By Anirudh Ravi Narayanan, CEO & Co-Founder, Boom Motors
2021 was a tipping point year for EVs. Few things happened which moved EVs from a niche to a mass segment. First, the Central Government increased the incentive for FAME subsidy from Rs. 10k per kWh to Rs. 15k per kWh, significantly reducing vehicle pricing of most vehicles by Rs. 10-20k making them more economical. In addition to this, various state governments offer incentives for EV purchases and/or road tax and registration fee waivers which made EV on-road price similar to petrol vehicles in most cases.
Second, petrol prices went beyond the psychological barrier of Rs. 100 per litre where customers started feeling the pinch. In addition, the general consumer’s mindset has become that petrol prices will only continue to rise in the future – it doesn’t appear to ever come back down and stay down. The frustration of customers has turned them to other options.
Third, EV players made more noise in the media in 2021 than ever before. Due to the combination of EVs getting more attention due to the government policies, the entrance of new players, increased advertising spending by existing players, and higher amount of coverage by news outlets starting bringing EVs to the awareness of the general public. Just as petrol prices started to frustrate them, a solution seemed to be appearing in front of them.
Because of the combination of these events, the demand for EVs in 2021 completely went through the roof. All EV showrooms are running empty whereas petrol vehicle manufactures showrooms are sitting with inventory for 60+ days in many cases. When the public finally came out and demanded for electric vehicles, the manufacturers have so far fallen short and supply is just not able to keep up with demand. Many manufacturers have announced an increase in investments and setting up of additional capacity. In addition, the incumbent ICE vehicle OEMs are all getting into the space in a bigger way. 2022, is therefore, is going to be the year that sees the biggest jump in EV sales ever.
However, that makes it equally important that EV manufacturers are able to win over the initial set of customers. As EVs go from early adopters to mass market – expectations will increase for better performance, quality and reliability. No longer will flimsy Chinese import scooters hold a significant market share in India. Charging infrastructure will start becoming a problem as more and more vehicles enter the road and as OEMs are not able to align on standards. Many other infrastructural problems may start to arise including service infrastructure for vehicles. If all of these are not addressed, the customers in 2022 whose benchmark is ICE vehicles, will be left with a sour taste of EVs.
It will therefore be very prudent for the EV manufacturers that they are able to ensure a high level of customer satisfaction and NPS with their customers to set up our country for even more adoption in the future.
