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The traditional combustion engine is gradually becoming outdated as electric cars are gaining traction. However, despite the promising advancements in electric vehicle (EV) technology, India faces several barriers to widespread adoption.

According to Rediffusion think-tank Bharat Lab's report, the fear of running out of battery power before reaching a charging station remains a significant challenge hindering the widespread adoption of EVs in the country. 

Besides, the temperature in cities is another obstacle. Notably, the average temperature should be 15 to 40 degrees Celsius for better performance of EV cars. However, in India's hilly mountain areas, the temperature goes to minus, while western India has higher temperatures. At temperatures above 45–50 degrees Celsius, the battery's electronics deteriorate faster, the report mentioned.

The expansion of charging infrastructure remains another factor in encouraging EV adoption, particularly in non-metro areas and rural communities with limited accessibility. While petrol pumps are ubiquitous, charging stations are noticeably scarce, underscoring the urgent need for expansion, the report added.

According to the data from the Ministry of Power, there are 12,146 operational public EV charging stations throughout the country. Karnataka led the table with 5,130 EV charging stations, followed by Maharashtra (3,079) and Delhi (1,886), respectively.

However, the silver lining is that the overall share of EVs in India's auto market rose significantly to 6.38% in 2023 from 1.75% in 2021.

The Niti Aayog has predicted that 30% and 70% of automobiles, 40% of buses, and 80% of 2 and 3-wheelers would be electric by 2030.

From scarce charging infra to city temperatures, EV adoption faces challenges in India

Amara Raja Advanced Cell Technologies Private Limited (ARACT), a wholly owned subsidiary of Amara Raja Energy & Mobility Limited (ARE&M), one of India’s 
battery manufacturers, will be signing a Memorandum of Understanding (MoU) with Ather Energy. As part of this agreement, Amara Raja will collaborate with Ather to develop and supply NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) Lithium-Ion and other advanced chemistry cells, produced locally at their upcoming Gigafactory in Divitipally, Telangana. 


<a href="https://www.storyboard18.com/advertising/exclusive-ather-energy-gives-its-integrated-media-mandate-to-initiative-35234.htm" rel="noopener" target="_blank">EXCLUSIVE: Initiative wins Ather Energy's integrated media mandate</a>

Amara Raja recently entered into an agreement with Gotion-InoBat-Batteries (GIB) that will facilitate it to localise current global LFP technology for making Lithium-Ion cells specifically suited for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology. 

With India focused on clean and green energy, the automotive industry is witnessing a big transition towards electric vehicles (EVs), particularly in the two-wheeler segment. Industry projections point towards EV 2W penetration to reach 40% by 2030. 

Both Amara Raja and Ather have chartered out ambitious plans to tap into this growing market potential. Ather Energy has two manufacturing facilities in Hosur, Tamil Nadu, with one dedicated to battery production and the other to vehicle assembly. Ather also has recently announced the setting up of another plant in Maharashtra. 

Amara Raja had announced an investment outlay of Rs 9,500 crores to establish a 16Gwh capacity gigafactory in Telangana. Additionally, the company is all set to lead India’s R&D capabilities by establishing a state-of-the-art advanced research and innovation centre 
called ‘ePositive Energy Labs’ in Hyderabad. 

Tarun Mehta, Co-founder & CEO at Ather Energy, said, “Our focus has always been on designing and building products from scratch in India, with most of our components, aside from cells, sourced domestically. Now, we're taking a significant step forward by promoting homegrown cell technology. This will help us optimize costs and enable us to source lithium ion cells tailored to Ather's specific requirements, further enhancing our ability to innovate 
and scale efficiently. Our aim is to help the domestic industry grow significantly to support India’s energy demand now and in the coming future.” 

Vikramaditya Gourineni, Executive Director, Amara Raja Energy & Mobility Ltd said, “We immensely respect Ather’s contribution to electrify mobility in India and their unique approach to overall eco-system development for sustainable personal mobility solutions. At Amara Raja, we have significantly progressed in our efforts to building world-class facilities to manufacture cell and battery packs customised for Indian conditions. Our recent 
collaboration with Gotion-InoBat will accelerate our efforts towards the same. We are proud to partner with Ather and together we will focus on building market relevant solutions in India’s journey towards indigenisation of Electric Vehicle technologies.”

