Deloitte’s Global Automotive Consumer Study 2022 demonstrates a shift in mobility trends. More than a third of Indian consumers have expressed interest in electric 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% of 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 better driving experience.
Complimenting these efforts are also the latest policy developments announced in the 2022 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.”
He added, “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 the 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 options without actually buying them. 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 soon.
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
Many consumers are willing to share more of their data in exchange for less congested (83%) and safer routes (83%), and vehicle health reporting/lower maintenance costs (84%).
Middle-aged consumers are interested in subscription services
Vehicle buyers 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% of the Indian respondents are interested in a subscription that allows access to different models from the same brand, 72% are interested in different brands of the vehicle, and 69% are interested in pre-owned vehicles.
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% of people still want the look and feel of a vehicle before actually making the purchase.
The survey shows online vehicle sales amongst Indian consumers would be majorly due to convenience (32%) followed by ease of use (27%) and speed (23%).
