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Understanding Indian Consumers’ Priorities, Preferences and Willingness to Purchase Hybrid and Electric Vehicles, 2017

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 Features
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.


  • Executive Summary
    • Unaided Technology Awareness-Summary
    • Unaided Technology Awareness-Overall
    • EV-Concerns, Benefits, and Acceptable Range
    • FHEV-Concerns and Benefits
    • MHEV-Concerns and Benefits
    • Mission 2030-Customer Opinion: By City Type
    • India Vs. Delhi-A Comparison
  • Research Objectives and Methodology
    • Product Segmentation
    • Research Objectives
    • Research Methodology
    • Methodology and Sample Design
    • Key Questions this Study will Answer
  • Key Findings
    • Key Product Requirements-EVs and FHEVs
    • EVs
    • FHEVs
    • MHEVs
  • Unaided Awareness
    • Unaided Technology Awareness-Summary
    • Unaided Technology Awareness-Overall
    • Unaided Technology Awareness-Battery Electric Vehicles (BEVs)
    • Unaided Technology Awareness-FHEVs
    • Technology Awareness-MHEVs
    • Actual Model Awareness-Overall
  • EVs-Key Perceived Benefits and Concerns
    • EV-Concerns, Benefits, and Acceptable Range
    • EV-Key Perceived Benefits
    • EV-Key Perceived Benefits: City Type Wise
    • EV-Key Perceived Benefits: Age Wise
    • EV-Key Perceived Benefits: Segment Wise
    • EV-Key Perceived Concerns: Overall
    • EV-Key Perceived Concerns: City Type Wise
    • EV-Key Perceived Concerns: Segment Wise
    • EV-Addressing Concerns
    • EV-Addressing Concerns: City Type Wise
  • Addressing Concerns
    • EV-Acceptable Range: Overall
    • EV-Acceptable Range: City Type Wise
  • Need for Differentiation
    • EV-Need for Differentiation and Willingness to Pay
    • EV-Need for Differentiation: Overall
    • EV-Need for Differentiation: City Type Wise
  • Willingness to Pay
    • EV-Willingness to Pay: Overall
    • EV-Willingness to Pay: City Type Wise
    • EV-Willingness to Pay: Age Wise
    • EV-Willingness to Pay: Segment Wise
    • EV-Willingness to Pay More: Overall
    • EV-Willingness to Pay More: City Type Wise
    • EV-Willingness to Pay More: Segment Wise
    • EV-Willingness to Pay Less: Overall
    • EV-Willingness to Pay Less: Age Wise
    • EV-Reason for Willingness to Pay Less: Overall
    • EV-Reason for Willingness to Pay Less: City Type Wise
  • Expected Usage and Brand Preference
    • EV-Need for Differentiation and Willingness to Pay
    • EV-Expected Usage
    • EV-Preferred Brand
  • FHEV-Key Perceived Benefits and Concerns
    • FHEV-Concerns and Benefits
    • FHEV-Key Perceived Benefits
    • FHEV-Key Perceived Benefits: City Type Wise
    • FHEV-Key Perceived Benefits: Age Wise
    • FHEV-Key Perceived Benefits: Segment Wise
    • FHEV-Key Perceived Concerns: Overall
    • FHEV-Key Perceived Concerns: City Type Wise
  • Addressing Concerns
    • FHEV-Addressing Concerns
    • FHEV-Addressing Concerns: City Type wise
  • Need for Differentiation
    • FHEV-Need for Differentiation and Willingness to Pay
    • FHEV-Need for Differentiation: Overall
    • FHEV-Need for Differentiation: City Type Wise
  • Willingness to Pay
    • FHEV-Willingness to Pay: Overall
    • FHEV-Willingness to Pay: City Type Wise
    • FHEV-Willingness to Pay: Age Wise
    • FHEV-Willingness to Pay: Segment Wise
    • FHEV-Willingness to Pay More: Overall
    • FHEV-Willingness to Pay More: City Type Wise
    • FHEV-Willingness to Pay Less: Overall
    • FHEV-Reason for Willingness to Pay Less: Overall
    • FHEV-Reason for Willingness to Pay Less: City Type Wise
  • Expected Usage and Brand Preference
    • FHEV-Usage and Brand Preference
    • FHEV-Expected Usage
    • FHEV-Preferred Brand
  • MHEV-Key Perceived Benefits and Concerns
    • MHEV-Concerns and Benefits
    • MHEV-Key Perceived Benefits
    • MHEV-Key Perceived Benefits: City Type Wise
    • MHEV-Key Perceived Concerns: Overall
    • MHEV-Key Perceived Concerns: City Type Wise
  • Addressing Concerns
    • MHEV-Addressing Concerns
    • MHEV-Addressing Concerns: City Type Wise
  • Need for Differentiation
    • EV-Need for Differentiation and Willingness to Pay
    • MHEV-Need for Differentiation: Overall
  • Willingness to Pay
    • MHEV-Willingness to Pay: Overall
    • MHEV-Willingness to Pay: City Type Wise
    • MHEV-Willingness to Pay: Age Wise
    • MHEV-Willingness to Pay: Segment Wise
    • MHEV-Willingness to Pay More: Overall
    • MHEV-Willingness to Pay More: City Type Wise
    • MHEV-Willingness to Pay More: Age Wise
    • MHEV-Willingness to Pay Less: Overall
    • MHEV-Willingness to Pay Less: City Type Wise
    • MHEV-Willingness to Pay Less: Age Wise
    • MHEV-Reason for Willingness to Pay Less: Overall
  • Final Purchase Intention
    • Final Purchase Intention & EV Mission 2030
    • Final Purchase Intention-Overall
    • Final Purchase Intention-EV: City Type Wise
    • Final Purchase Intention-EV: Segment Wise
    • Final Purchase Intention-FHEV: City Type Wise
    • Final Purchase Intention-FHEV: Age Wise
    • Final Purchase Intention-MHEV: City Type Wise
  • Preferred Body Type
    • Preferred Body Type-Overall
    • Preferred Body Type-FHEV
    • Preferred Body Type-MHEV
  • Mission 2030-Customer Opinion
    • Mission 2030-Customer Opinion: Age Wise
    • Mission 2030-Customer Opinion: City Type Wise
    • India Vs. Delhi-A Comparison
  • Growth Opportunities and Companies to Action
    • Growth Opportunity-Convert the interest in xEVs to Sale
    • Strategic Imperatives for Consumer Interest in xEVs
  • Conclusions
    • Key Conclusions
  • Appendix
    • Market Engineering Methodology

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