Amara Raja and Ather Energy partner for EV battery development

Ola Electric, backed by Japanese investment firm Softbank, is planning to launch its initial public offering as early as the first two weeks of August, according to a Moneycontrol report.

The proposed IPO, the first by an Indian EV two-wheeler, would be a watershed moment for the domestic auto industry, encouraging rivals such as Ather Energy to examine value unlocking schemes.

"The firm is looking to raise around $740 million through a combination of a fresh issue and an offer for sale, with a post-money valuation of $4-4.25 billion," Moneycontrol reported.

The desired valuation was derived to create an opportunity for investors to generate returns. Another person was privy to the process.

Temasek, the Singapore investment powerhouse, sponsored Ola Electric's most recent funding round in September, which valued the company at $5.4 billion.

According to the draft filings, Ola Electric's IPO included a fresh offering of RsAccording to its draft papers, Ola Electric's IPO included a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore, for a total of Rs 7,250 crore. Existing owners reportedly sold 95.19 million shares in the OFS.

Founder Bhavish Aggarwal will sell 47.3 million shares. According to the draft papers, the firm's founding investors, including AlphaWave, Alpine, DIG Investment, Matrix, and others, will sell 47.89 million shares through the OFS.

According to the DRHP, Ola Electric will use the profits for capital expenditures, debt repayment, and research and development (R&D).

Softbank backed Ola Electric's $740 mn IPO likely in August

Despite a temporary slowdown, the Battery Electric Vehicles (EVs) sales are likely to hit the 10 million milestone this year, according to a report by Counterpoint. 

The report, "Global Passenger Vehicle Forecast" mentioned that growth in battery EVs will be supported by the revamping of the production process, partnerships with the manufacturers, and bolstering the supply chain.

<a href="https://www.storyboard18.com/quantum-brief/electric-vehicles-hit-15-percent-of-bmws-total-sales-across-the-world-26495.htm">Electric vehicles hit 15 percent of BMW's total sales across the world</a>

At present, China is the dominant force in the 'battery electric vehicle' market, with sales projected to be 4 times that of the US market in 2024, the research projected. 

Besides, China will maintain more than 50% share of global EV sales until 2027 and is expected to register more sales than the US and Europe combined in 2030. 

<a href="https://www.storyboard18.com/how-it-works/ea-sales-in-india-jumped-49-25-percent-year-on-year-to-1529947-units-in-2023-20005.htm">Electric vehicle sales zooms 49 percent to 1.52 million units in 2023</a>

"The EU’s new tariff rates for Chinese EVs aim to level the playing field for European EV manufacturers, which are struggling to compete with lower-priced Chinese imports. These tariffs might push Chinese automakers towards emerging markets like the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand. The outcome of EU-China talks, especially with Germany’s opposition, will shape future EV market dynamics, with Europe and the US driving growth from 2025 onwards," Liz Lee, Associate Director at Counterpoint said.


However, from 2025 onwards, Europe and the US will start emerging as a major growth driver in this segment, the research added.

The Counterpoint report predicted that China's BYD market share would overtake Tesla's EVs in 2024. 


However, research analyst Abhik Mukherjee said that automakers like Volkswagen, Ford, and General Motors are positioning themselves to compete with the market leaders by revamping supply chains and producing affordable EV prices below $35,000. 

The research also predicted that hybrid vehicles, including plug-in hybrid electric vehicles and hybrid electric vehicles, will continue to dominate the electrified segment in the near term.

EV sales may hit 10 million in 2024; China likely to remain dominant force until 2027: Report

Global passenger EV (BEV+PHEV) sales grew 18 percent YoY in Q1 2024, according to Counterpoint’s EV Market Tracker. While BEV sales increased by a modest 7 percent YoY during the quarter, PHEV sales grew 46 percent YoY.

China remained the global leader in Q1, followed by the US and Europe. China’s EV sales grew 28% YoY, while the US recorded a modest 2% YoY growth. Overall EV sales in the US grew, but BEV sales declined by 3 percent YoY.

