Understanding the EV market
scenario in India through the lensof Industry experts
September 2023
INTAGE INDIA Private Limited* The copyright of this report is owned by Intage India Private Limited/ Intage Group.
* In the event that damages, or other troubles occur to the user or a third party due to the reprint or
citation, Intage India Private Limited/ Intage Group shall not be liable for it.

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Contents

Table of Contents

Page

Research Design

3

Understanding customer expectations from EVs

6

BEV Segment in India: Current scenario and Future trends

14

BEV Manufacturers (OEMs): Challenges in manufacturing BEVs &Support from the government

16

BEV charging infrastructure & preferences in India

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Research design

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Introduction & Background

India's EV market has been experiencing significant growth and has thepotential to become one of the largest EV markets globally. Lot of changes canbe observed in automotive sector due to introduction of EV. It's important to note

Context
Settingthat the EV market is dynamic & subject to various factors, including
government

policies,

technologicaladvancements,

andconsumerpreferences. For staying updated its required to understand the insights fromindustry experts of this field and have an overall understanding of EV
ecosystem & market scenario in India.

To provide the research findings with the below objectives through the IDIs

with the Industry experts from both 2W & 4W segments for Electric vehicles
in India.

Objectives

I.

EVs: Drivers & BarriersII.

Impact of Government Initiatives in ecosystem.

III. Expected growth of market 2W/4W

IV. Opportunities & Challenges for OEMs

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Design & the Target group for the research

Bangalore
Delhi/ NCR
Sample split basis the presenceof the target OEMs in both 2W &4W segments.

Virtual In-Depthinterview
Few of the profiles of the TG
from Automotive sector:•
Target department isMarketing, R&D, Sales,
Consumer Insight.
•
Designation is Senior
manager level or higher.

60 min/ IDI
Virtual In-depth Interviews(IDIs) were conducted with EV
experts from both 2W & 4W
segments.

EV 2-Wheeler OEMs: 3 experts

6 interview

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EV 4-Wheelers OEMs: 3 experts

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Understanding customer
expectations from EVs

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Electric Vehicles scenario globally & in India
Electric Vehicle is a new buzz word globally. It is widely noticed
that preference of people is shifting at a much faster pace towards
Electric Vehicles across the globe. China leads the Electric Vehicle
market and has almost 70% of global market sales followed by
Europe and the USA while rest of the world holds a small portionof Electric Vehicle sales. India is also inching towards the same
trend, the consumer base for electric vehicles (EVs) in India isevolving and expanding rapidly with a long way to go comparedto the global markets. Over the past few years, there has been agrowing interest in EVs among Indian consumers.
In the developed countries, most of the EVs are cars whereas, 2W
and 3W have the majority share among EVs in India.
Few reason majorly contributing to this growing interest in EVs
are:
Rising fuel prices

Technology Advancement(Source: Electrify America)

Environmental concerns
Government initiatives

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Awareness about EVs & its types among consumers in India
Being a niche category, there is a general awareness about EV but lacks an in depth understanding about
the types of EV present. EV segment is still fascinating for a lot of people at an overall level. Among those
who are aware, few of the perceived thoughts and benefits about EV are:

1.
2.
3.

New trending TECHNOLOGY in Automotive.
COST EFFICIENT due to low running cost.
It saves ENVIRONMENT.

There is a prevailing perception that EV is considered as a saving option for commute and not associatedwith performance. General public lack understanding about EV and a lot of apprehensions and concern
around affordability, range, and battery life exist in the minds of consumers. Consumers need to be
educated about the different types of electric vehicles, their features, range, safety aspects mainly related tobattery life to boost the acceptability of EVs in India.

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2-Wheeler

In 2-wheeler space , people are aware and excited about EV
mainly due to its low running cost and negligible differencein the price parity with respect to IC engine vehicles. The EV
2-W is mostly used to cover shorter commute distance.
However, the awareness about types of EVs is relatively
LOW.

Among the 4 wheelers segment, the awareness about thetype of EV is considerably MODERATE due to the presenceof Hybrid and other type of models with different powertrain
being available in India & globally.

