Nearly 90% Indian consumers ready to pay a premium for buying EV: Survey

As the electric vehicle sales are expected to grow globally within the next year, nearly 90 per cent Indian consumers are willing to purchase a battery-powered vehicle for a premium amount, as per a survey conducted by consultancy firm EY.

The survey that that involved 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. Among Indian car buyers, three in 10 people said they would prefer buying an electric or hydrogen vehicle.

Majority of respondents from India also said that they expect a driving range of 100 to 200 miles from a fully charged electric vehicle. The survey also gathered that nearly 90 per cent of consumers in India are willing to pay a premium for buying an EV. "Consumers are willing to pay extra for an added value of being environmentally responsible," said Vinay Raghunath, EY India Partner and Automotive Sector Leader.

Another finding is that existing and future EV owners prefer using digital channels to buy a car, a higher percentage as compared to the existing and future combustion-engine car owners.

The survey also stated that the top reason to buy an EV is environmental concern, with 97 per cent respondents stating that the Covid-19 pandemic has heightened awareness and concerns about environmental issues. About 67 per cent of people looking to buy an EV also feel that it is their responsibility to reduce their personal environmental impact while 69 per cent feel that buying an EV is one way to achieve this goal.

Commenting on the findings, Raghunath added, "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."

(With inputs from PTI)