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.
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.
“EVs are rapidly gaining traction in India, driven by economic advantages, shifting consumer mindsets towards eco-friendly vehicles, and increased government support. The current penetration rate surpassed 6% in 2023, compared to around 1.75% in 2021, with expectations of further growth as EV technology evolves and infrastructure support expands. Government initiatives, electrification focus at both central and state levels, increasing charging stations, declining battery costs, and new model development will sustain EV demand in 2024,” affirms Aditi Mishra, CEO, Lodestar UM.
Marketing Strategies for EV
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.
Commenting on the strategic idea behind the experience store, Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd., shares, “We’ve always emphasized the distinct needs of EV consumers who seek a unique customer experience, from the initial purchase to ownership. The ownership experience for EV buyers is akin to purchasing a tech gadget rather than a conventional automotive product. This philosophy guided the creation of the new EV stores in Gurgaon, a pioneering concept in the country. Soon, these stores will extend their footprint nationwide, embodying the principles of community, technology, and sustainability. The stores integrate sustainable practices, featuring green areas and locally sourced materials.”
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.
Udit Malhotra, Head of Marketing, Morris Garages India shares that MG Motors sustainability journey commenced with ZS EV, launching ‘Change What You Can’ with actor Benedict Cumberbatch. He says, “Though still emerging, MG’s commitment to India’s EV landscape began with ZS EV, the nation’s first electric internet SUV. Recognizing the impact of factors like infrastructure and education on EV penetration, we introduced Avira during ZS EV’s launch to actively educate consumers. Addressing limited accessibility issues, we emphasize the importance of infrastructure development and consumer education for EV penetration. Our marketing focus revolves around dispelling myths and educating consumers, highlighting that EVs are not just the future but are already shaping the present.”
“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.
Elaborating on the strategies and initiatives undertaken by luxury car-maker, Mercedes Benz India, Lance Bennett, Vice-President, Sales & Marketing, Mercedes-Benz India shares, “We rolled out an innovative ‘Sustainable Fest’ in 2023 with our Franchise Partners, underlining our core belief ‘there is no luxury without sustainability’. The objective of this campaign was to support faster adoption of BEVs among customers by raising awareness about the use of BEVs, and their ownership benefits across markets. We also supported customers with a one-time Sustainability Loyalty Bonus, waiving off half the road tax in certain select states where Road Tax applies to BEVs etc. This initiative has certainly resulted in higher interest and awareness amongst our potential customers.”
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.”
“We have already seen both Mahindra and Tata go big during impact property events like the World Cup, and the IPL, upwards of 100cr. So, that is only going to be maintained by auto manufacturers, given the pressure of reducing carbon emission.” explains Rammohan Sundaram, President – Integrated Media, DDB Mudra Group while adding that wherever possible, oil will be replaced by EV globally and that will continue because of the global commitment to the cause of protecting planet Earth.
“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.
Growth of EV in India
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.
“EV is of course a powertrain type. Its penetration stands at approximately 2.2% in FY23 -24, projecting a range of 18 to 20% by 2030. In terms of Maruti Suzuki’s powertrain, we envision 15% of our fleet to be EVs by 2030, with 25% comprising hybrids, and the remainder utilizing CNG, biogas, flex fuel, and other technologies,” shares Shashank Srivastava, Member Executive Committee, Maruti Suzuki.
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.
The India electric vehicle market size is projected to grow from USD 3.21 billion in 2022 to USD 113.99 billion in 2029, growing at a compound annual growth rate of 66.52 per cent, according to a report by Fortune Business Insights. Among two-wheelers, four companies—Ola Electric, TVS Motor, Bajaj Auto and Ather accounted for 77% of the 74,261 e-two-wheelers sold in India,” shares Dinesh Rathod, CEO, Madison Media Omega.
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.
Opportunities & Challenges
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.
