Understanding the EV market

scenario in India through the lens

of Industry experts
September 2023
INTAGE INDIA Private Limited

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 Contents Page
Research Design 3

Understanding customer expectations from EVs 6

Table of Contents BEV Segment in India: Current scenario and Future trends 14

BEV Manufacturers (OEMs): Challenges in manufacturing BEVs &

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Support from the government

BEV charging infrastructure & preferences in India 19

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 Research design

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 Introduction & Background

India's EV market has been experiencing significant growth and has the
potential to become one of the largest EV markets globally. Lot of changes can
be observed in automotive sector due to introduction of EV. It's important to note
Context that the EV market is dynamic & subject to various factors, including
Setting government policies, technological advancements, and consumer
preferences. For staying updated its required to understand the insights from
industry experts of this field and have an overall understanding of EV
ecosystem & market scenario in India.

To provide the research findings with the below objectives through the IDIs
with the Industry experts from both 2W & 4W segments for Electric vehicles
in India.
Objectives I. EVs: Drivers & Barriers
II. Impact of Government Initiatives in ecosystem.
III. Expected growth of market 2W/4W
IV. Opportunities & Challenges for OEMs

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 Design & the Target group for the research

Bangalore Virtual In-Depth 60 min/ IDI

Delhi/ NCR interview
Sample split basis the presence Few of the profiles of the TG Virtual In-depth Interviews
of the target OEMs in both 2W & from Automotive sector: (IDIs) were conducted with EV
4W segments. • Target department is experts from both 2W & 4W
Marketing, R&D, Sales, segments.
Consumer Insight.
• Designation is Senior
manager level or higher.

EV 2-Wheeler OEMs: 3 experts

6 interview EV 4-Wheelers OEMs: 3 experts

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 Understanding customer
expectations from EVs

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 Electric Vehicles scenario globally & in India

Electric Vehicle is a new buzz word globally. It is widely noticed

that preference of people is shifting at a much faster pace towards
Electric Vehicles across the globe. China leads the Electric Vehicle
market and has almost 70% of global market sales followed by
Europe and the USA while rest of the world holds a small portion
of Electric Vehicle sales. India is also inching towards the same
trend, the consumer base for electric vehicles (EVs) in India is
evolving and expanding rapidly with a long way to go compared
to the global markets. Over the past few years, there has been a
growing interest in EVs among Indian consumers.
In the developed countries, most of the EVs are cars whereas, 2W
and 3W have the majority share among EVs in India.
Few reason majorly contributing to this growing interest in EVs
are:

Rising fuel prices

Technology Advancement (Source: Electrify America)

Environmental concerns

Government initiatives

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 Awareness about EVs & its types among consumers in India

Being a niche category, there is a general awareness about EV but lacks an in depth understanding about
the types of EV present. EV segment is still fascinating for a lot of people at an overall level. Among those
who are aware, few of the perceived thoughts and benefits about EV are:

1. New trending TECHNOLOGY in Automotive.

2. COST EFFICIENT due to low running cost.
3. It saves ENVIRONMENT.

There is a prevailing perception that EV is considered as a saving option for commute and not associated
with performance. General public lack understanding about EV and a lot of apprehensions and concern
around affordability, range, and battery life exist in the minds of consumers. Consumers need to be
educated about the different types of electric vehicles, their features, range, safety aspects mainly related to
battery life to boost the acceptability of EVs in India.

In 2-wheeler space , people are aware and excited about EV

mainly due to its low running cost and negligible difference
in the price parity with respect to IC engine vehicles. The EV
2-W is mostly used to cover shorter commute distance.
However, the awareness about types of EVs is relatively
2-Wheeler LOW.

Among the 4 wheelers segment, the awareness about the

type of EV is considerably MODERATE due to the presence
of Hybrid and other type of models with different powertrain
being available in India & globally.

4-Wheeler 8
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 Key essential consideration factor for BEV purchase
What are CONSUMERS considering? Vs What should consumers consider as per the INDUSTRY EXPERTS?

