Understanding Consumer of Electric Vehicles and key Emerging Markets

Understanding Consumer of Electric Vehicles and key Emerging Markets

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Understanding Consumer of Electric Vehicles and key Emerging Markets

Electric Vehicle is a new buzz word globally. It is widely noticed that preference of people is shifting at a much faster pace towards Electric Vehicles across the globe. As per the leading market reports, in the year 2021, 5.6 million Electric Vehicles were sold already, which is 83% higher than in the year 2020 and 168% increase over 2019 sales figures for Electric Vehicles. It is expected to reach 7.5 million by end of the year 2022. China leads the Electric Vehicle market and has almost 70% of global market sales followed by Europe and the USA while rest of the world holds a small portion of Electric Vehicle sales.

Emerging Market

India is already one of the largest markets in the world for automobiles. However, in the Electric Vehicle space it has a lot to do to mark its name in the top 10 list. India is still way behind in the league of EV space; however, it has progressed well in the past decade. Global electric vehicle sales kept rising at the pace of 30% every year for the past decade.

Consumer preference and interest is a very big factor in the growth of Electric Vehicle sales in any country along with other factors like Price, Durability, Service and other benefits. 

List of countries with the highest share of plug-in electric vehicles in new passenger car sales in first half of 2021:
  1. Norway (82.7%)
  2. Iceland (55.6%)
  3. Sweden (39.9%)
  4. Finland (28.3%)
  5. Denmark (26.8%)
  6. Germany (22.1%)
  7. Netherlands (19.7%)
  8. Luxembourg (18.3%)
  9. Switzerland (18.2%)
  10. Austria (17.2%)
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China leads in terms of unit sales but, fell out of the top 10 list accounting for just 6.2% electric passenger car sales in the country.  

Consumer perception about viability

Globally, Government bodies took various initiatives and announced benefits to automobile manufacturers to promote the production of Electric Vehicles in the country. Similarly various offers and benefits were also provided to the buyers of the Electric Passenger vehicles to boost the sales. This is definitely a win-win situation for the global brands and consumers. Government issued favorable policies that also led to faster growth for the Electric Vehicle industry and consumers started accepting it widely.

Consumers decide to buy after knowing completely about the product and after reviewing the feedback of existing customers. Consumers also consider the benefit of using EV and ease of use. Electric charging stations availability is the key consideration for buying EV passenger vehicles.

For any brand it is important to understand consumer sentiments and consumer behavior pattern before launching a new product in the market. A complete study of ground realities and requirements of automobile industry is important to ensure a smooth shift to Electric Vehicles.

As per the reports, consumers are very optimistic in the below-mentioned countries about Electric Vehicles:

Distance and Charging Stations

Electric Vehicles are known to be covering less distance in a single charge and this holds EVs less viable as a mode of transportation. However, with this limitation as well we see a drastic demand in EVs year-on-year and the sales figures across the globe are evident. So, it can also be considered that charging station and distance covered is not a barrier to the growth or demand of EVs. Urban consumers are found satisfied with the range provided by the EVs manufacturers for their consumer cars.

People across the globe are using private charging stations as against public charging stations for charging their EVs. There might be a number of reasons for the same, however dedicating time for another location for charging battery is a big concern for the EV users as of now.

Electric vehicles are definitely the future

Optimistic! This is what everyone feels for EVs today. Most of the consumer sentiments are with the perspective of buying EV vehicles and it will further move upwards. The survey conducted for EVs and their use globally puts light on various aspects like consumer mindset, features, benefits, price, model, etc. Such studies will help in identifying various factors to boost the demand and sales of the EVs. Many consumers are of the notion that EVs will replace mainstream sooner than a decade. Emerging countries like India have a lot of opportunities for EVs and a lot more aggressive initiatives to increase awareness and sales should be the major focus by the automobile brands across the globe.

People across the globe are using private charging stations as against public charging stations for charging their EVs. There might be a number of reasons for the same, however dedicating time for another location for charging battery is a big concern for the EV users as of now.

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Next 10 years will see a drastic change in the acceptance of the EVs in global markets majorly focusing on emerging markets like India, China, and USA that have a lot of opportunities to increase the market share of EVs. Automobile Manufacturers should take proper understanding about consumer sentiments, market insights and other factors that can boost the EV market in these countries.