India, Atmanirbhar Bharat, PLI and FAME has taken a giant leap towards an electric future. The push to make India a global manufacturing hub has not just unlocked huge economic opportunities but has also made it possible to come up with electric vehicles which are best-suited for Indian needs and conditions. Technology today is rapidly contributing in eliminating the existing bottlenecks such as range anxiety, battery management, and cost. Today, the Indian customers look at electric vehicles as the future of mobility with confidence, and this positive change in consumer mindset is benefiting the EV ecosystem. The key problems to drive adoption of EVs are Awareness, Accessibility to EVs and Affordability.
India has set a target of becoming net-zero by 2070. The menace of air pollution which is already taking a hazardous shape in the national capital and other metropolises of India has made it imperative to take concrete steps to cut carbon-emissions. The consumers are now more aware and responsible and to cut tailpipe emissions, they are finding EVs as the best match. With depleting natural resources and rising fossil fuel costs, EVs naturally become a viable solution for current and future challenges and the customers are increasingly acknowledging it.
Accessibility was another major concern that the consumer would face as very few EV stores or products were available to them. Now we see new product launches and multi-brand platform giving that ease of access to the customer. The emerging technologies today are also enhancing the EV experience for owners. Tech advancements such as IoT (Internet of Things) are not only making owning an EV safer but also making remote management of vehicles easier. The IoT tools are capable of sending alerts to the connected mobile apps. From traffic alerts, weather updates to live locations, they make it extremely convenient for riders to plan their journey. As battery health is crucial for any EV, high end battery management systems give regular updates on battery's condition which result in better utilisation of electricity and higher range. Additionally, in case of emergencies like accidents or theft, the connected device can send instant alerts to ensure on-time assistance and help. The humongous benefits are not only attracting customers but also making EV ownership convenient for them.
In a new category, cost always plays an important role. Petrol prices have made ICE vehicles unaffordable for the larger population. EVs become the most viable option. EV manufacturers are constantly working towards bringing down the cost of EVs. As manufacturing in India is gathering steam, it is becoming possible to make EVs more affordable for Indian customers. The ambitious PLI scheme, Make in India push, EV incentives and more financing options have bridged the gap between consumers and EV makers. Battery, which is one of the major components of an electric vehicle, is a major factor that decides the cost of it. With schemes like battery swapping policy or providing battery-as-a- service, new opportunities have been unlocked not only to make charging faster and cheaper but also for finding new income opportunities for battery service providers. The rising costs of petrol is already burdening vehicle owners and the huge cost benefits offered by EVs is definitely the biggest contributor in high EV adoption recently.
The EV industry undoubtedly has a promising future ahead. As per a recent industry report, the overall sales of EVs are likely to jump to 1,644,000 units in FY25 and go up further to 15,331,000 units by 2030. This growth will be largely led by two-wheelers, followed by three-wheelers and commercial vehicles and passenger vehicles, respectively. Today, the customers are more aware of EV benefits which is overshadowing their hesitancy which existed earlier. As technology develops further and EVs become more accessible and available, the country will fast transform into a global EV hub very soon.
