Persistent concerns about extended charging times, infrastructure availability and safety of battery technology are deterring potential buyers, Deloitte research has found.
Deloitte's 2024 Global Automotive Consumer Survey shows that despite the higher costs associated with hybrid vehicles, more car buyers are choosing a hybrid over an electric vehicle (EV) for their next purchase. I am planning. The study identifies factors such as charging time, charging infrastructure availability, and battery technology safety concerns as key barriers to widespread adoption of battery electric vehicles.
According to the study, 36% of those surveyed in 2024 expressed a preference for a hybrid or plug-in hybrid electric vehicle (PHEV), compared to 32% in 2023. In contrast, only 10% of respondents expressed interest in purchasing BEVs. Additionally, there is a growing trend towards non-traditional engine vehicles, with 53% of respondents choosing hybrids over gasoline or diesel cars in 2024 and 49% in 2023.
Despite their higher price compared to EVs, hybrids are particularly preferred due to their perceived benefits. Rajeev Singh, partner and consumer industry leader at Deloitte Asia Pacific, explains, “People prefer hybrids over EVs because they provide a sense of security that EVs currently lack.” .
PHEVs utilize a battery to power an electric motor and traditional fuels such as gasoline or diesel to drive an internal combustion engine (ICE). These vehicles can be charged using wall outlets, charging equipment, ICE, and regenerative braking.
“In markets like India where charging infrastructure is still developing, the government should consider encouraging PHEVs. PHEVs offer similar benefits to EVs: they can be charged at home and if the battery dies, there is an ICE. There is also an option to switch to mode,” Singh suggests.
The survey also found that those considering purchasing an EV are reluctant to pay significantly more than an ICE vehicle. Only 2% of respondents planning to purchase an EV are willing to pay significant insurance premiums, compared to 27% of respondents planning to purchase an ICE vehicle. He is willing to spend between Rs 1.5 million and Rs 2.5 million.
“In India, buyers are showing interest in green technology, but are reluctant to pay a premium when purchasing,” Singh points out. Subsidies therefore play an important role in bridging this gap. Singh emphasized the importance of maintaining incentives for EV manufacturers in India until EV penetration reaches 20%.
