Page 8 - ITLN November - December 2024

Cover Story
Automotive
Logistics

Profiling Future activity type*
India’s 55+ 9% 74%
vehicle
buyers 45-54 22% 22% 22%

58% 35-44 23% Buy a new car Buy a used car Buy a certified
pre-owned car
Of Indians plan to
buy or lease any 10% 17%
car in the next 12 25-34 26%
months 48%

83%
18-24 20% Our team of solutions experts are
ENGINEERING YOUR
Own 1+ car Do not currently own a car Nat Rep
Profiles+ India (urban) 2024-08-25, group: Buy any car, n>14,300
*Questions allow multiple selections.

electrification by FY31, with scooters survey showing that over half of Indians
expected to lead this trend at over are inclined to buy EVs as their next COMPETITIVE EDGE
60% due to competitive pricing and cars. The survey identified three main
suitability for short commutes. benefits of EVs: their environmental
Ashish Pathak, Global Product impact, lower ownership costs, and
Director, Digital & Supply Chain ease of driving. Kaur noted that EVs by improving order fulfillment operations, revolutionizing supply chain networks
Practice at Boston Consulting Group have fewer moving parts and are 70% to and increasing productivity and ROI with advanced automation.
(BCG), spoke about EV two-wheelers' 85% more efficient than diesel vehicles,
role in the growing e-commerce and resulting in lower operating and
intra-city delivery markets, noting maintenance costs.
their 100-kilometre range makes Pathak from BCG highlighted that
them ideal for urban use. Further, commercial vehicles are a promising
Harsimran Kaur, Researcher at ICCT area for EV innovation due to fewer
(The International Council on Clean size and design constraints, allowing
Transportation), emphasised corporate In India, EV adoption for better integration of electric
adoption, mentioning that companies for passenger cars often powertrains. He pointed out that these
like Zomato and Flipkart are at the hinges on peer influence vehicles also have lower maintenance
forefront of corporate electric fleet costs due to their simpler mechanics.
commitments in India. The country also and word of mouth. While global automakers are investing
leads in new corporate EV deployments, Ashish Pathak heavily in this area, progress in
and initiatives for electric buses have Boston Consulting Group (BCG) India is slower, with companies like
cut operational costs by 23%-27% Ashok Leyland exploring both EV
compared to diesel buses. and hydrogen fuel technologies for
In contrast, motorcycle adoption Talking about EV adoption trends, commercial vehicles.
is expected to grow slowly, with high Thakkar mentioned he is also observing There are significant opportunities
single-digit penetration by FY31, reliant a lot of first-time buyers looking to and challenges associated with the
on affordable options from established buy EVs. So, EVs are no longer just adoption of EVs in India. While there
brands. Meanwhile, a YouGov study secondary city cars; they are also appear to be no inherent disadvantages
(India auto rankings 2024), conducted becoming the primary car for many new for consumers, a major barrier
in August 2024 revealed that 58% of car buyers in India. This view was not remains the inadequate quality and
Indians plan to buy or lease a car in the only agreed by many sector experts but insufficient charging infrastructure
next 12 months, with 41% considering also backed by consumer surveys. network. The McKinsey survey shows FOR MORE ABOUT OUR SOLUTIONS VISIT
EVs, signalling a shift towards In a discussion about India's shift over 75% of consumers feel India lacks
electrification in the automotive sector. to EVs, Kaur referenced a McKinsey adequate charging points. BASTIANSOLUTIONS.COM
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November - December 2024 www.itln.in