Abstract:
In recent years there has been a tremendous drive toward electrification of traditionally internal combustion
vehicles, especially in passenger automobile industry. The shift towards electric mobility in certain countries
occurred as a policy driven move whereas in other places it was a consumer driven move. Despite the driver,
there are key considerations that prohibit any new technology from adoption, the most intuitive of such barrier
would be the economic cost of the new technology along with the perception of the consumers (present and
prospective) towards its utility. Given the Government of India’s ambitious 2032 target of prohibiting sales
internal combustion driven vehicles, the study estimates the cost difference between electric vehicles and
internal combustion vehicles across various vehicle category as well as perception of the population in urban
centres of India about these vehicles. The study found that presently unlike the industry rhetoric, electric
vehicles aren’t cost competitive across all segments, despite being in few, more importantly the population’s
perception of cost is not in sync with the realities. Apart from cost perception the respondents also viewed
electric vehicles less favourably for performance, ease of use and other vehicular parameters. On the basis of
these findings a new policy design was suggested, to be operated alongside the present policies to achieve
the 2032 target.
