Electronic vehicles are expected to drive significant behavioural changes in the Indian market and its increasing adoption will lead to new business models in the mobility value chain going forward.
According to Feedback Business Consulting Services’ Multi-Client Mega Trend Report on the future of Electronic vehicles (EV), the concerns on operating range of EVs are misplaced, as personal cars are increasingly used for point to point travel and for a limited range of kilometres, making EVs suitable.
The survey in more than 20 cities, across the metros, Tier 1, 2 and 3 cities said around 75% respondents travel less than 1,000 kilometres a month in cars and most of this travel is point-to-point.
Moreover, travel preference of commuters is changing from personal cars to fleet cars. In Metros, 70% respondents said their use of fleet cars or cabs increased in last 1.5 years.
With EVs coming in the fleet cars and lowering the operating costs in the long run, more passengers will move towards fleet cars in the future,” said A M Devendranath, Vice President and Head — Energy Practice, Feedback Consulting.
The report noted that Indian EV market will be very different than global markets as the dynamics of Indian economy, market needs and consumer attitudes are very different.
As per the report, India, home to one of the largest 2-wheeler population in the world will witness a fast shift to EVs as it has the inherent advantage of easy charging.
Meanwhile, personal cars will have a slow shift in the initial 2-3 years till major Auto Original Equipment Manufacturers (OEMs) come with their range and variety and then the movement will have its momentum.
The report stated EVs will drive new business models in the mobility value chain going forward.
If the battery swapping business model succeeds, we could see several battery service providers also coming up for various vehicle categories. The level of players and investments and technology will depend on the type of vehicle these are used for, Devendranath added.