- Indian customers/consumers believe that the country will be infrastructurally ready for electric vehicles by 2030
- 66% of Indians said that electric vehicles will surpass petrol and diesel cars by 2030
CHENNAI: The future of electric vehicles in India is bright! A majority of Indian consumers – 57% – want to invest in electric vehicles (EVs) because of the practical benefits that EVs offer, while 56% want to purchase an EV because it is good for the environment. These are some of the prominent findings of the latest report launched by ACKO, India’s tech-first insurance company, and YouGov India.
The report surveyed 1018 respondents from New Consumer Classification System (NCCS) A & B households between the age groups of 28 to 40 who were either owners of an electric vehicle or were intending to buy one in the next twelve months.
Consumers believe the future is electric
While the majority of respondents – 60% – believe that India’s current public infrastructure is not equipped to support electric vehicles and feel the need for drastic improvement, there is a great deal of optimism for the future. The survey revealed that 89% of the respondents think India will be infrastructurally ready for EVs by 2030. In fact, 66% of respondents believe that EVs will surpass petrol and diesel cars and will be able to save money in the long run.
Why EV?
44% of intenders want to invest in an EV because they like the flexibility it offers. In addition, they believe that the availability of both hybrid or full electric options, will give them the best of both worlds.
47% of intenders believe that EVs offer a significant reduction in cost per mile compared to traditional options. 56% of intenders said that they want to be part of the responsible change in approach towards the environment and are interested in new technology.
What’s very interesting to note is that when it comes to EV owners, the need to do good for the environment trumps the practicalities that the intenders prefer. For example, 63% of EV owners stated that their choice to go for an EV is a part of their effort to reduce their carbon footprint.
Among the intenders, 62% are concerned about rising fuel prices, and 57% of them are interested in the latest technology. 51% said that using an EV has lower running costs compared to petrol and diesel cars. In fact, 48% of the owners said EVs are more cost-efficient per mile than traditional cars.
So what’s stopping people from investing in an EV?
The report has all the answers. The lack of availability of charging provisions is the biggest concern, followed by the safety issues which keep making headlines.
40% of intenders are concerned about the lack of charging facilities in and around residential spaces. They also expressed a need for more clarity regarding the time taken to charge a vehicle fully. In addition, 40% of intenders have also expressed worry about EV fire-catching incidents that have been all over the news.
Among other reasons of concern are the cost of battery replacement and how frequently it would be needed, as it is one of the primary costs of an EV. They are also concerned about the plausibility of long-distance travel in an EV.
Moreover, 41% of EV owners believe that EV takes a lot of time to charge, and 40% of owners are worried about the lack of charging provisions in residential complexes.
49% of EV car owners also believe that battery replacement cost forms a substantial part of EV ownership. One glaring concern is that 43% of EV owners believe that their vehicles’ driving experience and performance are not up to the mark compared to traditional vehicles.
“India is the world’s fourth largest car market. As Electric Vehicles race to become primary options for consumers, we wanted to understand their perspective on EVs. We worked with YouGov India and spoke to respondents who are either current owners or people who intend to buy EVs in the upcoming year, to better understand consumer opinions about EVs. As a result, we have been able to identify the key concerns and barriers towards adoption of electric vehicles in India, what EV owners would like manufacturers and intenders to know, the need for EV-specific insurance policies, and safety concerns around EVs,” said Animesh Das, Senior Director- Motor Underwriting, ACKO.
The report also highlights a lot of knowledge gaps that need to be filled related to EVs.
For example, worryingly enough, 63% of respondents don’t know that sand is the most convenient solution for putting out an EV fire. There are also knowledge gaps regarding the life of the battery. For example, 66% assume that battery life only lasts between 2 to 5 years. The good news is that 8 in 10 correctly recognize that charging behavior has a role in the EV’s battery life.
Another important aspect of owning an EV is the insurance, and with the growing popularity of EVs, the demand for customized insurance products has also gathered steam. 79% of respondents said they want a customized insurance solution for their EVs and 67% are ready to pay a premium for that. However, 53% said that there is a lack of trusted partners who provide EV specific insurance products.
When it comes to buying a policy, EV intenders and owners have opted for online insurance providers. 59% of intenders want to buy a policy from online players like ACKO.
A key takeaway from the report is that there is an urgent need to create awareness around EVs and different aspects related to EVs. It’s evident that Indians are excited about EVs and acknowledge them to be the future of mobility – but the lack of information in the market combined with the communication gaps is holding them back.
To read the full report: Download now
