Most Indians could consider buying Electric Vehicles by 2022: Report

Most consumers in India would consider buying an electric vehicle by 2022, but most of them also believe that it won't be until 2025 that the majority of new cars purchased are electric, according to a study by lubricants major Castrol.

The study found that on an average for consumers in India, a price point of Rs 23 lakh (or USD 31,000), a charge time of 35 minutes and a range of 401 kilometers from a single charge represent the 'tipping points' to achieve mainstream EV adoption.

Consumers in India are seeking a lower price point for EVs than consumers in other countries, with the global average tipping price point for EVs being at USD 36,000 (around Rs 27 lakh), it said.

Castrol took the response of over 1,000 consumers, fleet managers and industry specialists across India this year as part of a survey of nearly 10,000 people across eight of the world's most important EV markets.

As per the report, on an average consumers in India said they would consider purchasing an EV by 2022. This is two years earlier than the global average of 2024. However, two thirds (67 per cent) of consumers in India said they are adopting a "wait and see" approach. Over 40 per cent of fleet managers said they are waiting for competitors to make the switch before they do.

The study also found that misconceptions about maintenance costs could be stopping consumers from making the switch with 83 per cent of Indian consumers stating that these costs were preventing them from buying a fully electric car.

The time taken to charge battery was identified as the second most important challenge to the mainstream adoption of EVs and consumers in India said they require an average charge time of 35 minutes before they would consider purchasing an EV. This is several minutes longer than the global average of 31 minutes, the report said.

"Nearly three quarters (72 per cent) of those questioned believe EVs will only dominate on the roads once they can charge in a similar amount of time as it takes to refuel an internal combustion engine (ICE) vehicle," it added.

Stating that 'range anxiety' is real, the report said 64 per cent of Indian drivers agreed that it is a significant barrier to mainstream adoption of EVs.

"On an average, they expect a range of 401 km (from a single charge), approximately equivalent to the distance between Ahmedabad and Indore," it said.

Commenting on the findings, Castrol India Managing Director Sandeep Sangwan said,"Castrol's global research shows that consumers are positive about making the switch to electric, buyers in India are keen to do so earlier than those in other markets."

He further said,"Although consumers in India are seeking a lower price point than consumers in other countries, they are also willing to accept a slightly longer charge time and a slightly shorter range.

"These market-specific nuances are important. Accelerating the 'EVolution' provides a clear road map for the industry to help support the transition to accelerate mainstream adoption of EVs in India and around the world," Sangwan added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel