The signs have been there since the beginning of the year, but the noise or if one can even say the hype of the electric vehicles managed to drown out reality. In January 2024, high-flying EV companies like Rivian and Lucid saw their shares tank 80-90 per cent in the US market. A couple of months later, the unthinkable happened, Tesla started offering discounts and other incentives like affordable finance options.
It is now official, EV sales are plummeting globally and the Indian market is no different. To make matters worse, a survey revealed that 51 per cent of EV owners in India want to fuel up and go back to internal combustion engine vehicles. This translates into every second early adopter EV owner who is now seriously contemplating opting for a diesel or a petrol-powered car. Based on reports by Park+ and McKinsey, we find out why EV owners are having second thoughts. Â
Charging anxiety is stalling EV adoption
According to a McKinsey survey, the global average for EV owners who want to switch back to petrol or diesel vehicles is around 29 per cent and 46 per cent in the US. We may think that we are shielded from all these numbers, but a report by Park+ shatters this myth about India witnessing a fast-growing EV sector and we are only talking about the four-wheeler segment.Â
The question arises, have EV owners got over range anxiety? This will surprise you, but that’s not why they are having doubts in their mind. The major hurdle continues to be charging anxiety. That’s not to say that electric charging infrastructure hasn’t increased. It certainly has, but the anxiety about whether the charging station is functioning or available adds another challenge. Most EV buyers charge their vehicles at home or their workplace, but the lack of freedom to juice up the battery anywhere and at any time is a serious pain point. According to the Park+ report, a whopping 88 per cent of EV owners believe that charging anxiety is one of the biggest concerns because the visibility of electric charging stations is unfortunately not crystal clear.
The Park+ survey also reveals that most EV owners aren’t concerned about range anxiety as the vehicles are used within the city at an average of 50 km.
Likelihood of buying second EV is low
If concerns over charging anxiety were alarming, the subsequent figures are even more striking. According to the Park+ report, 51 per cent of existing EV owners do not plan to buy another electric vehicle. It’s worth noting that the EV sector in India is still emerging, and the development of its secondhand market will some time. Additionally, 33 per cent of owners are dissatisfied with the resale value of their EVs, which is currently quite low due to the absence of standardized evaluations and tests.
According to a McKinsey survey, reluctance to purchase electric vehicles (EVs) is also growing in the US market, with the percentage of car buyers not interested in buying an EV rising from 41 per cent to 48 per cent year-over-year.
People’s EV champion
With an early mover advantage and constantly upgrading its EV range, Tata Motors is the leader in this class and remains the most popular choice. According to the Park+ report, 61 respondents gave the Nexon EV a thumbs up, followed by 19 per cent for the Punch EV.
Despite BYD’s limited presence in India, the world’s leading EV maker has faced criticism for its high pricing and insufficient availability of test cars. While the latter is certainly a valid concern, the premium quality, well-constructed, and state-of-the-art batteries and vehicles that BYD provides are fairly reasonably priced, considering they are assembled locally rather than manufactured.