4-Wheeler8Key essential consideration factor for BEV purchase
What are CONSUMERS considering? Vs What should consumers consider as per the INDUSTRY EXPERTS?
Consumers

Industry Experts“brand matters as it enhances
trust factor and resale value.
Brand reputation is an
important factor as it isassociated with brandreliability, product reliability
and durability in customer’s
mind”“The companies should
provide more battery
warranty to its customer& need free Replacementof Brake pads”

Technology Upliftment – Many young consumers are considering BEVs

Brand: The reputation of the Brand can be an important factor for some BEV

because of its advancement in Technology with features like connectivity,
vehicle safety & other convenience aspects.

buyers.

Driving range: Customer considers Driving range as one of the key factors

fuel and maintenance costs, these factors are considered by BEV purchasers.

while purchasing BEV.

Battery health: The lifespan and durability of the battery are importantfactors for BEV buyers.

Government incentives through subsidy: Government policies like the
FAME II scheme, which offers financial incentives, are making BEVs more
attractive to the users.

Cost savings: Cost savings from BEV due to the rise in fuel prices is also
one of the consideration factors to opt for BEVs.

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Total cost of Ownership: BEVs offer long-term cost savings due to lower

Power & Health of the Battery: The lifespan and durability of the battery
would be the important factors for BEV buyers.

Charging compatibility: The availability and accessibility of charging
stations can greatly impact a buyer's decision to purchase a BEV, which makes
it crucial to focus on the charging compatibility aspect.

Warranty: Though battery pack are the most expensive components of a BEV,
it's important for buyers to be aware of the warranty offered by manufacturers.

After sale services: After-sales service and support are crucial factors toconsider when purchasing an electric vehicle as it is relatively a new technology.
9BEV Acceptability: Drivers Vs Barriers

BEV: Drivers
ECONOMIC BENEFITS: It includes subsidy provided by government. Tax rebate, Low running cost
& Maintenance cost are some of the perceived benefits.

ENVIRONMENT & SOCIAL BENEFITS: No emission of greenhouses gasses, No noise
pollution, New technologies give more control over our daily life. Enhanced social status due to its
price.

PSYCHOLOGICAL BENEFITS: Considered as Self pride- as it is about embracing & adapting a
new technology with higher price, it gives a sense of pride among family & friends.

BEV: Barriers
HIGHER PRICE: Huge initial cost is perceived to be a pain point. Both 2W & 4W are sold at
20% and 50% premium respectively compared to IC Engines.

LACK OF CHARGING & SWAPPING INFRASTRUCTURE: With roughly 6 lakh EVs runningon road the charging station in India are only up to 2000. This is perceived as a major concern.

RANGE ANXIETY & TESTING MEASURES: It is perceived that BEVs cannot be used for longride due to limited range per single charge. There are concerns over proper measures or regulatory
framework for testing battery before installation.

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10Suitability factor of EVs in Indian market: Awareness → Acceptability
Awareness

In India, for EV in 2-Wheeler segment, the awareness is limited to Battery
Electric Vehicle (BEVs)
Acceptability

BEVs are well accepted but people are concerned about the range and cost of
the EV 2 Wheelers.

AwarenessAmong 4-Wheeler segment, consumers have awareness about Battery Electric
Vehicle (BEVs) and HEV (Hybrid Electric vehicle)“Consumers are generally aware of
only BEVs and not the other types““EV is used as an option forcommuting 50 km in and around thecity““There is a huge gap between the customer
awareness about EV and their purchasejourney. EV is a Trendy term for customers
as of now. BEV is used Globally but now
there is a shift to HEV”

Acceptability

In 4-Wheeler segment, people are accepting EV but due to range issue and lackof EV charging Infrastructure, Hybrid is still considered as the suitable option
for today.

“In hybrid the user need not worry aboutcharging the vehicle while experiencing abetter range or mileage”

It is believed that BEV is the future and lot of work has already started on its research &development. The dominance of BEV can be seen soon in below categories.

