The Indian auto market has witnessed a significant emergence of electric vehicles (EVs) over the past year.
Many companies have been putting more focus on the battery-operated segment. While the growth is evident overall in the electric vehicle market, the two-wheeler segment has contributed more than the passenger cars.
According to research by consultancy agency Brain & Company, electric vehicles hold a five percent share of the total car sales in the Indian market between October 2022 and September 2023. It can reach more than 40 percent by 2030 if vehicle manufacturers continue to enrich their EV portfolios in the upcoming years, as reported by HT Auto.
The study further noted that electric two-wheelers accounted for nearly 90 percent of EV sales in India, while the numbers are quite low (only 9 percent) in the passenger segment. In a country like India, most of the customers are concerned about the price when it comes to acquiring a four-wheeler.
As per the current scenario, the EV models have a higher price tag than the ICE variants. Hence, fossil-driven cars seem more convenient for Indian people. The average cost of an electric bike is 15 percent higher than that of an ICE model having the same features. In the case of passenger vehicles, the price of EVs is almost twice that of petrol and diesel variants.
To gain the faith of the audience, auto OEMs in India can roll out subscription-based models instead of going for traditional purchased-based ownership. This step is expected to increase the popularity of EVs in the country as well as boost the adoption of such cars.
Electric vehicles may offer several benefits but they come with some challenges. Besides the price being high, customers also face trouble finding charging stations, which have yet to be made available in every part of India. These cars also take time to get recharged while the ICE models are always ready to drive.
If the Indian automakers start to launch more subscription-based EV models, they will likely be able to attract more customers as it doesn’t demand the entire cost of the car to offer ownership.
Tata Motors, a giant in the Indian EV market, has recently introduced a subscription-based model of the Nexon. Customers will need to pay a monthly amount of Rs 29,500 to acquire the vehicle and the package also includes free maintenance, periodic servicing, insurance coverage and roadside assistance. There is an option to choose the subscription tenure between 12 and 36 months.
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