Future of Mobility in India Rides High on New Age Tech Solution adoption: Deloitte Report has been saved
Future of Mobility in India Rides High on New Age Tech Solution adoption: Deloitte Report
India findings of #AutomotiveSurvey20 #ConsumerBusiness #FutureOfMobility:
Future of mobility is shared, connected and green
- 80% of survey respondents in India are excited about using connected vehicles and are convinced of its benefits
- 74% of survey respondents from India prefer ride hailing service instead of a traditional taxi
- A large proportion of consumers are willing to wait at least 30 minutes to fully charge a BEV
- India tops the chart amongst nations concerned on Data privacy
Unveiling its annual report, Deloitte India today launched the 2020 edition of Global Automotive Consumer Study 2020 highlighting key trends in the automotive sector are shaping consumer perceptions.
According to the study, even as 80% of survey respondents in India are excited about using connected vehicles and are convinced of its benefits, concerns over security remain constant.
In addition, 69% of survey respondents are also worried about the security of their biometric data shared with connected vehicles and India tops the chart amongst nations who are concerned about data protection.
Owning a personal vehicle has become more expensive because of rising cost of fuel and emergence of BS VI emission norms and about 64% of India’s Gen z/GenY survey respondents are questioning the need to own a vehicle as opposed to 51% respondents who were surveyed last year.
Commenting on the launch of the report, Rajeev Singh, Partner and Automotive leader, Deloitte India said, “Automotive sector in India still battles with critical issues of sales slowdown at one end whilst at the other there is a constant inclination of technology adoption and best use of research and development in India.
While last year hurt the automotive players in the short term, the rising sales of internet connected cars and growing interest around BEVs, has shown an evident factor of India’s discerning millennials tech saviness to gain value for money that will keep the automotive players on their toes. We see a disruptive yet profitable road ahead for the OEMs and the automotive players as they work to shape an enriching customer experience for Gen Z and millennials constituents, who have a unique outlook on life.
Our consumer survey indicates Indian consumers are open to the idea of investment for advanced vehicular technologies and this trend has improved over the years , one of the key areas for OEMs to focus on.”
Although perception about connected vehicular technologies has seen a positive shift, Indians are on the fence about safety of autonomous vehicles and the ability of automakers to get them on the road. Percentage of consumers, who agree that autonomous vehicles would not be safe to use is expected to go up by 10% this year.
Another important trend is around battery charged and alternate powertrain vehicles. Interest in this technology continues to expand. In fact, as per the report, interest in battery electric vehicles (BEVs) would rise if fossil fuel prices increased significantly. However, because of the inadequacy of right infrastructure majority of consumers across markets may not be ready just yet to pay extra for an EV. Consumers in most geographies agree that it is the responsibility of either OEMs or governments to set up a network of EV charging stations.
Key highlights of the report:
- Consumers’ trust in the idea of AVs declines: Consumers in India and the rest of the geographies continue to question the safety of autonomous vehicles (AVs) and the ability of traditional automakers to bring fully autonomous technology to market
- Green and smart mobility to define India’s automotive sector: Connected cars are poised to become a common phenomenon in India in the near future. And their relevance in the next few years is only bound to increase with the expected wide-scale adoption of BEVs where connectivity features will help owners locate nearby charging stations and access telematics data among several other things. Howevever, consumers in some countries are not willing to pay very much extra for an EV.
- Challenges in getting connected vehicles on the roads in India – India as a price driven market and averse to paying higher prices for new technology: In India, OEMs are not the top choice in terms of trust for sharing of data by consumers. Moreover, in the time to come OEMs are expected to struggle to get consumers to pay for advanced connectivity features, even when it means increasing road safety. The perception of Indian with respect to safety while driving connected vehicles is also very low
- Rising popularity of ride hailing in India and willingness of younger generations to give up vehicle ownership. As per the report, the number of people reporting at least occasional use of ride-hailing services has increased in the last few years as consumers see multiple benefits.
About the Global Automotive Consumer Study
From September through October 2019, Deloitte surveyed more than 35,000 consumers in 20 countries to explore opinions regarding a variety of critical issues impacting the automotive sector, including the development of advanced technologies. The overall goal of this annual study is to answer important questions that can help companies prioritize and better position their business strategies and investments
Notes to the editor for reference purposes only:
This press release has been issued by Deloitte Touche Tohmatsu India LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.
Deloitte India herein refers to Deloitte Touche Tohmatsu India LLP.