Leading EV players like Tesla and BYD have managed to reduce their BEV manufacturing costs, allowing them to offer competitive prices. This has put pressure on other automakers like Ford and GM which are struggling to reduce their manufacturing costs. These companies have introduced BEVs at competitive prices but are facing significant losses.

To mitigate these losses, traditional automakers are adjusting their BEV targets and prioritizing PHEVs. The increased adoption of PHEVs is expected to continue until these automakers develop strategies to reduce BEV manufacturing costs and meet emission targets to avoid fines.

Research Analyst Abhik Mukherjee said, “The cheaper upfront cost of PHEVs when compared to BEVs and the availability of a fuel tank that eliminates range anxiety were among the main reasons for high PHEV demand.” PHEVs are available in different body types, like sedan, SUV and crossover. Buying mid-priced PHEVs is a more logical choice for consumers since their prices are comparable to or lower than most of BEVs. In this category, PHEVs with the SUV body type is more in demand.

Despite a 9 percent YoY decline, Tesla regained the top position in BEV sales in Q1 2024, commanding a 19% market share. Following closely behind were the BYD Group and Volkswagen Group. Notably, among the top three OEMs, only BYD achieved growth (13% YoY), while both Tesla and Volkswagen experienced declines of 9% and 4% YoY, respectively.

BYD also excelled in the PHEV segment, accounting for nearly one-third of global PHEV sales, followed by Geely Holdings and Li Auto. BYD exported almost 100,000 EVs, including PHEVs, with a substantial 152% YoY growth, primarily in the SEA region.

Commenting on the market outlook, Associate Director Liz Lee said, “In 2024, the EV market is poised for significant growth, yet signs of a slowdown also loom and the annual growth may dip below 20%. The leveling off of early-adopter interest suggests a shift in consumer dynamics to the mass market in the long term and a new phase of evolution for the EV industry.

BYD’s remarkable export performance, especially in the SEA region, highlights the growing global demand for EVs, including PHEVs. However, Tesla, which has only BEV fleets, currently faces challenges such as production delays and weakened early-adopter demand, which initially boosted its sales in advanced markets.”

Global EV sales jump 18 percent in Q1 2024 on PHEV momentum

In conversation with Kia India’s Hardeep Singh Brar

Before Bengaluru-based Bounce Infinity hit the road, the two-wheeler electric scooter brand conducted a multi-state survey to understand what consumers really want. Amit Mehta, its director, head — growth and marketing, says the company found that potential consumers, especially women, feel that scooters in India are still masculine in nature because most brands in the space focus on ‘ultra-futuristic’ and ‘alien’-ish design elements. Keeping this insight in mind, the brand decided to have a strong chassis with subtle looks. The other feedback was that it should be comfortable to ride, and safe, adds Mehta.

Bounce Infinity started deliveries in April 2022. The company has so far registered 60,000 bookings. In the last 100-plus days, over 4,500 scooters have been delivered. Currently, 35% to 40% of the brand's customers are women. Mehta credits the uptick in sales to the sturdiness of the scooter, which women riders are actively looking for.

Recently, Bounce Infinity became an official partner of Kemp Football Club (Kemp FC), a Karnataka State Football Association (KSFA) club and training academy based in Bangalore. From the marketing viewpoint, the brand is focusing on building awareness on adoption of EVs along with discussions around the discrimination faced by women on the football field. The company will give the best female player of the club a Bounce Infinity bike.

It’s not just the startup auto brands that are speaking to their women customers. After the positive success of its Nexon EV, Tata Motors recently conducted a survey to understand its consumers. The results of the survey highlighted that over 14% of Nexon EV owners are women, and indicated that there is a rise in enquiries by women buyers for the model. In Q1 FY23, the market share of the company among electric vehicles stood at 89%,

“The automobile industry has seen an immense increase in women buyers over the years,” says Vivek Srivatsa – head, marketing, sales, and service strategy, Tata Passenger Electric Mobility. “Driven by education, work, and changing lifestyles, women are becoming majorly involved in the car buying process and currently account for a good share of sales in the sector, which has led to an increased demand for personal mobility in the post-Covid era.”