Consumers Industry Experts

“brand matters as it enhances

trust factor and resale value.
“The companies should Brand reputation is an
provide more battery important factor as it is
warranty to its customer associated with brand
& need free Replacement reliability, product reliability
of Brake pads” and durability in customer’s
mind”

Technology Upliftment – Many young consumers are considering BEVs Brand: The reputation of the Brand can be an important factor for some BEV
because of its advancement in Technology with features like connectivity, buyers.
vehicle safety & other convenience aspects.
Total cost of Ownership: BEVs offer long-term cost savings due to lower
Driving range: Customer considers Driving range as one of the key factors fuel and maintenance costs, these factors are considered by BEV purchasers.
while purchasing BEV.
Power & Health of the Battery: The lifespan and durability of the battery
Battery health: The lifespan and durability of the battery are important would be the important factors for BEV buyers.
factors for BEV buyers.
Charging compatibility: The availability and accessibility of charging
Government incentives through subsidy: Government policies like the stations can greatly impact a buyer's decision to purchase a BEV, which makes
FAME II scheme, which offers financial incentives, are making BEVs more it crucial to focus on the charging compatibility aspect.
attractive to the users.
Warranty: Though battery pack are the most expensive components of a BEV,
Cost savings: Cost savings from BEV due to the rise in fuel prices is also it's important for buyers to be aware of the warranty offered by manufacturers.
one of the consideration factors to opt for BEVs.
After sale services: After-sales service and support are crucial factors to
consider when purchasing an electric vehicle as it is relatively a new technology.
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 BEV Acceptability: Drivers Vs Barriers

BEV: Drivers
ECONOMIC BENEFITS: It includes subsidy provided by government. Tax rebate, Low running cost
& Maintenance cost are some of the perceived benefits.

ENVIRONMENT & SOCIAL BENEFITS: No emission of greenhouses gasses, No noise

pollution, New technologies give more control over our daily life. Enhanced social status due to its
price.

PSYCHOLOGICAL BENEFITS: Considered as Self pride- as it is about embracing & adapting a

new technology with higher price, it gives a sense of pride among family & friends.

BEV: Barriers
HIGHER PRICE: Huge initial cost is perceived to be a pain point. Both 2W & 4W are sold at
20% and 50% premium respectively compared to IC Engines.

LACK OF CHARGING & SWAPPING INFRASTRUCTURE: With roughly 6 lakh EVs running
on road the charging station in India are only up to 2000. This is perceived as a major concern.

RANGE ANXIETY & TESTING MEASURES: It is perceived that BEVs cannot be used for long
ride due to limited range per single charge. There are concerns over proper measures or regulatory
framework for testing battery before installation.
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 Suitability factor of EVs in Indian market: Awareness → Acceptability
Awareness
“Consumers are generally aware of
In India, for EV in 2-Wheeler segment, the awareness is limited to Battery only BEVs and not the other types“
Electric Vehicle (BEVs)

Acceptability “EV is used as an option for

commuting 50 km in and around the
BEVs are well accepted but people are concerned about the range and cost of
city“
the EV 2 Wheelers.

“There is a huge gap between the customer

Awareness awareness about EV and their purchase
Among 4-Wheeler segment, consumers have awareness about Battery Electric journey. EV is a Trendy term for customers
Vehicle (BEVs) and HEV (Hybrid Electric vehicle) as of now. BEV is used Globally but now
there is a shift to HEV”

Acceptability
“In hybrid the user need not worry about
In 4-Wheeler segment, people are accepting EV but due to range issue and lack charging the vehicle while experiencing a
of EV charging Infrastructure, Hybrid is still considered as the suitable option better range or mileage”
for today.

It is believed that BEV is the future and lot of work has already started on its research &
development. The dominance of BEV can be seen soon in below categories.

Electric Cars Electric 2-W Electric Commercial

Electric 3-W Electric Bus 11
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Vehicles
 Why should the consumers prefer BEVs over ICE vehicles?

