In a significant shift in India’s car market, with nearly half of consumers expressing a preference for Hybrid Electric Vehicles (HEVs) over traditional gasoline-powered cars and even pure Electric Vehicles (EV), according to Deloitte’s 2024 Global Automotive Consumer Study. This trend, driven by environmental and economic factors, marks a turning point for the industry.
While HEVs gain traction, concerns regarding Electric Vehicles (EVs) persist. Despite their appeal for lower fuel costs and emissions, concerns about charging time, range, and infrastructure remain significant hurdles. Notably, 43% of Indian car buyers cite charging time as their biggest fear, and 42% worry about the lack of public charging stations.
According to the survey, Indian consumers seem less concerned about battery safety compared to their global counterparts. However, their range expectations are lower, with only 40% expecting over 400km of battery range compared to 67% in Germany.
Interestingly, unlike developed markets where brand loyalty thrives, India sees 80% of car owners open to exploring different brands. It presents challenges and opportunities for manufacturers seeking to capture this dynamic market.
Despite the EV slowdown attributed to affordability concerns, the traditional Internal Combustion Engine (ICE) vehicles (Petrol/Diesel Vehicles) are witnessing a resurgence in some markets. Price remains the top factor influencing brand choice in developed markets, while performance and product quality take precedence in others. India prioritizes product quality, with 37% preferring locally-made vehicles.
Another interesting factor is that Indians show a higher willingness to pay for connected car features compared to developed nations. This indicates a potential untapped market for technology-driven solutions.
The study, surveying over 27,000 consumers across 26 countries, delves deeper into factors shaping the automotive landscape. Notably, cost reduction trumps environmental concerns as the primary motivator for choosing electrified vehicles. Additionally, consumers seem comfortable with longer charging times than previously assumed, exceeding 10 minutes. Finally, credit/debit card usage remains the preferred payment method for public EV charging.
The main difference between HEVs and EVs lies in their power source and how they’re refueled:
| Hybrid Electric Vehicle (HEV) | Electric Vehicle (EV) |
| Power source: Utilizes both an electric motor and a gasoline engine.
Fueling: Electricity: The electric motor is powered by a battery that gets charged through regenerative braking (capturing energy when slowing down) and sometimes by the gasoline engine itself. Gasoline: The gasoline engine kicks in when the battery runs low or for additional power needs. Benefits: *Improved fuel efficiency compared to traditional gasoline cars. * No need to plug in and recharge like an EV. * Less range anxiety due to the presence of a gasoline engine. Drawbacks: * Still relies on gasoline, contributing to emissions. * More complex engine system compared to traditional gasoline cars, leading to potentially higher maintenance costs. |
Power source: Solely relies on an electric motor powered by a battery.
Fueling: Requires plugging into a charging station to replenish the battery. Benefits: * Zero tailpipe emissions, environmentally friendly. * Potentially lower operating costs compared to gasoline or HEVs. * Smoother and quieter driving experience. Drawbacks: * Limited range compared to gasoline cars (although improving rapidly). * Recharging can take longer than filling up a gas tank, leading to range anxiety. * Requires access to charging infrastructure, which is still developing in some regions. |
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