Buying Behavior Of Consumers Towards EVs

Electric vehicles (EVs) are becoming immensely popular. Undoubtedly, the EVs are going to introduce critical changes in
the Indian automobile industry with their massive adoption resulting in more futuristic business models.  The global
audience is becoming more receptive towards electric vehicles as the world is taking notice of the benefits that these
vehicles bring along with them. EVs are recording impressive sales across the globe, and though the US, China and
whole of Europe make up for a large chunk of the sales, industry leaders and experts believe that India is emerging as a
promising player with a lucrative market.  

A deep understanding of consumer needs is quintessential for future mobility developments. A number of factors drive
buyer’s purchase decisions such as technological knowledge, features, preferred vehicle range, charging convenience,
negligible/zero emissions, tax credits, performance, and other incentives. A study of these will provide an explanation for
what motivates buyers to purchase an electric vehicle. EVs operate at a much lower cost fundamentally. And the trends
for the last few years show that there has been a steady rise in the interest among Indian masses to opt for electric cars
and electric two-wheelers. 

Reasons Why EVs Are Becoming Popular: At the outset, electric mobility is widely considered to be an effective way to
improve air quality and fulfil environment necessities. EVs ultimately benefit their primary users. Electric vehicles are 97%
cleaner and environment-friendly as compared to gasoline powered vehicles. They do not produce any hazardous
emissions in the air. When the particulate matter, known as carcinogens, is released into the air by gasoline powered
vehicles, it can dangerously aggravate the health conditions of asthmatic patients and cause respiratory problems in
others. Thus, EVs eliminate the possibility of such harmful emissions. 

In a world where protection of the environment and energy conservation are ever-growing concerns across nations, the
development of EVs has become inevitable for fulfilling these needs. In regard to the environment, the EVs provide urban
means of transportation that is emission-free. When it comes to energy, electric vehicles are a secure, balanced and
comprehensive energy option that is efficient as well as environment-friendly as they use different kinds of renewable
energies. Moreover, electric vehicles are expected to have a positive impact on environment, energy, transportation, hi-
tech promotion, creation of new industries and economic development. 

India, being the world’s third-largest energy consumer after the US and China, is actively working towards building an
economy that is progressive, green and sustainable. As part of its mission and commitments under the global climate
change accord, India hopes to achieve a renewable energy capacity of 175 gig watt (GW) by the year 2022. And in this
about 100 GW of energy will be derived from solar. The EV industry is starting to uplift itself now and though it constitutes
a small percentage of the entire vehicle market, it’s still starting to reach a point where it will have a profound impact
globally. 

Buyer Behaviour Towards EVs in India : For many, buying a vehicle tends to be a time-consuming process as they take
into consideration several internal and external factors which influence their decision. Especially in India, the decision-
making process is particularly a complicated and arduous task as the consumers are faced with an influx of information.
Market research has shown that when buying an automobile, female buyers give primary importance to features like
safety, efficiency, and affordability, whereas male buyers look for performance, aesthetics (interiors and style), and
specifications. Also, generally, male buyers are more keenly interested in electric vehicles.  
When buyers think of switching to electric vehicles, the viability of this sector is heavily affected by factors like incentives
on discarding used vehicles, favorable and effective government policies, and reduction of GST . Buyers also believe that
EV manufacturers need to adopt a more proactive marketing approach. Consumers are further interested to know how
much would they be saving on their fuel expenses if they switch to EVs. So, if manufacturers can present an estimate of
long-term fuel savings, that can really win the buyers’ confidence and influence their purchase decisions in favor of the
electric. 

The modern generation is driven by sustainability, innovation, and environmental conservation. Electric vehicles tick all
the boxes. Most electric vehicle buyers are receptive towards green technology and have been the early adopters of the
same, taking pride in becoming an environmental ambassador. Thus, on average, the easy availability indigenously of
vehicles, spare parts, and batteries also impacts the consumer mindset to a large extent. On an average, studies have
shown, consumers are quite enthusiastic about making the switch to vehicles that would have zero emissions. 

Reports suggest that most consumers in India are considering buying an electric vehicle by the year 2022, but many also
believe that it would not be until 2025 that the maximum number of new cars which will be purchased then would be
electric. The results have shown that for a consumer in India, generally, a charging time of 35 minutes, a range of 401 km
from a single-time charge and a price point of Rs 23 lakhs or USD 31,000 are factors that will eventually lead up to
mainstream adoption of EVs. However, two-thirds (about 67 percent) of consumers in India have adopted a ‘ wait-and-
watch’ stance. Studies conducted show that misconceptions about maintenance costs could be possible factors
preventing consumers from switching to electric vehicles in a full-fledged manner with about 83 percent of Indians saying
that these misleading costs were keeping them from purchasing a full-electric car. 

Even though Indian consumers are looking out for a lower price point compared to consumers in other countries, they are
nevertheless open to accepting a slightly longer charge time and a range that is slightly shorter. Such market-specific
nuances provide in-depth insights into the consumer mindset. Leveraging consumer-willingness to accelerate the
‘EVolution’ is bound to provide a road map for the growth of this industry and help propel the transition so that a greater
number of electric vehicles are adopted in India. Overall, the trends paint a positive picture as the majority of consumers
look forward to making the switch to electric with Indian buyers wanting to do so earlier than those in markets abroad. 

Consumers’ Behavior Post Covid-19: Consumer behavior is anticipated to undergo massive changes in the post-Covid
world. As a precautionary measure, people will avoid the use of public modes of transport, including buses, cabs, metro,
and auto. Private cars, biking, and walking have gained preference instead. The prevailing scenario indicates a promising
future for the EV industry, especially for the daily city commuters who have to travel shorter distances within the city itself
such as homemakers, students, and service industries’ workforce. As it’s a safer and more economical mode, the
segment is poised to gain significant traction in the foreseeable future. People will be prioritizing their health a lot more
now and will avoid crowded transportation means. Even now, people are depending on electric mobility for fulfilling
emergency requirements of food supplies, clothes, and medicines. 
Summing It Up : Consumer sentiments and the market, overall, are quite favorable towards electric vehicles. We are
presently at a crucial crossroads where an interplay of electric vehicles and decisions of key players will shape the future
of transportation either for the better or worse. The period post-pandemic is expected to serve as the perfect chance for
various EV brands to successfully connect with their customers, who are fully ready to make the environment-friendly
switch. 

- What Kind of CB attributes do you notice towards the consumers those who prefer the EVs, Justify
(Write in 100 Words)
- Currently, EVs comprise less than 2% of the automotive market, in spite of such eco friendly
Technology, why such a lag? What may be the reasons behind consumers not preferring the EVs,
justify?
(Write in (150 Words)
Scenario Development / Conceptual Model