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Old 20th January 2020, 19:20   #1
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Default 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

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New Delhi: Indian consumers’ interest for alternate powertrain technology continues to expand as fewer people want traditional ICE for their next vehicle.

Majority of Indian consumers comprising 34 per cent also believe that it is the responsibility of the OEMs to set up a network of publicly accessible EV charging stations, while 31 per cent believe that the government is responsible for this.

“It is important to look at the right transition from conventional ICE to sustainable fuel-efficient alternate powertrain technologies before we switch to EVs completely,” opined Shashank Srivastava, Executive Director, Maruti Suzuki India on the sidelines of the ETAuto EV Conclave last week.
The firm sampled around 35,000 respondents from 20 global markets. Around 3,000 of these were from India. These findings come at a time when the Indian auto industry has been under the worst ever industry slowdown.
  • According to one of the findings of Deloitte’s 2020 Global Automotive Consumer Study, consumers across geographies continue to move away from ICE vehicles. Globally, this preference for hybrid electric vehicles (HEV) is led by Japan at 47 per cent, followed by India.
  • 51 per cent Indian consumers prefer ICE vehicles (gas/diesel) for their next purchase while 25 per cent Indian consumers vouch for HEV and 15 per cent go for battery electric vehicles (BEV) with 9 per cent for other options like ethanol, CNG and fuel cells.
  • Also, the interest of the consumers is directly proportional to the rise in fossil fuel prices. Close to 81 per cent of the people very clearly articulated that they are much more likely to consider BEVs if gasoline prices reach more than Rs 152 per litre while only 31 per cent have an interest in battery EVs if fossil fuels rise upto Rs 95 per litre.
  • According to the report, 53 per cent of Indians agreed to pay upto Rs 1,00,000 more for EVs compared to a similar vehicle with ICE. Meanwhile, 10 per cent respondents expressed reservation regarding paying anything extra while 21 per cent said they would pay anything more between Rs 100,000 to Rs 300,000.
  • In addition, at least 30 per cent believe that the minimum driving range for BEVs should be at least 200 miles while 14 per cent are expecting the minimum driving range to be at least 50 miles.
  • The largest proportion of 35 per cent consumers are willing to wait for an average of 45 min for a BEV to be fully charged, while only 7 per cent are ready to wait for four hours or more.
Full report containing more statistics and graphs can be downloaded from here.

Sources: 1, 2

Last edited by wheelguy : 20th January 2020 at 19:26.
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Old 20th January 2020, 21:21   #2
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

It would have made more sense to mention the number in percentage terms, rather than absolute Rupee value.

For a sub-10 Lakh car, consumers are already paying 5% premium for CNG/LPG conversion from petrol. Consumers are already paying around 10% premium for a diesel engine.

Since EVs are more economical than even diesel cars, I think consumers might be willing to buy 300 km range EVs if they are sold at 15 to 20% premium over equivalent petrol models.
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Old 20th January 2020, 22:06   #3
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

It may be true that consumers are interested in Electric Vehicles but there has to be a broader view. .
The article mentions 53% Indians are ready to pay more however the survey had only 3000 respondents from India. Not sure how much value this sample set provides.
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Old 20th January 2020, 22:24   #4
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

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Originally Posted by SmartCat View Post
Since EVs are more economical than even diesel cars, I think consumers might be willing to buy 300 km range EVs if they are sold at 15 to 20% premium over equivalent petrol models.
All EVs have automatic transmission which can add another 10% price over ICE vehicles. Nexon EV will come close to ~15% premium over diesel automatic counterparts. With price increases of BSVI and no road tax for EVs, Nexon EV OTR price will be less than 10% of diesel automatics.
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Old 21st January 2020, 04:14   #5
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

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Originally Posted by thetank View Post
The article mentions 53% Indians are ready to pay more however the survey had only 3000 respondents from India. Not sure how much value this sample set provides.
Indeed very small sample size. Polls in forums such as ours are perhaps more reliable. However, I tend to agree with this survey because if we look at our other thread of monthly sales, 50% of sales would be from C1 and above segments that start from 10 lacs on road. Therefore, a 10% premium might be affordable in those segments.

PS: It is a clickbait title, ”53% Indians ready to pay 1 lac” could be misleading when our per Capita is 1,35,050

Last edited by Thermodynamics : 21st January 2020 at 04:22.
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Old 21st January 2020, 05:49   #6
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

If auto makers can make an equivalent EV for INR 1 lakh more, they'd already done it TBH.

This question doesn't even make sense as the additional 1 lakh spent can be recovered in in 20 months assuming an average monthly fuel expenses of INR 5000. Cost of electricity and maintenance of EVs is significantly lesser.

Last edited by landcruiser123 : 21st January 2020 at 05:50.
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Old 21st January 2020, 09:58   #7
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Default re: 53% Indians ready to pay up to Rs 1 lakh more for an EV: Deloitte

I found most of this survey to be quite stupid, and not fitting of something by Deloitte at all. Attaching the full PDF received from them, in case someone is interested.
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File Type: pdf Deloitte.pdf (943.9 KB, 161 views)
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