A recent survey suggests that only a small fraction, approximately 5%, of potential car buyers in India are considering purchasing an electric vehicle (EV) this year. The survey, which gathered responses from 40,000 individuals across 319 districts, also reveals that over half of current or prospective car owners would be interested in buying an electric car if it falls within the INR 8-10 lakh price range.
According to the survey conducted by LocalCircles, an online consumer pulse aggregator platform, while car sales in India exceeded 4 million units in 2023, registrations for electric four-wheelers numbered only 72,321.
LocalCircles estimates that if 5% of current or prospective car owners buy an electric car each and annual car sales maintain the 2023 numbers, it would signify a demand for 200,000 electric cars this year.
Among the 40,000 individuals surveyed, 42% live in tier-1 cities, 34% in tier-2 cities, and the remaining 24% are from tier-3, tier-4, and rural areas.
Challenges identified in the survey include a lack of electric car charging stations, limited knowledge about electric vehicles, insufficient model options within budget, and perceived higher costs compared to regular cars.
The “2023 Global Automotive Consumer Study” by Deloitte highlights that the demand for EVs primarily stems from the perception that fuel costs will be lower than internal combustion engine (ICE) cars, surpassing concerns about climate change.
Experts note that the appeal of electric cars extends beyond environmental factors, with consumers drawn to the quiet and comfortable driving experience due to minimal noise, vibrations, and harshness (NVH) levels.
Although operating costs for electric cars are lower than petrol versions, it would take an average daily commute of 46km or six years to offset the difference in purchase cost. Considering that the average commuter travels considerably less than 46km daily, the platform suggests that electric cars could offer significant cost savings for many drivers.
