Understanding Indian Consumers’ Priorities, Preferences and Willingness to Purchase Hybrid and Electric Vehicles, 2017
Understanding consumer needs is quintessential for driving future mobility developments. This research focuses on consumer awareness and their willingness to pay for hybrid vehicles and electric vehicles (EVs). The respondents were questioned based on numerous factors such as technology awareness, preferred vehicle range, features, ease of charging, usage pattern, resale value, low noise and vibration, inexpensive to purchase, very low/ zero emissions, sporty performance, tax credits and other incentives to understand what motivates them to consider purchasing a hybrid and electric vehicle.
Key takeaways of the study include:
There is a considerable difference between customers’ understanding about a certain technology and their actual awareness. There is a need to create awareness of technologies to build understanding and interest.
Although reliability and safety are the most important factors for choosing a vehicle, car owners more often take into account the performance and personalization of the vehicle as they are paying a premium over a conventional vehicle.
Electric range is a higher priority compared to performance and the preferred range is between 100 km and 150 km (90% of customers wanted a minimum 100 km range from EVs).
Customers are welcome to the idea of battery leasing scheme (due to its lower initial cost) and free quick-charging points in all petrol stations. Electric range, fuel economy, easy availability of the charging station, usage pattern, low cost of ownership, good resale value, low noise and vibration, inexpensive to purchase, very low/ zero emissions, sporty performance, tax credits and other incentives, India consumer research, Indian consumer willingness to pay, hybrid and electric vehicle consumer research. Technology - reliability, fuel economy, range, easy availability of the fuel, good everyday performance, low cost of ownership, good resale value, low noise and vibration, inexpensive to purchase, very low/ zero emissions, sporty performance, tax credits and other incentives, electric vehicles. 65% of customers want EVs to look different. At the same time, they (40%) want the EVs to be priced below the price of a conventional vehicle. Industry challenges - Consumer perception on electric vehicle technology, range anxiety, and value addition offered by electric models have negatively impacted sales growth of EVs. Thus, OEMs are standardizing fast chargers for every EV model and exploring opportunities in vehicles with longer range and offering competitive pricing as compared to conventional vehicles. A minimum 100 km driving range for an EV will meet the range requirements of 90% of Indian consumers. About 75% of the customers are willing to pay higher for the benefits but are concerned about certain factors such as high maintenance cost.
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