- Vehicle Ownership: Only 3.3% of India’s population owns cars, indicating vast growth potential.
- EV Interest: 36% of consumers are considering electric vehicles (EVs) for their next purchase, with 30% leaning towards electric two-wheelers.
- Comparison with Developed Markets: India’s automotive market has more room for growth compared to high-penetration markets like the U.S. and Denmark.
Consumer Preferences and Gender Influence
- Women’s Influence: Women impact 52% of EV purchase decisions, up from 38% for non-EV vehicles in India.
- Tech Preferences: 41% of two-wheeler owners prefer vehicles with in-built navigation systems, signaling a shift towards tech-savvy vehicles.
Barriers to EV Adoption
- Charging Infrastructure: 50% of consumers are concerned about the availability of charging stations.
- High Costs: 45% are dissatisfied with the high purchase costs of EVs.
- Battery Life and Model Variety: One in three are concerned about battery life, while 20% feel current EV models lack variety.
Solutions to Overcome Challenges
- Infrastructure: Expand and improve the discoverability of charging stations.
- Financing: Offer innovative financing options to reduce acquisition costs.
- Local Manufacturing: Scale up production to lower costs and increase variety.
- Battery Health: Enhance transparency on battery life and provide extended warranties.
- New EV Models: 60% of new EV models will be developed by Indian OEMs to meet diverse consumer needs.
Impact of High-Income Households
- Wealth Growth: A 2.7-fold increase in elite households by 2035 will make higher-priced EVs more affordable, boosting market growth.
Preference for Pre-Owned Vehicles
- First-Time Buyers: 25% of first-time car buyers are interested in pre-owned vehicles.
- Market Influences: Digitization and trust in local selling platforms are key drivers for the pre-owned vehicle market.
Future Trends
- Car Rentals: Gen Z is 2.7 times more likely to use self-drive rentals, indicating a shift towards on-demand transportation.
- Influence on Purchases: 85% of rental users are open to purchasing the car model they rented, demonstrating the growing impact of rental experiences on buying decisions.
