40% consumers in India want to pay less for electric vehicle than petrol or diesel car: Study

Almost 40 per cent of the car users in India want to pay less for an electric vehicle than they pay for a conventional petrol or diesel car, says a study done by business consulting firm Frost and Sullivan. Another 30 per cent are willing to pay just as much as a conventional car, while only 15 per cent would be willing to pay more, the study stated. At present, an electric version of a car is priced at least 25 per cent more than that of a similar petrol or diesel version.  

Electric vehicles have captured the imagination of the global automobile industry. In India, the government has been pushing for a complete electrification as early as 2030. The findings of this study, however, indicate the transition will be far from easy. With the cost of ownership of a vehicle continuing to be the most important factor in the success of a vehicle, the reluctance to pay more for a new technology like electric cars would not be music to the ears of those in the industry.

One thing that should encourage the industry is that Indian consumers do not have very high expectation as far as the minimum range of an electric car is concerned. More than 60 per cent customers want a minimum 150 km range from an EV. This is only slightly more than the range offered by the cars currently available in the market, including Mahindra e-Verito or Tatae-Tigor. The range expectation, however, is higher when it comes to customers from the Tier 2 cities, whose average driving distances are longer than the Tier 1 customers.

The study also points towards the relatively low awareness about electric cars in India and the possible effects of the unawareness. The awareness level was the lowest among respondents from the North and Eastern regions of the country and relatively higher in the West and South. Overall, consumers in India are only somewhat aware about electric vehicles.

In contrast, almost 75 per cent of the customers are aware of mild hybrid technologies, indicating that India should perhaps not shut itself to hybrids as it starts its journey towards full electrification.