Electric Cars

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Electric 2-W

Electric 3-W

Electric Bus

Electric Commercial
Vehicles11Why should the consumers prefer BEVs over ICE vehicles?

Vs

Electric Vehicles

ICE Vehicles

Low (Battery)High (Fuel)No tailpipe emissions

Emits greenhouse gases

Running Cost

Low

High

Noise Pollution

No

Yes

Maintenance Cost

Low

High

Motor/Engine Efficiency

80%

30%

Energy Efficiency required

Emission

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Most Desirable features in BEV Segment
Connected Features: EV can be easily operated from Phone, Alexa andother electrical gadgets by enabling the push notification on battery
discharge, Geo tagging and other technologically advance features.
“Connected features on a smartphone or similar devices can offer entertainment and delight to individual
users. However, these features are particularly advantageous for commercial users, especially those
operating EVs with connectivity and telematics capabilities. Such users can utilize these features toschedule trips efficiently, optimize routes, maintain service logs, and manage fuel data records, among
other benefits.”

SOTA (Software over the Air): OEMs should use SOTA, to understandanalytics of the vehicle usage, performance & condition.

AI, Machine Learning & Automated after sales: The integration ofAI, Machine Learning, and automation in after-sales services for electricvehicles is enhancing convenience, efficiency, and vehicle longevity. By
harnessing these technologies, the EV industry is moving toward a moresustainable and customer-centric future.

Vehicle-to-Vehicle (V2V) communication: V2V communication
enables vehicles to exchange information with each other using wirelesscommunication technology. This information includes data about thevehicle's speed, location, and direction, road and traffic conditions ahead.

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BEV Segment in India:

Current scenario and Future trends

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Electric vehicles in India: Current scenario Vs Future trend••

The demand for battery electric vehicles (BEVs) is likely to grow significantly in the coming years, particularly in thethree-wheeler and two-wheeler segments. Rising fuel costs and a growing awareness of the environmental impact ofgasoline vehicles are driving this trend.
As for the production capacity , BEV Manufacturers continues to increase the same, as it is likely that the sales will
also continue to grow. In fact, it is believed that at least 30% of the current production capacity of EV manufacturers inIndia will be utilized soon.
Overall, the BEV market in India is poised for significant growth, and manufacturers that can provide high-quality,
affordable, and technologically advanced EVs are likely to see strong demand from both commercial andconsumer markets.

Trend forecast of market share for BEVs in 2030
100%
50%

Other
50

0%

10
2022

Key reasons for Upward
trend

•

2030
2W

45

20
2022

2030
3W

15

4
2022

BEV

2030
4W

Rising fuel prices
Range for Daily
CommuteLow Running Cost

Low Running Cost

Government Subsidy

Government Subsidy

Environmental
concerns

Battery Guarantee &Warranty

High usage & Low
Maintenance Cost

Technological appeal

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BEV Manufacturers (OEMs):

Challenges in manufacturing EVs & Support from the government

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Key challenges for the OEMs manufacturing BEVs in India

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•
Regulatory
Framework••
Customers’
Perception &Adaptability

EV Charging
Infrastructure

EV Businesscase &
Profitability•

Many markets around the world, including India, have implemented stricter
emission standards and regulations to reduce greenhouse gas emissions andcombat climate change. Failure to meet these standards can result insignificant financial penalties for OEMs. As a result, OEMs are under pressure to
introduce new and more efficient vehicles to the market quickly.
There is no safety guidelines and regulations for electric vehicle batteries.
BEV business risk is high as consumers have certain barrier for BEV adoption
due to its high initial acquisition cost, lack of charging infrastructure andbattery safety concerns, making the customers slightly reluctant to embrace
this new technology.
Therefore, the demand for BEV persists but the conversion rate to purchasestill stands very low.

•

Lack of charging stations is a concern, mainly for the 4W segment. It becomes
important for the customers to better plan their travel routes as per theavailability of the charging points in advance.

•

There is a low purchase conversion of BEV’s among customers even though
the consideration is up to 50% to 60%.
It’s been one challenge for OEMs to satisfy the technological needs ofconsumer when it comes to BEVs with the higher range on full charge
expectations being one of them.

