New Delhi: Electric Vehicles as a category has been grabbing headlines through the last 12-18 months, whether it is the public policy, the rise of fuel prices, new brands being launched and the overall ecosystem growing month on month. The most important factor is growing consumer awareness and acceptance.
According to the SMEV report FY21, the combined yearly sale of battery electric vehicles and plug-in hybrid electric vehicles crossed the two-million-vehicle record for the first time in the decade. The growth would have furthered but was majorly clouded by financial ambiguity and a shift in consumer priorities, with the pandemic impact.
Nonetheless, that have not slowed investor interest or OEM focus in the category. We see continued development and investment in the new vehicles and charging infrastructure. Consumer stances have developed with backing from pop culture and made EV aspirational as well as practical. Topically, electric vehicles are a viable alternative in India, especially in two-wheelers, which is striving to lessen their reliance on oil derivatives and reduce air pollution.
The shift towards EV is certain in India. The acceptability and popularity will bolster once the infrastructure evolves further. With top Indian and international auto companies entering the Indian EV market, we can be sure of generating more regional growth and the creation of a robust EV sector. What is important is how the ease of consumer adoption is created. Currently, there remains a gap when it comes to catering to the consumer’s needs whether it is due to limited selection, availability and information and ease of ownership through limited finance options.
Need for a marketplace to fuel demand:
India is the largest growth opportunity for the EV category. With evolving uses cases like last-mile delivery for e-commerce companies like Amazon and companies like Ola launching its own EV and evolution of low speed and high-speed category in two-wheelers the market is buzzing. Thus, also creating intrigue in the mind of the likely consumer. The relative newness of the segment demands that it has a platform and presence in the online ecosystem which would work towards information dissemination, generating interest, provide the Digital First generation with expertise and guidance.
They would need the right support to zero down on a purchase, all from the comfort of their homes. Such a platform would usher in faster acceptance for EV and a multi-brand marketplace is the best way to capture attention and interest. Customers are now used to comparing and engaging in deep research before locking in a purchase. The EV segment still has a gap and it’s necessary to address how the potential customers can access different brands and make an informed choice. With growing concern about public places, the traditional buying process itself is getting disrupted. An experiential online marketplace seems the best solution.
The online marketplace should typically extend 3 basic premises:
Experience
The process of purchasing an object, be it online or offline, asks the retailer to provide the customers with a seamless immersive experience that would enable them to make informed choices with extensive guidance from the category experts. The EV experts would handhold the clientele with unbiased advice, understand individual use cases and find the vehicle at the best price and offer possible. A structured follow-up and assistance after the purchase is done would help build the customer confidence even further.
Variety
The EV marketplace would offer multi-brand, similar to other online shopping portals. It should host brands that would cater to all factors ranging from EVs of the different price brackets, Battery range, Low speed or high speed, possible customization and thus encourage adoption of alternative methods of transportation instead of the traditional fuel-based vehicles.
Ease of Purchase & Ownership
Being a new category, consumer needs lowest barriers to purchase. Finance plays a key role in the same. Being online, the consumer is open to research and avail of all available options and pick the one that suits him or her the best. It is thus not dependent on what a typical dealer in a brick-and-mortar store would open. Newer ownership offers like exchange a petrol vehicle and upgrade to an EV or taking an E2W (Electric 2-Wheeler) on a subscription for 6 months are going to drive this adoption.
The pandemic has created shifts where the importance of personal mobility over shared is garnering much attention. This coupled with the outlook to preserve nature and the desire to lessen the contribution to carbon footprint is there in the back of many minds, which the EV segment can capitalize on. A retail marketplace with a profusion of choices can give the adoption of eco-friendly EVs a boost and also help the consumers to make choices after they compare & contrast and understand their requirements instead of investing in the most expensive or easily available EV.
With a heavy growth forecasted throughout South Asia, the EV manufacturers need such platforms that not only helps the manufacturers grow their revenue channels but also the consumers to understand the product they are buying just like they do when investing in any other fuel-based vehicle.