- Monday, February 24, 2025
By: Shubham Ghosh
WITH global sales of electric vehicles (EVs) expected to see a boom in the next one year, nearly 90 per cent of consumers in India are ready to pay a premium for buying an EV, a survey by consultancy firm EY has said.
The survey, EY Mobility Consumer Index (MCI), which covered more than 9,000 respondents from 13 nations (1,000 from India), also found that 40 per cent of the respondents were ready to pay a premium of up to 20 per cent. The survey ended in the second half of July.
“Among the car buyers in India, 3 in 10 respondents would prefer to buy an electric/hydrogen vehicle,” the survey said.
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A majority of the respondents surveyed in India consider a driving range of 100 to 200 miles (160-320 kilometres) from a fully charged EV, the EY survey added.
“Nearly 90 per cent of consumers in India are willing to pay a premium for buying an EV and over 40 per cent of respondents are ready to pay a premium of up to 20 per cent,” it said.
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Existing and future EV owners, who plan to buy a car, have a relatively higher preference for digital channels, compared to the existing and future ICE owners.
“The reducing gap in cost of ownership between electric and other technology platforms and the increasing segment of consumers vocal about environmental impact will drive a fundamental change in consumer buying behaviour for electric vehicles,” EY India partner and automotive sector Leader Vinay Raghunath said.
“Consumers are willing to pay extra for an added value of being environmentally responsible,” he added.
The top reason for buying an EV is environmental concern, the survey said, with a whopping 97 per cent saying that the Covid-19 pandemic has heightened awareness and concerns about environmental issues.
About 67 per cent of those looking to purchase an EV feel it is their responsibility to reduce their personal environmental impact and 69 per cent feel one way to achieve the goal is through buying an EV.
On charging the EVs, the survey saw that “nearly a third of the existing EV owners expect vehicle charging to take less than an hour compared to 45 per cent of the respondents who are planning to buy an EV”.