Vs

Electric Vehicles ICE Vehicles

Energy Efficiency required Low (Battery) High (Fuel)

Emission No tailpipe emissions Emits greenhouse gases
Running Cost Low High
Noise Pollution No Yes
Maintenance Cost Low High
Motor/Engine Efficiency 80% 30%

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 Most Desirable features in BEV Segment
Connected Features: EV can be easily operated from Phone, Alexa and
other electrical gadgets by enabling the push notification on battery
discharge, Geo tagging and other technologically advance features.

“Connected features on a smartphone or similar devices can offer entertainment and delight to individual
users. However, these features are particularly advantageous for commercial users, especially those
operating EVs with connectivity and telematics capabilities. Such users can utilize these features to
schedule trips efficiently, optimize routes, maintain service logs, and manage fuel data records, among
other benefits.”

SOTA (Software over the Air): OEMs should use SOTA, to understand
analytics of the vehicle usage, performance & condition.

AI, Machine Learning & Automated after sales: The integration of

AI, Machine Learning, and automation in after-sales services for electric
vehicles is enhancing convenience, efficiency, and vehicle longevity. By
harnessing these technologies, the EV industry is moving toward a more
sustainable and customer-centric future.

Vehicle-to-Vehicle (V2V) communication: V2V communication

enables vehicles to exchange information with each other using wireless
communication technology. This information includes data about the
vehicle's speed, location, and direction, road and traffic conditions ahead.

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 BEV Segment in India:
Current scenario and Future trends

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 Electric vehicles in India: Current scenario Vs Future trend

• The demand for battery electric vehicles (BEVs) is likely to grow significantly in the coming years, particularly in the
three-wheeler and two-wheeler segments. Rising fuel costs and a growing awareness of the environmental impact of
gasoline vehicles are driving this trend.
• As for the production capacity , BEV Manufacturers continues to increase the same, as it is likely that the sales will
also continue to grow. In fact, it is believed that at least 30% of the current production capacity of EV manufacturers in
India will be utilized soon.
• Overall, the BEV market in India is poised for significant growth, and manufacturers that can provide high-quality,
affordable, and technologically advanced EVs are likely to see strong demand from both commercial and
consumer markets.

Trend forecast of market share for BEVs in 2030

100%

50% Other
50 45
20 BEV
0% 10 4 15
2022 2030 2022 2030 2022 2030

2W 3W 4W
Key reasons for Upward

Rising fuel prices

Range for Daily Low Running Cost Low Running Cost
Commute

Government Subsidy Environmental

Government Subsidy
concerns
trend

Battery Guarantee & High usage & Low Technological appeal

Warranty Maintenance Cost 15
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 BEV Manufacturers (OEMs):
Challenges in manufacturing EVs & Support from the government

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 Key challenges for the OEMs manufacturing BEVs in India

• Many markets around the world, including India, have implemented stricter
emission standards and regulations to reduce greenhouse gas emissions and
Regulatory
combat climate change. Failure to meet these standards can result in
Framework
significant financial penalties for OEMs. As a result, OEMs are under pressure to
introduce new and more efficient vehicles to the market quickly.
• There is no safety guidelines and regulations for electric vehicle batteries.

• BEV business risk is high as consumers have certain barrier for BEV adoption
Customers’ due to its high initial acquisition cost, lack of charging infrastructure and
Perception & battery safety concerns, making the customers slightly reluctant to embrace
Adaptability this new technology.
• Therefore, the demand for BEV persists but the conversion rate to purchase
still stands very low.

EV Charging • Lack of charging stations is a concern, mainly for the 4W segment. It becomes
Infrastructure important for the customers to better plan their travel routes as per the
availability of the charging points in advance.

• There is a low purchase conversion of BEV’s among customers even though

EV Business
the consideration is up to 50% to 60%.
case &
• It’s been one challenge for OEMs to satisfy the technological needs of
Profitability consumer when it comes to BEVs with the higher range on full charge
expectations being one of them.

