The Future of Mobility in India is Electric has been saved
The Future of Mobility in India is Electric
Deloitte Global Automotive Consumer Study 2022
- Seventy-six percent of the Indian consumers expect to charge their Electrified Vehicles (EVs) at home.
- Most people in Japan, India, and the US plan to charge their Plug-in Hybrid Electric Vehicle (PHEV)/Battery-powered Electric Vehicle (BEVs) at home.
- Personal vehicles still remain the most used transportation mode.
- Middle-aged consumers are interested in subscription services to own a vehicle
National, 9 February 2021 – Deloitte’s Global Automotive Consumer Study 2022 demonstrates a shift in mobility trends. More than a third of Indian consumers have expressed interest in electrified and hybrid vehicles, as the segment sets steam with India’s focus on environment friendly, self-manufactured, and sustainable solutions post pandemic.
According to the study,59% Indian consumers are concerned about climate change, pollution levels and gasoline/diesel vehicles emissions, indicating that consumers interest in EVs is due to the perception of lower fuel costs, environmental consciousness, and a better driving experience.
Complimenting these efforts are also the latest policy developments announced in this year’s Union Budget on battery swapping and charging infrastructure. These developments are likely to boost consumer confidence and enable a way to address the challenges around adoption.
Commenting on the launch of the report, Rajeev Singh, Partner and Automotive Leader, Deloitte India said, “Riding on the crest of evolving customer needs and disruptive innovations, the Indian automotive industry is going to witness a new era of growth. Our latest study delves deep into the changing consumer perceptions indicating a significant increase in the number of consumers who are evaluating alternate power train options and this is likely to drive growth of EVs (especially two and three wheelers) in the country.
Additionally, we have also witnessed the growth of a latent need for subscription-based models to cater to the ever-evolving needs of millennials and GenZs with its flexible ownership ability.”
Subscription of services provided by various auto brands helps Indian consumers attain a variety of vehicle ownership option without actually buying it. Consumers have got used to rental services (chauffeur and self-driven) and are now looking for long-term solutions that are convenient and cost-effective.
The Indian government also recently revised the rules for the EV charging infrastructure and allowed the respective owners to charge their EVs using the existing electricity connections at homes or offices. This effort will give an additional push to Indians for adopting EVs in the near future.
Beyond being a sustainable solution to the consumers, EVs are also cost effective.
With the rising demand, many auto manufacturers and Original Equipment Manufacturers (OEMs) have started getting into strategic partnerships to drive adoption across the country. These positive developments have led to an array of investors already showing interest in capitalising on this opportunity.
Some of the other trends from the report:
- Indian consumers are willing to share personal data in exchange for maintenance updates
There’s a growing appetite for personalisation of products and services in India. Many consumers are willing to share more of their personal data in exchange for less congested (83 percent) and safer routes (83 percent), and vehicle health reporting/lower maintenance costs (84 percent). Since the pandemic, Indians have become more convenience driven, and prefer getting very targeted services and offers.
- Middle-aged consumers are interested in subscription services: Different brands, different models from same brand, and pre-owned vehicles
Indian consumers are looking at car ownership as a service and not an asset that comes with various liabilities, including additional maintenance costs and service hassles, besides tons of paperwork. As per the survey findings, 70 percent of the Indian respondents are interested in a subscription that allows access to different models from the same brand; 72 percent are interested in different brands of the vehicle; and 69 percent are interested in pre-owned vehicles.
- While there will be more emphasis on virtual vehicle sales, Indians still want an in-person experience
As per the survey, online sales of vehicles have picked up across geographies where India is leading the chart: 68 percent of people still want the look and feel of a vehicle before actually making the purchase.
The survey analysis shows online vehicle sales amongst Indian consumers would be majorly due to convenience (32 percent) followed by ease of use (27 percent) and speed (23 percent).
About the study
From September to October 2021, Deloitte surveyed more than 26,000 consumers in 25 countries to explore the opinions related to a variety of critical issues that impact the automotive sector, including the development of advanced technologies.
The annual study in its 13th year now, aims to answer important questions that can help companies prioritise and better position their business strategies and investments. It brings to the forefront variety of critical issues impacting the automotive sector, including the development of advanced technologies
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.