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t is a part of EV Next’s EV Perspectives.
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This post is part of a series titled ” EVolution or rEVolution? Strategizing for EV Growth in India” from EV Next Perspectives. See all posts for this series from here. See the previous post Understanding The PUSH & PULL for the Indian EV Industry
The Needs & Drivers of the Indian EV Market
What are the key needs and drives that can propel the Indian electric vehicle market? This post does a review and analysis.
Market Needs & Pain Points
| Product Segment | Market Segment |
Dominant Needs/Pain Points (in descending order in case of more than one need)
|
|
Bicycles
|
Mass Market | Price of vehicle |
| Premium Market |
Cool factor
Performance Health & wellness |
|
| Scooters | Predominantly mass market | Price of vehicle Running cost Performance |
|
Motorbikes
|
Mass Market |
Price of vehicle
Running cost
Performance
|
| Premium Market |
“Cool” factor
Performance
|
|
|
3 Wheelers
|
Passenger Market (Autorickshaws) |
Price of vehicle
Running cost
Performance
|
| Commercial Market (Tempos etc.) |
Price of vehicle
Performance
Running cost
|
|
|
Cars (including vans and other car variants)
|
Small Car | Price of vehicle Running cost Performance |
| Large Car |
Performance
Price of Vehicle
Running cost
|
|
| Premium Car | Cool factor Performance |
|
|
Commercial Vehicles
|
Small trucks |
Price of vehicle
Running cost
Performance
|
| Lorries | Price of vehicle Performance Running cost |
|
| Large trucks | Price of vehicle Performance Running cost |
|
|
Buses
|
Public transport – Local | Price of vehicle Running cost Performance |
| Public transport – Long Distance | Price of vehicle Performance Running cost |
|
| Private transport (usually long distance, outside of corporate fleet) | Price of vehicle Performance Running cost |
|
| Corporate fleet | Price of vehicle Running cost Performance |
|
|
Off-road vehicles
|
All terrain commercial vehicles | Performance |
| Agricultural vehicles | Price of vehicle Performance |
|
| Defense vehicles | Performance | |
|
Specialty vehicles
|
Emergency (ambulance, fire engine…) | Custom Features Performance |
| Non-emergency (snow ploughs, recovery vans) | Custom Features Performance |
Notes
- Performance includes quality of driving, range per full fueling, maintenance requirements and refueling time
- Running cost is a function of both mileage and costs for repair and maintenance
A summary of the above needs and pain points
| Need or Pain Point | Relevant Market Segments |
| Price of vehicle | The most dominant need for most non-premium market segments |
| Running cost | The second most dominant need for most consumer mass market segments |
| Performance | An important need for premium, specialty and long distance vehicle segments |
| Custom features | Important only for select vehicle types |
| Cool factor ( “go green”) | Important only for premium segments |
The above summary table is the starting point to devise a strategy that leverages the PULL.
Let’s start off by evaluating the extent to which these needs or pain points can be satisfied by EVs currently.
| Need or Pain Point | Relevant Market Segments |
| Price of vehicle | No |
| Running cost | Yes |
| Performance |
|
| Custom features | No |
| Cool factor | Yes |
EVs – Where do they do well?
- EVs fully satisfy two of the four key needs or pain points quite well – Running cost and the Cool Factor
- EVs partially satisfy the “Performance” needs
EVs – Where do they do poorly?
- It is on Price that EVs face their biggest challenge. As is well known, EVs cost between 30% – 100% higher than their conventional equivalents. The main reason for the high cost is the battery. Which is why, while vehicles using Lead Acid batteries cost perhaps 25-30% higher, vehicles using Li-ion batteries could cost 50% or higher. In fact, electric buses (almost all of which run on Li-ion batteries), cost over 100% more than their fossil fuel equivalents, only due to the extensive requirement of such expensive batteries.
Price and performance aspects where EVs face challenges are unlikely to disappear anytime soon. An effective short and medium term strategy should hence build on the current strengths that EVs have, and mitigate the negative effects of weakness and threats.
This post is part of a series titled “EVolution or rEVolution? Strategizing for EV Growth in India” from EV Next Perspectives. See all posts for this series from here. See next post Constraints, Challenges, and Avenues for EV Adoption in India
The complete list of bogs in the series-
- Highlights of the Indian EV Industry, an EAI Perspective
- Understanding The PUSH & PULL for the Indian EV Industry
- The Needs & Drivers of the Indian EV Market
- Constraints, Challenges and Avenues for EV Adoption in India
- Strategizing for India’s EV Growth
- EV Next’s Strategy Recommendation for India’s EV Growth – Summary & Analysis
- India’s EV Growth – EVolution or rEVolution? – the conclusion
Read more of our perspectives and opinions on: Indian EV Market Intelligence | Indian EV Strategy | Indian EV Policies | R&D and Innovation | Supply Chain | Indian EV Manufacturers | Adoption Trends | Electric Vehicle Impact | Indian EV Industry Highlights | Know how of Indian Emobility | Needs & Drivers | Constraints for EV adoption | Growth Strategies | Recommendations |
Know more on how EV Next can assist your business in your strategy for the e-mobility and electric vehicles sectors, Here
Wish to know everything about India’s EV market from one place? Check out the India EV Expert Guide, an 800 page comprehensive guide to the Indian EV market. Here
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