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 Support from Government to boost the BEV adoption in India

The government is promoting the adoption of BEVs through various incentives and policies, which will further boost
the demand for electric vehicles. The government is spreading awareness to increase the penetration of BEVs. There
is direct support to OEMs from government on the manufacturing of BEV’s by providing some rebate on the import tax
and with the incentives to encourage and support the testing and manufacturing of BEVs.

Direct & Indirect Support from the government to the OEM manufacturing BEVs

• FAME India Scheme (Phase II): The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India scheme
aims to promote the adoption of electric vehicles by providing incentives to manufacturers and buyers.
➢ Incentives for BEV Manufacturers: The Indian government was offering various incentives for manufacturers of electric
vehicles and their components. These incentives include financial assistance for setting up manufacturing facilities, research
and development activities, and the creation of charging infrastructure.
➢ Reduced GST: The Goods and Services Tax (GST) on BEVs was reduced to 5% from the earlier 12% to make BEVs more
affordable for consumers and to incentivize their adoption.
➢ Customs Duty Exemptions: The government is considering to provide customs duty exemptions for certain BEV components
and parts to encourage local manufacturing and reduce costs.
• Research and Development Support: The government is promoting research and development activities related to BEVs through
various grants, subsidies, and funding programs aimed at encouraging innovation and improving the technology associated with
BEVs.
• Infrastructure Development: The government is working on improving charging infrastructure across the country by extending
support to OEMs and other stakeholders involved in setting up charging stations.
• Electric Mobility Vision: India had set ambitious targets for the adoption of electric vehicles, aiming for a significant portion of the
vehicle fleet to be electric by a certain year. This vision was expected to drive OEMs to focus on BEV manufacturing.

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 BEV Charging Infrastructure & Preferences

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 BEV Charging Infrastructure in India

In India, as on today, the charging infrastructure is perceived to be not

sufficient, however the government is taking a lot of initiatives to promote this so
that required charging infrastructure can be built by collaborating and supporting all
the stakeholders in setting up the charging stations through a few of the below
mention initiatives.

1. National Electric Mobility Program (NEMP): This is the initiative to set up

charging infrastructure, standardize charging protocols, and promote the
use of renewable energy for charging stations.

2. Green Energy Corridors: These corridors aim to integrate renewable energy

generation with EV charging to promote clean and sustainable mobility.

3. Incentives for Charging Infrastructure Providers: The government offers

various incentives such as tax benefits, subsidies, and low-cost loans to
facilitate the establishment of charging stations.

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 Types of Chargers in 2Ws & 4Ws in India

Universal charging slot is perceived to be a need to build good ecosystem for EVs, it is not practically possible for each EV brand to build its
own ecosystem. EV user have multiple options but majority of 4-Wheeler owners are dependent on Home base fixed chargers while
majority of 2-Wheeler owners are dependent on portable chargers.

Public chargers are mostly fast chargers and occasionally used by 4-wheeler owners ( Private Car), but majorly used by fleet owner. Among
the 2W segment, there are chargers available like Charzers, Ather, Fortum, Zeon, etc. however, the usage of outside home charging in 2W is
very limited due to the limited usage as the 2-W are more often charged at home.

2 Wheelers
If case of 2-Wheelers, as of now all brand has its own charger type and the standardization norm is not prevalent. In this case using
universal charger is like a far-fetched dream as it is not just the connector type, but the wattage and capability of charging system is also
different. To standardize this, the government needs to take initiative and come up with some specified norm which every company is bound to
follow. Ather is an exception to this as its charger offers compatibility with any 2W and 4W BEVs.

4 Wheelers
In case of 4-wheeler brands, mostly the usage is from some listed connector, most of the brands are supporting type 2 charger and some
brands have designed their sockets in such a way that they can charge from multiple type of connectors.

