Vanishing Vroom Vroom
In the Indian automotive industry, the surge of Electric Vehicles (EVs) has taken centre stage today, redefining mobility and sustainability. Even though the EV seems like a vehicle conjured by green activists in modern times, the first of its kind is attributed to Robert Anderson, a Scottish inventor who invented the first crude electric carriage around 1832-1839 in Scotland. We have come a long way since then, and as conscious citizens of an apparent near-apocalyptic world, electronic vehicles are increasingly preferred. Today, major automobile brands are boldly embracing EVs into their portfolios and launching innovative marketing campaigns that showcase cutting-edge technology and emphasise environmental benefits. But this electrifying wave has been blemished by concerns over battery crisis and scarcity of charging stations, among other challenges that raise questions about the long-term sustainability of EV production. Marketing Strategies for EV Growth of EV in India Opportunities & Challenges Role of Startups
Furthermore, the EV landscape in India is witnessing a surge of new entrants, with startups now focusing on mass production of two-wheeler EVs. Also, both emerging companies and established automobile giants are seen collaborating to drive innovation and affordability for consumers. Experts decode the marketing brilliance behind the rise of EVs, examining how brands are navigating consumer sentiments, challenging traditional norms, and strategically positioning themselves to capture the growing interest in electric mobility.
As electric vehicles are on the rise globally as well as in India, automobile brands have also amped up their marketing efforts to reshape consumer perceptions and accelerate the adoption of EVs. Last year, Tata Motors, the market leader in the EV segment opened India’s first EV experience store - TATA.ev, catering solely to EV customers, in the prominent auto hubs of Gurugram. The automobile giant walked into 2024 with the launch of its first pure EV – the Punch.ev, based on its advanced Pure EV architecture – acti.ev.
He also adds that EVs are on a definitive path to a carbon-free future. Commenting on the sustainability factor here, he says, “Sustainability remains a top priority for our EV owners, and the response to the stores has been phenomenal. Showroom walk-ins have seen a remarkable 2x increase, with visitors not only exploring our products but also viewing the stores as landmarks. We firmly believe that providing an exclusive retail experience for EV buyers is a pivotal step in expediting EV adoption across the country,” he says.
“In 2023, the ‘EVing’ campaign emphasized EVing is saving, living, and exploring, leveraging hyperlocal AI for personalized ads. Introducing Comet EV, India’s first smart EV, we targeted Gen Z and millennials with a no-nonsense car message through the ‘Cut The Crap’ campaign. These initiatives, from Benedict Cumberbatch to Comet EV, showcase our commitment to redefine the future of mobility and make EVs mainstream,” he says.
He further adds, “Our marketing strategy is focussed on communicating the desirability of Mercedes-Benz EVs. We communicate actively via our retail marketing and SM campaigns, the brand experience, the EV infrastructure, our largest OEM-backed fast-charging network and the hassle-free ownership that we support our EV customers with. We have been collaborating with partners like EvNNovator to amplify our EV charging network. There has been continuous investment in upgrading our retail and service network and making them future-ready for EV customers.”
“Awareness is what the current approach is. The more recharging stations we get, the more it will move down the funnel of marketing, however, I don’t see it moving out of awareness and brand building for another two to three years. This will mean impact properties across sports and entertainment will get the largest pie of the dollar spent,” he further elaborates.
From surging sales and burgeoning revenues to the dynamic expansion of the market and the arrival of innovative new models in the past few years, there’s no doubt that the electric revolution is shaping the future of mobility globally and in India.
Sharing further about Maruti Suzuki’s foray into the EV segment, he says, “We foresee the coexistence of various powertrain technologies well into the thirties to meet government-regulated emission norms. Our foray into the EV segment includes the launch of our first EV, the mid SUV EVX, scheduled for the financial year 2024-25. As part of our preparations, we are focusing on building a robust charging infrastructure ecosystem, recognizing its critical role in both customer convenience and satisfaction, and in overcoming a significant barrier to EV adoption in the country.”
Mishra notes that electric vehicle sales have witnessed a robust increase of 45 percent in 2023. Total EV registration figure in 2023 is just shy of 1.5 million units, significantly higher than 2022’s count of a little over 1 million units. The 2024 projections at the beginning of the year indicated potential sales volume surpassing 2 million units. In terms of segments, 2-wheelers accounted for the largest share at 56% of the total EVs registered in 2023, while 3-wheelers accounted for 38%. Electric passenger vehicles comprised 5%, while commercial vehicles held a minor fraction. The electric passenger 4W vehicle segment is dominated by Tata Motors at over 2/3rd the market share of sales.”
