Why Indian Customers Prefer Fuel Vehicles Over Electric Vehicles?

Despite a market size of 205.58 billion U.S. dollars in 2022, only 4.77% of Indian consumers use EVs compared to petrol-based vehicles. However, this does not mean that the EV industry is not growing in India. The point is that people in India still prefer petrol-based vehicles.

Why do Indian customers prefer fuel vehicles over electric vehicles?

1) Uncertainty about Range- People are still uncertain about the range of their electric vehicles and find it inconvenient to look for charging stations on long trips since it is difficult to find any nearby.

2) lack of charging ports-  People still have to travel long distances in search of charging ports for their vehicles, but the government is working to increase the number of charging ports.

3) Unaware- Most customers are unaware of the advantages of EVs, which is why they opt for fuel-based vehicles.

4) Expensive repair cost- EVs require less maintenance compared to fuel-based vehicles, but repairing them can be more expensive due to the specialized components and technology.

5) Affordability challenge for consumers- Fuel vehicles are less expensive than EVs. Companies like Tesla and Tata Motors are working to reduce the cost of vehicles to make them more affordable, but they are still more expensive than fuel vehicles.

These are the major reasons why it is still difficult for EV companies to enter the Indian market. Some sources claim that the Indian market is expected to grow by 49% between 2022 and 2030, and is projected to create 5 crore direct and indirect jobs. However, it is still too early to accurately predict the extent of growth and job creation in this sector.

Thanks for reading.

Blog by Naman Mathur