AC Chargers (Slow Charger/Home DC Chargers (Fast Charger)

charging)

Type 1/J1772 Type2/Mennekes GB/T Level CHAdeMO CCS1 CCS2

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 BEV Battery types prevalent in 2 Wheelers

Merits Demerits
➢ Can be charged at home which is very ➢ Need power points for charging in the
cheap and convenient. parking space. “Most convenient option for
consumers, less chances of
In-built or ➢ Less possibility of damage of battery as ➢ Issue in case of flats/apartments for
damage to the pins of the battery
fixed its fixed properly, no chance of wear & those who don’t have fixed parking as it is fixed and need not be
battery tear. location. removed, no wear and tear”
➢ Linear power delivery & consistency is ➢ Need 4-5 hours for charging. (Longer
higher. duration)
➢ Can park the vehicle anywhere and take “With detachable battery no one
➢ Battery weight is heavy to carry
the battery at the convenient place for likes to carry the battery of 10 or
➢ Possibility of damage while detaching
charging with 3-pin socket. 12 kg in their hands and go to a
and charging. High chances of wear &
➢ This is a good option for those who live charging point, put it in charge,
Detachable tear. then take a 10 or 12 kg battery
at a places where electricity can’t be
Battery made available at parking lot or parking
➢ Need 4-5 hours for charging. (Longer again back and put it in their
duration) scooter and then drive”
place is not fixed.
➢ Chances of injury while
➢ Only battery can be carried back home
detaching/carrying the battery.
in case anyone runs out of charge.
““Swappable option is good when
➢ One has to take subscription and pay
one’s vehicle is in moving state, it
monthly/yearly subscription amount. is costly but good for people who
➢ Quick process, no waiting time. ➢ Need to pay every time you swap the are using it for commercial
Swappable
➢ Good for vehicle in commercial use. battery no matter how much charge is purpose and don’t have time to
battery ➢ No need to worry about battery range. left. charge it”
➢ Condition of the battery swapped may
not be as good as the owned one.

“Swappable option is perceived to be good however the major concern is about the condition and the health of the battery
received in exchange during the swap may not be reliable or consistent in offering good performance, will always have this
fear at the back of their minds during every swap”

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 Most OEM Preferred battery type for BEVs in 4Ws

As per the experts, Lithium-ion Battery have gained popularity over the
years, and this is the most preferred choice of batteries in EV for 4-
wheeler segment for the OEMs.
• Lithium-ion batteries are widely used in electric vehicles due to their high energy
density, which means they can store a lot of energy in a relatively small and
lightweight package. They also have a high power-to-weight ratio, making them
ideal for use in electric vehicles.

• Li-ion batteries are also known for their thermal stability, which means they can
perform well even at high temperatures. This is important in electric vehicles, where
the batteries can get hot during use or charging.

• Furthermore, Li-ion batteries have a good recycling factor, which means the materials
used in the battery can be reused or repurposed, reducing waste and
environmental impact.

• Overall, Li-ion batteries are a popular choice for electric vehicles due to their high
energy efficiency, power-to-weight ratio, thermal stability, and recyclability.
“Lithium batteries are preferred choice for the OEMS as the energy density is higher, more energy can be stored in a
small package, this eventually helps in offering great performance by keeping the overall weight lesser”
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 Way forward to drive the adaptability of BEVs in India

Infrastructure Development : Establishing a robust charging infrastructure

network across cities, highways, and rural areas is crucial.

Incentives and Policies : Governments should continue offering attractive

incentives such as tax breaks, subsidies, and reduced registration fees for BEVs.

Local Manufacturing and Supply Chain : Encouraging local production of BEV

components and batteries will reduce dependency on imports, lower costs, and
create job opportunities.

Affordable BEV Options : Manufacturers should focus on developing affordable BEV

models with good specifications, competitive pricing without compromising on the reliability.

Research and Innovation: Continued investment in research and development

will lead to technological advancements, improved battery efficiency, longer ranges,
and faster charging times.

Battery Recycling and Disposal : Developing a sustainable system for battery

recycling and disposal is crucial to minimize environmental impact.

Skills Development and Training: Training programs for technicians,

engineers, and service personnel are essential to meet the demands of the evolving
BEV technology landscape.
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 [Contact]

[email protected]

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