What really are women buying?

Suman Mishra, chief executive officer, Mahindra Electric Mobility, goes on the ground to understand the sentiments of potential women buyers, mainly the ones who pick an e-Rickshaw or an e-Auto. Mahindra Electric Mobility holds more than 70% market share in the three-wheeler electric vehicle space. Mishra says women customers are a small but growing base, particularly in the electric segment.

During her conversations with women drivers, Mishra realised that most of them began driving a 3-wheeler electric vehicle after the loss of their household income. She further highlights that women, in the beginning, have apprehensions about driving an auto due to the perception that it is a man’s job. “The challenge lies in making them aware that driving an auto is gender-agnostic,” she adds.

However, after they start driving an auto, there is a sense of pride and ease that builds up. Also, from the maintenance point, the e-rickshaw and e-auto segments are not too complicated. Women customers are getting educated on the benefits of driving electric vehicles and spreading the word to their inner personal networks.

YSR Rajeev Kumar, chief mentor of EV Masterclass, a programme that helps governments, EV companies, students, etc solve problems for the industry, says women who are blue-collar employees focus on buying 2-wheeler and 3-wheeler electric vehicles. Women, who are white-collar employees, would mostly prefer 2-wheeler electric vehicles. Four-wheeler electric vehicles mainly attract women who have higher purchasing power.

According to media reports, in the first half of 2022, it was reported that around 1,814 4-wheeler electric vehicles were sold. The upfront cost of a 4-wheeler electric vehicle is 30% to 40% higher than its counterpart, internal combustion engine vehicles (ICE). This pricing will continue for the next 2-3 years. In the case of 2-wheeler EVs, Kumar explains that adoption will be immediate among women due to the cost factor. Today, in India, the average cost of an EV scooter is anywhere between Rs 1 lakh and 6 lakh.

Aiming to accelerate adoption

From a marketing point of view, brands must position electric vehicles as a mode of convenience that has lower running costs, especially for women, suggests EV Masterclass' Kumar. Earlier this year, there were several incidents of EV 2-wheelers blowing up or catching fire. Kumar thinks EV brands — both startups as well as established players — should design special campaigns around safety and awareness. Tailor-made campaigns for women will also add new flavour to the category, he adds.

Some schemes have been introduced by the state governments of Delhi, Goa and Odisha targeted specifically at women buyers, increasing the affordability of 3- wheeler EVs.

Mahindra Electric Mobility’s Mishra says that the company works closely with dealer partners to increase visibility for its vehicles among women. “In some cases, our partners offer driving education to first-time women buyers, which enables them to make the purchase decision. We are also working on incorporating some ergonomic improvements in the vehicles that will make them more suitable for women drivers,” she adds.

EVolve 2022: EV brands are telling women—hop on!

Barely two years after launching its first EQC (battery electric compact luxury crossover SUV) in India, luxury auto giant Mercedes-Benz is looking to rapidly expand its electric vehicle footprint. 

At the centre of its electric future is a well thought-out marketing strategy where the automaker is creating awareness, intrigue and interest amongst customers about EVs while also indulging in friendly banter with competition and growing the EV category in India. 

Some of the notable campaigns by the company include #SwitchtoEQC where Mercedes talks about how quiet its EVs can be or the welcome campaign it did during its competition Jaguar’s iPace launch in India. 

In an exclusive conversation with Storyboard18, Santosh Iyer, who was recently elevated to MD and CEO of Mercedes-Benz India, talks about cracking the EV market, understanding the customers and larger industry issues including EV fire incidents.

Edited excerpts. 

How is your marketing strategy evolving when it comes to EV marketing?

Our integrated marketing strategy for EQC aimed at inspiring our customers to embrace ‘sustainable luxury mobility’ and become early adopters with the EQC - India’s first luxury EV. EQC marketing strategy combined with the unique product attributes, created a strong awareness, drove curiosity about luxury EVs and their practicality in daily usage and firmly established loyal brand advocates for our upcoming EV portfolio. There is an increased acceptability for a luxury EV amongst our customers nowadays compared to even three years back. 