“The demand for Electric Vehicles is on the rise in India. Factors such as high fuel prices, the eco-friendly and sustainable nature of electric vehicles, among others, are influencing the changing mindset of Indian consumers,” emphasizes Sagar Joshi, Founder & CEO, KICK-EV. He mentions that the Indian government’s push for up to 70% of vehicles to be electric by 2030 aligns with the growing demand. “With infrastructure developments gradually taking shape, this presents an opportune time for consumers to consider electric vehicles for their daily commute,” he adds.
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.
“The future surely looks exciting. We see emerging technologies, including solid-state batteries, as pivotal in shaping the electric vehicle landscape in India. Vegh is actually at the forefront of this change. We’re actively investing in R&D for battery technology, motor systems, and vehicle engineering. Simultaneously, we aim to expand our manufacturing capabilities, and invest in automation, workforce training, and quality control processes to meet escalating demand while upholding stringent quality standards,” asserts Pragya Goyal, CEO & Co-Founder of Vegh Automobiles.
Role of Startups
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.
Anirudh Arun, Co-Founder & CEO of BluSmart Fleet, India’s first EV ride-hailing company shares that BluSmart currently operates in Delhi NCR & Bengaluru, comprising 45% of the Indian ride-hailing market. “Recognizing the imperative shift to EVs, we aim to disrupt public transportation by enhancing the mobility ecosystem with a seamless customer experience while prioritizing emissions reduction. Our startup, founded in 2019, has garnered over 3.5 million users, completing more than 14.9 million electric trips so far, indicating a growing openness among Indian consumers to adopt electric mobility. A unique feature, the ‘CO2 Tracker’ in the app, notifies users about the CO2 emissions saved after each ride. In alignment with our vision of decarbonising mobility at scale, we have saved 35.7 million kgs of CO2 emissions while covering over 492 million electric kilometres."
Dinesh Arjun- Co-founder and CEO of Raptee Energy emphasises that as the sole high-voltage drivetrain electric two-wheeler (e2W), Raptee outperforms internal combustion engine (ICE) counterparts. “Our innovative approach taps into existing public charging infrastructure for electric four-wheelers (e4W) using the CCS2 charging standard, ensuring a seamless experience for extended journeys in electric mobility. In our phased expansion plan, we’ll initially launch physical stores in Chennai and Bangalore, with plans to scale based on learnings. Our experience centres that are designed around the brand story, immerse consumers in our brand experience during interactions online or offline,” he shares.
“Hala Mobility operates a diverse electric mobility platform, ensuring affordability through a competitive pricing model for shared electric vehicles. Strategic partnerships, economies of scale, and operational efficiency contribute to maintaining competitive pricing. Collaborations with government agencies and marketing initiatives enhance accessibility, emphasizing the benefits of electric mobility,” shares Srikanth Reddy, Founder & CEO of Hala Mobility India. “Our marketing efforts include digital campaigns, university collaborations, and community engagement programmes. Expanding our market presence involves partnerships with city authorities, real estate developers, and businesses, integrating our services into urban life. Continuous innovation, including new electric vehicle models and mobile app enhancements, drives sustained growth and user retention,” he adds.
SKIL Cabs that targets the corporate sector aims to enhance market presence through initiatives such as expanding to new cities, improving online tools, and fostering strategic partnerships. Vikash Kejriwal, COO of SKIL Cabs states, “These efforts contribute to our sustained growth in the electric mobility sector. Committed to adapting to technological advancements, we focus on staying at the forefront of innovation to provide cutting-edge electric mobility solutions aligned with the evolving industry landscape.”
“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.
Dr. Sudhir Mehta, Founder & Chairman of EKA Mobility & Pinnacle Industries Ltd., which is an EV tech company, states, “We target a broad market in need of diverse mobility solutions, reflected in our product range spanning small trucks to buses for both passenger and goods transport. Our current emphasis is on buses, aiming to save one hour per person in daily commuting, a substantial national benefit with zero-emission vehicles. In goods transport, we focus on the 1.5-ton payload category, catering to various needs like garbage collection, e-commerce deliveries, courier services, and fleet operations. With rising diesel costs and evolving battery technology, major segments, especially public transportation, e-commerce deliveries, and long-distance coaches, are expected to shift towards electric vehicles.”
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.
