According to a survey, only 5 percent of those intending to buy a four-wheeler in the country are likely to opt for an electric car this year.
This survey, which gathered responses from 40,000 individuals spanning 319 districts, also revealed that more than half of “existing or prospective car owners” would consider purchasing an electric car if it falls within the Rs 8-10 lakh price bracket.
While car sales in India surpassed 4 million units last year, registrations for electric four-wheelers stood at 72,321. These findings were reported by the online consumer pulse aggregator platform, LocalCircles.
If the 5 percent of existing/prospective car owners identified in the survey each purchase one car, and annual car sales maintain their 2023 numbers, it suggests a demand for 200,000 electric cars this year, as per LocalCircles.
Among the 40,000 survey respondents, 42 percent hailed from tier-1 cities, 34 percent from tier-2 cities, and the remaining 24 percent from tier-3, 4, and rural areas.
The survey highlighted various factors contributing to the relatively low interest in electric four-wheelers. Approximately 21 percent of respondents cited a lack of electric car charging stations in their area/city/town, while 12 percent expressed a lack of knowledge about these vehicles.
Additionally, 7 percent indicated a limited selection of models within their budget, while 21 percent perceived electric cars as more expensive compared to conventional ones.
The “2023 Global Automotive Consumer Study” by Deloitte, focusing on India’s findings, emphasized that consumer demand for electric vehicles often revolves around the perception of significantly lower fuel costs compared to internal combustion engine (ICE) cars, outweighing concerns about climate change.
Experts also noted that individuals are drawn to electric cars for the driving experience, including the absence of engine noise and minimal NVH (noise, vibrations, and harshness), which contribute to a quiet and comfortable cabin environment.
However, despite lower operating costs, it would take an average daily commute of 46km/day or six years to offset the price difference between an electric car and its petrol counterpart.
Given that the average commuter’s daily distance traveled is likely less than 46km or 16,790 km annually, electric cars may prove to be a viable and cost-effective option for many.
Sources of Information: Moneycontrol