“Vahan data indicates that on a year-on-year basis, EV sales grew by 82 percent in March 2023 with 1,39,789 units sold in comparison to 77,128 EVs sold in March 2022. Overall sales grew by a whopping 157 percent, from 4,58,746 in FY2022 to 11,80,597 in FY2023.
In 2023, Tata Motors launched its Nexon EV facelift, MG Motors introduced its second EV in India – MG Comet, while the new entrant in the passenger vehicle market, Citroen, unveiled Citroen eC3 in the Indian market. 2023 also saw the launch of the Hyundai Ioniq 5 and Mahindra’s inaugural entry into the EV market with Mahindra XUV400. Among these, MG Comet is by far the most economical electric car available in India, while the Rolls-Royce Spectre is the most expensive one.
“Tata Motors has a clear commitment to EV and we are seeing Mahindra getting serious with scheduled launches in 2025. However, Tata Motors is leading the foray with a separate division and massive technology investments. We have already seen Nexon launch new variants and soon even Safari will be unveiled in EV. Tesla recently announced their India entry and BYD already is in India. Last year, the EV market grew at 40% but the base number is low and so the actual numbers are nowhere close to the regular vehicle sales in India but on track to grow at over 30% compounded up until 2030,” anticipates Sundaram.
“In FY2021, we sold 2,000 cars, surging to 19,000 in FY2022, and reaching 50,000 in FY 2023. With an exponential growth trend, and a maturing market, the preceding year (FY 2024) saw sales go over 73,000 units, constituting a significant portion of our business. Looking ahead, our aim is for EVs and Internal Combustion Engine (ICE) vehicles to be on par in volumes within Tata Motors by 2030, a strategic goal actively pursued. In light of EVs being an emerging category, we allocate approximately half of our budget to EV marketing efforts, despite the volume accounting for about 15%,” highlights Srivatsa.
Though there are a lot of promising opportunities for both brands and consumers alike in the EV sector, it also has some formidable challenges. Let’s find out how brands and EV manufacturers are navigating the opportunities and challenges in the sector.
According to Shashank Srivastava, “Acknowledging the challenges of pricing and charging infrastructure, we are actively working on both fronts. Investing significantly in battery localization, which accounts for nearly 50% of EV costs, we aim to enhance competitiveness in pricing. Our commitment extends to introducing six EV models across various segments by 2030-31, underscoring our dedication to shaping the future of mobility in India.”
“The good news is that the BEV transition in India has just begun, and it has a long journey ahead. This also means we have an immense opportunity to explore the market and introduce new technologies, new products, and services for our BEV customers. In some global markets, the level of penetration is higher due to many factors such as incentives and a more developed charging network. The charging infrastructure is rapidly growing in India and I’m confident so will the EV penetration,” shares Bennett.
While concerns persist regarding charging infrastructure, there is a notable buzz surrounding the advancement of solid-state batteries for Electric Vehicles (EVs). Presently, EVs utilize lithium-ion batteries, a technology developed in the 1990s and widely incorporated into smartphones and laptops. The ongoing testing of solid-state batteries by multiple automakers represents a next-generation technology that holds the potential to render EVs more affordable, efficient, and secure.
Today, startups in the EV segment are playing a transformative role, these innovative ventures are redefining sustainable mobility, energy infrastructure, commercial mobility, and battery management systems. On the financial front, the ride-hailing giant Ola Electric is gearing up for a groundbreaking move with its upcoming Initial Public Offering (IPO) in 2024. This signifies not only the growing confidence in the EV sector but also the potential for significant market capitalization in the years to come.
“Start-ups, particularly those in the electric vehicle (EV) sector, focus on the two-wheeler market due to its feasibility compared to developing global standard cars. While traditional giants like Tata and Mahindra can be considered start-ups in the EV category, their legacy provides a significant advantage for scalability. In contrast, newer entrants rely on advertising, primarily through out-of-home, radio, and digital channels. Additionally, Original Equipment Manufacturers (OEMs) and cab-hailing services in the EV start-up space adopt diverse spending strategies, including both B2B and B2C expenditures,” explains Sundaram.
“In a crowded market of EV 2-wheelers, our electric mobility company sets itself apart with a unique fusion of style, performance, and sustainability. Beyond selling vehicles, we redefine the riding experience by offering complimentary maintenance for the first 5 years, covering everything from the electric motor to tires, based on insights from 2-wheeler consumers. Our range on a single charge is competitive with top EV brands,” explains Joshi.
As Electric Vehicles firmly establish their presence, the intriguing prospect lies in the timeline for their gradual integration, eventually reaching a point where they partially replace traditional fuel-based vehicles and seamlessly transition into the automotive mainstream.
Tags : #e4m #ev #ElectricVehicles #carbonemission #environmentfriendly #globalwarming #EVIndia