Understanding Consumer Perspective: Factors Influencing The Purchase Of Electric Two-Wheelers In India
What exactly is driving Indian consumers' appeal to these environmentally friendly rides? The answer lies in three key factors: reliability, sustainability, and affordability.
By Sushant Kumar
Electric two-wheelers are fast gaining acceptance in India, plying on busy roads. The amalgamation of global environmental consciousness and hi-tech progress has sparked a growing movement that has seized the world's attention. India has enthusiastically embraced this trend, leading to a noteworthy surge in the electric two-wheeler market.
Going by the numbers, in the fiscal year ending in 2022, a striking 726,976 battery-powered two-wheelers were sold, representing a three-fold rise from the 232,000 units sold the previous year. Projections indicate that by 2030, the number of e-bikes and e-scooters on Indian roads will reach a staggering 22 million.
What exactly is driving Indian consumers' appeal to these environmentally friendly rides? The answer lies in three key factors: reliability, sustainability, and affordability. Let us explore each of these factors in more detail.
Reliability
One of the common concerns associated with electric vehicles is range anxiety—the fear of running out of battery power during a ride. However, this is a myth, and this anxiety is becoming less relevant in India due to the average daily travel distance. According to a report by Niti Aayog, an average person travels around 24 to 25 kilometres per day, both in rural and urban areas. For regular commuting needs, the range provided by electric two-wheelers is enough. However, having options for longer-range models can address the occasional need for extended travel.
Next, brand recognition and trust play a crucial role in consumers' decision-making processes. In the electric two-wheeler industry, no specific brand has yet established a dominant position. Consumers are still exploring and evaluating different brands to determine their reliability, durability, and after-sales service. This offers a prospect for manufacturers to establish themselves by unswervingly delivering quality products and excellent customer support.
Additionally, consumers also contemplate the build quality of electric two-wheelers. Sturdy construction and reliable components underwrite the overall reliability and longevity of the vehicle. A well-built electric two-wheeler can endure the demands of daily commuting and offer a comfortable and safe riding experience.
Moreover, electric two-wheelers should be able to handle diverse terrains, including tough terrains like hilly regions. Factors like gradability (the ability to climb slopes) are important for consumers residing in areas with challenging topography. Ensuring that electric two-wheelers perform well in various conditions enhances their appeal and widens their consumer base.
Sustainability
A vital aspect influencing the buying decision for electric two-wheelers is the availability of a service centre network and constant support from the company. Consumers prefer manufacturers that offer a strong service network, ensuring quick and efficient maintenance and repairs. Lack of infrastructure and skilled manpower may hamper the widespread adoption of electric vehicles, but the advantage of electric two-wheelers is their ease of charging. Manufacturers need to focus on establishing a reliable service network to instil confidence in consumers.
Besides, while charging infrastructure is frequently a concern for electric vehicle adoption, it is less applicable for electric two-wheelers. These vehicles can be charged at home or any convenient location, making them practical for the Indian market. However, the availability of charging stations can still be a positive factor, especially for 2-wheeler electric scooter users who are in the business of last-mile delivery, bike rentals & bike taxis. Expanding the charging infrastructure network would further support the adoption of electric two-wheelers.
Affordability
Electric two-wheelers need to strike a perfect balance between product price and features to ensure affordability for mass adoption. The price point plays a significant role in the purchasing decision, and consumers expect a reasonable cost for the benefits provided. Electric two-wheelers priced within the range of 1 lakh rupees are more likely to attract a larger customer base.
Furthermore, affordability can be given an added boost through easy EMI options and flexible financing plans. Providing multiple financing options through different mediums allows consumers to choose the most suitable payment method according to their financial capabilities.
Understanding the consumer perspective is crucial for the successful adoption of electric two-wheelers in India. Factors like reliability, sustainability, and affordability heavily influence the purchase decisions of Indian consumers. By understanding and addressing these factors, manufacturers can capitalise on the growing demand for electric two-wheelers in India and contribute to a cleaner and greener transportation ecosystem.
(The author is the Founder & Managing Director at AMO Mobility)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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