The Indian automotive landscape is undergoing a transformative shift with several consumers opening up to the idea of switching towards more clean fuel. In fact, a recent report on the Indian Automotive Industry Trends and Outlook Report by GfK, a leading German market research company, finds that nearly 40 percent of urban Indian consumers express a strong desire to purchase alternative fuel cars.
It found that while only 9 percent of surveyed urban Indian consumers currently own alternative fuel vehicles, 40 percent see themselves purchasing an alternative fuel passenger vehicle in the near future, signalling a potential paradigm shift towards more sustainable transportation options. Electric vehicles emerge as the most coveted alternative engine. For more than 55 percent of respondents, the advanced technology of electric vehicles stands out as the primary motivator for those considering the fuel type for their next purchase.
Ravi Arya, APAC Lead for Brand and Advertising at GfK, an NIQ company, said, “The report underscores the evolving expectations of surveyed urban Indian consumers, envisioning not only safer and more enjoyable driving experiences with in-vehicle technology but also expressing a burgeoning curiosity towards hybrid vehicles. This shift is propelled by factors such as advanced technology, fuel savings, environmental friendliness, low running costs (inclusive of tax benefits), extended driving range, established technology, and the accessibility of fast charger stations in local areas. These factors collectively contribute to the escalating inclination of individuals towards the purchase of electric vehicles (EVs).”
Additionally, 29 percent of surveyed consumers expressed interest in plug-in hybrid electric vehicles (PHEVs), while 25 percent showed interest in fuel-cell electric vehicles (FCEVs).
Nevertheless, a significant 58 percent of respondents cited the lack of charging stations as a major concern, deterring them from choosing a fully electric car. Additionally, 53 percent were disinterested in EVs due to their perceived expense and extended charging times, with concerns about potential resale value also influencing purchasing decisions.
Concerns about the shorter driving range of EVs account for approximately 43 percent of consumer decisions to refrain from buying them. Although, consumers in India would consider full electric vehicles if they can drive around 335km when fully charged and expect 8 hours to fully charge the battery. Another crucial factor influencing 30 percent of prospective buyers is their apprehension about the durability, reliability, and overall quality of EVs. In addition to these concerns, the report highlights the tangible impact of the current economic climate on purchase decisions, with nearly 50 percent of surveyed urban Indian consumers indicating that prevailing economic conditions influence their considerations for a new car.
The findings are based on a study conducted by GfK’s interview with 900 online consumers planning to purchase a new car within the next 1-2 years.