How is EV marketing different from conventional auto marketing and advertising?

The EV campaigns are for a more tech-savvy, younger audience and focus on social media. For instance, our recent campaign on EV highlighted the “Magical Garage” concept, which showcased our prowess in technology and innovations, while driving the story of Mercedes-EQ with a creative twist.



<blockquote>Our EV campaigns are tailored to be unconventional, modular and directly targets the respective customer group. These campaigns are a lot more visual and avant garde than most other campaigns.</blockquote>



How is EV marketing different for luxury customers?

Marketing a luxury EV is kind of similar to marketing a top-end luxury vehicle as the focus remains on individual requirements and brand experience desired from the brand. As most of our EV customers are also owners of a Mercedes-Benz, the brand trust and recall is quite high. 

For a luxury EV customer, the marketing approach combines offering sustainable mobility with an emotional appeal and luxury brand experience synonymous with Mercedes-Benz. With our brand campaign and retail marketing approach we showcased the EV with its world-class products attributes along with an EQ ecosystem that promises hassle-free ownership devoid of issues like range anxiety, charging infra, etc.

Attributes like sustainable driving, zero emission, reduced carbon footprint, latest technology onboard, a hassle-free ownership etc, are highlighted through our marketing campaigns     

What do EV customers look for in EVs and brands? What are their barriers to entry?

These EV customers look for foresight, pioneering spirit and unconventional approaches from brands they want to own or associate with. They look for innovation, pioneering technology and sustainability from an iconic brand like Mercedes-Benz all these characteristics reflect in their individual choices and beliefs

Barriers for these customers can still be in the form of very high prices to an extent and the limited choice of products available currently. However, we are striving to change that with our EQ model portfolio as we plan to introduce the EQS and EQB luxury EVs by 2022. 

Based on their preferences and persona, our EV campaigns are tailored to be unconventional, modular and directly targets the respective customer group. These campaigns are a lot more visual and avant garde than most other campaigns.

<iframe width="560" height="315" src="https://www.youtube.com/embed/DVRia5gpB-0" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

What are the key challenges that EV makers are facing in India? 

High duty of the cars remains a strong deterrent for wider adoption of luxury EVs. However, the long range of our EQ models (EQS range is 770 Kms) alleviates any range anxiety even for inter-city travel. With localization of EQS we also aim for an attractive positioning of the flagship luxury EV in the market.

However, the EV customer will still demand a robust, hassle-free charging infrastructure and an EV ecosystem. 

EVs are garnering a lot of negative publicity owing to vehicles catching fire and exploding. How do you deal with such issues as an industry?

These issues are surely concerning and regulations have to be in place regarding safety and security safeguarding the end customers’ requirements.

As OEMs (original equipment manufacturers), we have to introduce products in the market which are of world-class quality featuring the latest in-car technology, most efficient powertrains, powered by high-performance battery technology and having robust structural integrity, to ensure overall safety of passengers remain, totally uncompromised.


Note to readers: The last decade has witnessed significant advances in mobility and transport. New technologies and opportunities have brought a dramatic change to our societies. Planet and people-friendly transportation is more relevant than ever in the history of humankind, with everything from health to climate crises hitting us at warp speed. Storyboard18’s Month In This - EVolve 2022: Building an electric future, is an opportunity to bring to the forefront conversations around charging up marketing and brand building, to exchange and share new ideas, challenges and solutions in the field of clean transportation and mobility. Catch this Storyboard18 special on Moneycontrol, CNBC-TV18 and Forbes India.

EVolve 2022: 'EV campaigns are more avant garde,' says Mercedes-Benz’s Santosh Iyer

BMW India has put its creative and media account up for review. Industry sources aware of the development tell Storyboard18 that the pitch is underway in Delhi. The account size is pegged in the vicinity of Rs 150 crore. 

IPG-owned Lodestar UM is the incumbent. The agency handles the brand’s media investment and strategic planning in print, television, online, out-of-home (OOH) and radio. Lodestar UM has been handling the account since 2017. 