•17Support from Government to boost the BEV adoption in India

The government is promoting the adoption of BEVs through various incentives and policies, which will further boost
the demand for electric vehicles. The government is spreading awareness to increase the penetration of BEVs. Thereis direct support to OEMs from government on the manufacturing of BEV’s by providing some rebate on the import tax
and with the incentives to encourage and support the testing and manufacturing of BEVs.

Direct & Indirect Support from the government to the OEM manufacturing BEVs
•

•

•
•

FAME India Scheme (Phase II): The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India scheme
aims to promote the adoption of electric vehicles by providing incentives to manufacturers and buyers.
➢ Incentives for BEV Manufacturers: The Indian government was offering various incentives for manufacturers of electricvehicles and their components. These incentives include financial assistance for setting up manufacturing facilities, researchand development activities, and the creation of charging infrastructure.
➢ Reduced GST: The Goods and Services Tax (GST) on BEVs was reduced to 5% from the earlier 12% to make BEVs more
affordable for consumers and to incentivize their adoption.
➢ Customs Duty Exemptions: The government is considering to provide customs duty exemptions for certain BEV components
and parts to encourage local manufacturing and reduce costs.
Research and Development Support: The government is promoting research and development activities related to BEVs throughvarious grants, subsidies, and funding programs aimed at encouraging innovation and improving the technology associated with
BEVs.
Infrastructure Development: The government is working on improving charging infrastructure across the country by extending
support to OEMs and other stakeholders involved in setting up charging stations.
Electric Mobility Vision: India had set ambitious targets for the adoption of electric vehicles, aiming for a significant portion of thevehicle fleet to be electric by a certain year. This vision was expected to drive OEMs to focus on BEV manufacturing.

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BEV Charging Infrastructure & Preferences

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BEV Charging Infrastructure in India
In India, as on today, the charging infrastructure is perceived to be notsufficient, however the government is taking a lot of initiatives to promote this sothat required charging infrastructure can be built by collaborating and supporting all
the stakeholders in setting up the charging stations through a few of the below
mention initiatives.
1. National Electric Mobility Program (NEMP): This is the initiative to set up
charging infrastructure, standardize charging protocols, and promote theuse of renewable energy for charging stations.

2. Green Energy Corridors: These corridors aim to integrate renewable energy
generation with EV charging to promote clean and sustainable mobility.
3. Incentives for Charging Infrastructure Providers: The government offers
various incentives such as tax benefits, subsidies, and low-cost loans tofacilitate the establishment of charging stations.

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Types of Chargers in 2Ws & 4Ws in India
Universal charging slot is perceived to be a need to build good ecosystem for EVs, it is not practically possible for each EV brand to build its
own ecosystem. EV user have multiple options but majority of 4-Wheeler owners are dependent on Home base fixed chargers while
majority of 2-Wheeler owners are dependent on portable chargers.
Public chargers are mostly fast chargers and occasionally used by 4-wheeler owners ( Private Car), but majorly used by fleet owner. Amongthe 2W segment, there are chargers available like Charzers, Ather, Fortum, Zeon, etc. however, the usage of outside home charging in 2W isvery limited due to the limited usage as the 2-W are more often charged at home.
2 Wheelers
If case of 2-Wheelers, as of now all brand has its own charger type and the standardization norm is not prevalent. In this case using
universal charger is like a far-fetched dream as it is not just the connector type, but the wattage and capability of charging system is also
different. To standardize this, the government needs to take initiative and come up with some specified norm which every company is bound tofollow. Ather is an exception to this as its charger offers compatibility with any 2W and 4W BEVs.
4 Wheelers
In case of 4-wheeler brands, mostly the usage is from some listed connector, most of the brands are supporting type 2 charger and somebrands have designed their sockets in such a way that they can charge from multiple type of connectors.
AC Chargers (Slow Charger/Home
charging)
Type 1/J1772

Type2/Mennekes

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DC Chargers (Fast Charger)
GB/T Level

CHAdeMO

CCS1

CCS2

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BEV Battery types prevalent in 2 Wheelers

MeritsDemerits

In-built or
fixedbattery➢ Can be charged at home which is very
cheap and convenient.
➢ Less possibility of damage of battery as
its fixed properly, no chance of wear &tear.
➢ Linear power delivery & consistency ishigher.

