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About 90% consumers in India willing to pay a premium for buying EV

“Consumers are willing to pay extra for an added value of being environmentally responsible.”

PTI | NEW DELHI |

With global electric vehicles (EVs) sales expected to boom in the next 12 months, nearly 90 per cent of consumers in India are willing to pay a premium for buying an EV, according to a survey by consultancy firm EY.
The EY Mobility Consumer Index (MCI), a survey of more than 9,000 respondents from 13 countries, including 1,000 respondents 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 concluded 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.
A majority of the respondents surveyed in India consider a driving range of 100 to 200 miles from a fully charged EV, EY said.
It further said, “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.”
Existing and future EV owners, who intend to buy a car, have a relatively higher preference for digital channels compared to the existing and future ICE owners.
Commenting on the findings, EY India Partner and Automotive Sector Leader Vinay Raghunath said, “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.”
He further said, “Consumers are willing to pay extra for an added value of being environmentally responsible.”
According to the survey, the top reason for buying an EV is environmental concern, with 97 per cent also stating that the COVID-19 pandemic has heightened awareness and concerns about environmental issues.
About 67per cent of those looking to buy an EV feel it is their responsibility to reduce their personal environmental impact, and 69 per cent feel buying an EV is one way to achieve this goal.
When it comes to charging, the survey found 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”.