In 2021, after a rigorous multi-agency pitch, IPG’s Team Dynamic was announced as BMW India’s integrated communications partner. Team Dynamic is a bespoke IPG solution created for BMW India, with regional resources drawn from across IPG. The unit has been working on the brand's creative, digital services, and studio production work.

Earlier in 2022, the German luxury carmaker sold out the allocated batches of SUV iX and an all-electric MINI for the year in India. The company’s midsize electric sedan i4 was launched in May. 

According to media reports, globally, BMW is set to introduce 25 electric vehicles by 2023. Nearly half of them – the full electric ones – could be launched in India. BMW India's ad spends were around Rs 139 crore in FY21 compared to Rs 171 crore in the previous fiscal. 

Experts say that the Indian automobile industry has been grappling with a slowdown since 2019. A combination of factors including the BS6 emission norms, global shortage of semiconductors, the pandemic, and the tense socio-economic environment across the globe, has slowed down the auto sector. However, there are positive signs as big players in industry, especially in India, are driving towards recovery.

As per market and consumer data experts Statista in 2020, the Indian automotive industry spent 39 percent of its advertising budgets on print media, followed by television ads at 29 percent of the total expenditure. Interestingly, the spending on digital advertising increased from 12 percent in 2018 to 25 percent in 2020, while cinema ad spends decreased from 11 percent in 2018 to just one percent in 2020 when the pandemic hit. 





Pitch, Please: BMW India puts its media and creative account up for review

Note to readers: The last decade has witnessed significant advances in mobility and transport. New technologies and opportunities have brought a dramatic change to our societies. Planet and people-friendly transportation is more relevant than ever in the history of humankind, with everything from health to climate crises hitting us at warp speed. Storyboard18’s Month In This - EVolve 2022: Building an electric future, is an opportunity to bring to the forefront conversations around charging up marketing and brand building, to exchange and share new ideas, challenges and solutions in the field of clean transportation and mobility. Catch this Storyboard18 special on Moneycontrol, CNBC-TV18 and Forbes India. 

“Once you try an EV, it’s hard to go back to internal combustion,” says Arun Vinayak, founder of Exponent Energy, a Bengaluru-based maker of battery packs and battery management systems. Vinayak’s statement might seem biased, and can possibly invite the ire of many-a-petrolhead but is objectively hard to argue with. 

Electric vehicles deliver torque instantaneously, have far fewer components than an internal combustion vehicle, and therefore experience far less wear and tear. They’re silent and swift and capable of being constantly updated via easy-to-download software upgrades. They’re the future.

In the last two years alone, the EV segment has witnessed immense growth. The last financial quarter alone revealed a cumulative growth of 668% across two, three and four-wheeled electric vehicles (according to FADA data). Experts suggest that first adopters of EVs were drawn towards the technology for a multitude of reasons. According to Bertrand D’Souza, Editor-in-Chief of Overdrive, consumers do wish to contribute towards sustainability, although high costs of petrol and diesel are a major reason for the shift to EVs. “People also want to drive what few other people own” 

According to Hormazd Sorabjee, Editor-in-Chief of Autocar India however, the average EV consumer has always been buoyed by financial incentives as EVs, for the first time, present a viable alternative to the rising cost of petrol and diesel. Environmental considerations rarely, if ever, come into the picture. “95% are concerned about their wallets rather than saving the planet” 

Even though EV startup’s like Ather Energy began building an EV brand in 2013, with both its co-founders, fresh out of IIT, it wasn’t until four years ago that the technology became a viable mobility solution. “Back in 2014, it was more of an urban mobility toy,” says Vinayak who formerly served as the Chief Product Officer at Ather Energy. “Now when people are looking for a product that’s efficient, well built, well designed, EVs have made it to the choice list, across the price spectrum,” he adds. Sorabjee seconds that notion, citing low running costs and ease of use as the chief preference for early adopters. “EV adopters are ready to embrace the technology as the future”. 