➢ Need power points for charging in theparking space.
➢ Issue in case of flats/apartments for
those who don’t have fixed parking
location.
➢ Need 4-5 hours for charging. (Longer
duration)

Detachable
Battery➢ Can park the vehicle anywhere and takethe battery at the convenient place forcharging with 3-pin socket.
➢ This is a good option for those who liveat a places where electricity can’t bemade available at parking lot or parking
place is not fixed.
➢ Only battery can be carried back homein case anyone runs out of charge.

➢ Battery weight is heavy to carry➢ Possibility of damage while detaching
and charging. High chances of wear &tear.
➢ Need 4-5 hours for charging. (Longer
duration)➢ Chances of injury while
detaching/carrying the battery.

“With detachable battery no one
likes to carry the battery of 10 or
12 kg in their hands and go to acharging point, put it in charge,
then take a 10 or 12 kg battery
again back and put it in theirscooter and then drive”➢ Quick process, no waiting time.
➢ Good for vehicle in commercial use.
➢ No need to worry about battery range.

➢ One has to take subscription and pay
monthly/yearly subscription amount.
➢ Need to pay every time you swap thebattery no matter how much charge isleft.
➢ Condition of the battery swapped may
not be as good as the owned one.

““Swappable option is good when
one’s vehicle is in moving state, it
is costly but good for people who
are using it for commercial
purpose and don’t have time tocharge it”

Swappable
battery“Most convenient option for
consumers, less chances ofdamage to the pins of the battery
as it is fixed and need not be
removed, no wear and tear”“Swappable option is perceived to be good however the major concern is about the condition and the health of the battery
received in exchange during the swap may not be reliable or consistent in offering good performance, will always have thisfear at the back of their minds during every swap”

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Most OEM Preferred battery type for BEVs in 4Ws
As per the experts, Lithium-ion Battery have gained popularity over theyears, and this is the most preferred choice of batteries in EV for 4wheeler segment for the OEMs.
• Lithium-ion batteries are widely used in electric vehicles due to their high energy
density, which means they can store a lot of energy in a relatively small andlightweight package. They also have a high power-to-weight ratio, making them
ideal for use in electric vehicles.

• Li-ion batteries are also known for their thermal stability, which means they can
perform well even at high temperatures. This is important in electric vehicles, where
the batteries can get hot during use or charging.

• Furthermore, Li-ion batteries have a good recycling factor, which means the materials
used in the battery can be reused or repurposed, reducing waste andenvironmental impact.

• Overall, Li-ion batteries are a popular choice for electric vehicles due to their highenergy efficiency, power-to-weight ratio, thermal stability, and recyclability.
“Lithium batteries are preferred choice for the OEMS as the energy density is higher, more energy can be stored in asmall package, this eventually helps in offering great performance by keeping the overall weight lesser”

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Way forward to drive the adaptability of BEVs in India
Infrastructure Development : Establishing a robust charging infrastructure
network across cities, highways, and rural areas is crucial.

Incentives and Policies : Governments should continue offering attractive

incentives such as tax breaks, subsidies, and reduced registration fees for BEVs.

Local Manufacturing and Supply Chain : Encouraging local production of BEV
components and batteries will reduce dependency on imports, lower costs, andcreate job opportunities.

Affordable BEV Options : Manufacturers should focus on developing affordable BEVmodels with good specifications, competitive pricing without compromising on the reliability.

Research and Innovation: Continued investment in research and development
will lead to technological advancements, improved battery efficiency, longer ranges,
and faster charging times.

Battery Recycling and Disposal : Developing a sustainable system for battery
recycling and disposal is crucial to minimize environmental impact.

Skills Development and Training: Training programs for technicians,

engineers, and service personnel are essential to meet the demands of the evolving
BEV technology landscape.

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[Contact]

info-india@intage.com

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