In many ways, brands like Tesla were almost single-handedly responsible for putting EVs on the global map, by making them desirable. No longer was the technology limited to golf carts and milk floats. Instead Tesla proved that lithium-ion battery chemistry could be used to deliver explosive speed, wrapped-up in top-shelf luxury. Tesla may have done plenty to make the technology aspirational, but the price point it operated in, did little to make it accessible. And while global carmakers continue to struggle with the conundrum of the elusive low-cost EV, the challenge of making EVs accessible seems to have fallen upon Indian EV makers, offering a variety of two-wheeled mobility solutions to a populace besieged by crippling fuel prices. Unlike highly industrialised car markets like the US and Europe, India’s EV market has grown from the bottom up. By all accounts, when it comes to Indian consumers, utility trumps novelty. However, when it comes to purchasing decisions, it’s not all number crunching and utilitarian logic, as far as the Indian EV buyer is concerned. 

Srinivas Krishnan, Senior Vice President at Adfactors PR, says that the risk-taking ability of the Indian EV consumer is not to be overlooked. “I think the Indian consumer, yet again, is surprising OEMs, the government, policymakers and all other stakeholders in the mobility space.” According to Krishnan, there have been several missing links in the E-mobility space, despite which, consumers were willing to put their faith in relatively unknown technology. 

<blockquote>“We are still an emotional lot, we perceive risks and rewards differently as compared to many other consumer cohorts in other countries,”</blockquote> 

says Srinivas Krishnan, adding that brands which are mindful of this notion, and attempt to understand the Indian EV consumer’s willingness to experiment with promising technology, are the ones that go far. “The most successful companies in India are those that treat the Indian customer with respect and take the effort to understand their behaviour rather than try to unilaterally change it”. 

Of course that isn’t to say that Central and State Government sponsored rebates and incentives haven’t played a role. In fact there’s an evidently direct correlation between EV sales, particularly for e2W and the FAME II incentives and state EV policies that have been introduced in 2021. But it’s not as if the EV space has been entirely moribund in the states that are yet to offer incentives (Karnataka, for example) on par with the most pro-EV states (Gujarat, Maharashtra).

Barriers to entry 

Despite the steady growth that the EV segment is experiencing, it still occupies only three percent of the overall market share, with electric two-wheelers occupying the lion’s share of the sliver of the automotive pie. The reasons are manifold and are interconnected in a way that perpetuates the cycle of EV sparseness. “Personally, I am ready to switch to EVs. But there is currently no product in the segment I want,” says Krishnan, a motoring traditionalist who drives a diesel crossover on most days, with a penchant for classic and vintage automobiles. The lack of options in the EV space are one of the many issues keeping potential customers at bay, and, as a corollary, has caused many manufacturers to continuously hedge their bets when it comes to introducing EVs. This in turn keeps more customers from making the switch. 

For starters, no local manufacturer, be it Tata Motors or Maruti Suzuki, has managed to successfully take a crack at the affordable low-cost EV. Something of a chimera, given that lack of local lithium-ion cell manufacturing and battery costs make it impossible to sell EVs at an entry-level price point. Then there’s the fact that low-cost hatchbacks come with the sort of footprint which allows for a lower battery cell count, and therefore, lower range. It’s no accident that one of the first breakthrough EVs happened to be a large, luxury EV like the Tesla Model S. It allowed its makers a large canvas upon which a large battery could be placed, to justify the high costs. The fact that it made the product aspirational was an added benefit. 

<img src="https://images.storyboard18.com/storyboard18/t-684x1024.jpg" alt="" width="684" height="1024" class="alignnone size-large wp-image-1462" />

The absence of a strong public charging infrastructure, especially on highways, has played a major role in keeping EVs out of the driveways of single-car households. Why buy a car that limits mobility? “Mobility is about freedom. It’s about going where you want, when you want. And with the advent of cab aggregates, mobility has become a lot more flexible,” says Exponent Energy’s Arun Vinayak, adding that at present, electric mobility in the country does not offer that sort of untethered freedom. According to Sorabjee however, the reasons for limited adoption aren’t all that complicated and essentially come down to one thing: price. “EVs are too expensive. Range and charging infrastructure aren’t such an issue because people who are ready to buy an EV have sorted out their charging and range requirements before they sign the cheque.”

Ravin Mirchandani, Chairman of the ADOR Group, a manufacturer of AC and DC power solutions, concurs. 

<blockquote>“Cheaper will always win in India. And EVs will win when the total cost of ownership is at par with an ICE vehicle.”</blockquote>

But he sees the light at the end of the tunnel, that may be ending. “We will see an inflection point around 2025 in electric car ownership, because that’s when giga factories (for localised battery manufacturing) are scheduled to come online,” he adds. Mirchandani’s claimed inflection point, however, doesn’t come with a quantifiable number. And the only number that has come out of market research, isn’t particularly encouraging, pointing at a highly optimistic 30 percent market share by 2030. In reality, it’s likely to be somewhere between 20-25 percent. If everything goes according to plan. 

How brands are approaching the matter 

Even though the EV story in India has just begun, consumer focus and concerns appear to have gone through a shift, especially when it comes to electric two-wheelers, a lot of which gained notoriety over the last six months, for catching fire, seemingly spontaneously. 

Ather Energy, which has developed a reputation for making reliable, robust products, chose to highlight its battery’s resilience as the USP of its latest offering, the Gen 3 450X, instead of range and speed. Sure, range went up with the Gen 3 update, as did battery size, but those weren’t the elements that made it to Ather’s latest ad campaign. The TVC shows the brand’s head of Battery development sitting atop an oven containing Ather’s own battery pack, while eating ice cream. The word “battery” is then mentioned several times in the 1 minute long advertisement, with no mention of design, range or any of the scooter’s external attributes, signifying that battery safety is now front and centre, the main focus for e2W consumers. 

But concerns around battery safety aren’t something manufacturers can quell alone. “There will always be a reason not to adopt certain technologies,” says Krishnan, advocating that it will take concerted efforts from all stakeholders to accelerate adoption of zero emission vehicles. Not doing anything is no longer an option.” Krishnan, a PR pro sees a silver lining in the clouds of smoke emanating from burning batteries. “EV fires are a crisis that needs to be turned into an opportunity. By bringing awareness and getting the government to pay attention to this issue and regulate it. It’s the only way to separate the wheat from the chaff.” 

Vinayak is of a similar view when it comes to the need to differentiate between EV start-ups. “In India, I think we have three kinds of OEMs. First you have legacy OEMs who have ventured into EV making and they understand the need for quality and trust. Then there are start-ups which are building a serious product from the ground-up. I think Ather has done a very good job of establishing customer trust. Then you have the traders, who essentially repackage imported components and essentially just wish to make a sale and not design or create anything special. That one portion of the industry doesn’t do justice to what EV segment could be”. 

According to Bertrand D’Souza, “Brands fixate on performance and range instead of sustainability, probably because the entire cycle isn’t sustainable or eco-friendly yet” adding that “manufacturers don’t talk enough about how EVs reduce dependency on fossil fuels or if their vehicles are made from recyclable materials. For early adopters, these are critical matters” 

EV brands have clearly incorporated consumer anxieties into their marketing rhetoric, but according to Sorabjee, they’re yet to highlight the other obvious benefit of owning an EV: they’re just much easier to use and own. “EV Brands have focussed on the obvious, so far, which is about how EVs benefit the environment and how cost effective they are (in the long run). The fact that they are much easier to own and drive than ICE vehicles hasn’t been highlighted enough. EVs really take the stress out of everyday driving,” says Sorabjee. 

According to Arun Vinayak, EVs can be marketed around a vast number of aspects from the humdrum to the sensational. “You can tell a story about efficiency via a scooter providing a cost advantage, or a story about how an EV can be faster than a sports car,” he says. Krishnan reaffirms that much of the sensationalising of EVs was done by Tesla alone. “Tesla single handedly revolutionised the image of EVs.”

D’Souza feels that range will continue to be a core area of focus for brands, regardless of the price of the EV, or the segment which they operate in. “The current effort is to make denser batteries with higher range. But this would not be necessary if there was an adequate charging network, which still does not exist, both in India and globally” He also predicts that range anxieties will be alleviated in the future, but it will take a major infrastructural overhaul. “Studies have shown that what is required is a grid spread 50km apart from each other to ensure seamless mobility.”