Electric Mobility in India: Understanding Adoption, Sustainability & Key Trends
Vikram Pawah is the President of BMW Group India, overseeing the company’s operations and growth in the Indian market. With extensive experience and a strong background in the automotive industry, Pawah plays a key role in expanding BMW’s presence in India. Before joining BMW, he held leadership positions at other major automotive companies. He holds a bachelor’s degree from Delhi University and an MBA from Victoria University, Melbourne.
Lately, there has been a rise in adoption of sustainable mobility. Several factors have played a key role in driving the change towards sustainable mobility. Today, climate neutrality has touched people’s lives, united them to mobilise resources to make a difference. Individuals are now increasingly environment conscious and want to make a contribution in reducing carbon footprint. When great product attributes are met with green solutions, there is an even more attractive proposition. Young achievers are especially conscious towards making sustainable choices when it comes to mobility solutions and are actively shaping the demand for electric luxury car market in India.
Growth Outlook for Sustainable Mobility
The Indian luxury market is still at a nascent stage but has immense potential with population of over a billion. The customer base has evolved tremendously in the last decade. Apart from traditionally wealthy families, emergence of a new group of achievers in India with a global outlook prefer to indulge in luxury lifestyle. Also, since the pandemic, there is a greater realization among people to live life to the fullest and enjoy the best things. Personal mobility is on the rise. Within this setting, there is an increased realisation of protecting environment that is leading consumers to gravitate towards zero emission vehicles. Electric vehicles (EVs) are not only environment friendly but also practical in terms of usage and cost savings. There is immense opportunity and headroom to grow and the story of Indian automobile growth in this decade will be transformational.
EVs Viability for Indian consumers
Absolutely. EV usage is perfectly suited for Indian requirements. Insights from 6.4 million kilometers driven by BMW and MINI EVs in India (2022 – July 2024) reveal that EVs are well-suited to Indian consumers' needs, demonstrating comparable usage patterns to internal combustion engine (ICE) models. Customers drive their BMW or MINI EVs as frequently as their ICE counterparts, with both the BMW i7 and 7 Series averaging around 7,500 kilometers annually. This indicates that EVs integrate seamlessly into everyday life without significant limitations.
AC charging, predominantly used for home or office charging, constitutes 80% of total charging activity. AC charging typically takes about 5.53 hours, compared to 1.78 hours for DC fast charging. Most charging occurs at the start or end of the workday, reflecting a preference for convenience. On average, EV owners need to charge their vehicles only once a week, equating to approximately 4-5 charging sessions per month. These patterns suggest that EVs are not only practical but also align well with the daily routines of Indian consumers.
Luxury Customers’ Expectations from Electric Vehicles
Development of best-in-class electric products combined with the unparalleled customer experience in sales, aftersales and financial services are always a top consideration for luxury vehicle customers. The entry premium segment acts as a steppingstone into the world of luxury for many near-premium customers who become first-time luxury buyers. At the same time, within the luxury circle, there are those who want to be further differentiated by owning only the best-in-class. By blending driving pleasure with zero emissions, luxurious EV offerings resonate with a growing clientele embracing a progressive and sustainable mindset.
Product Development to Play key Role
The most diverse and innovative product range, designed to cater to diverse customer needs, along with one of the largest premium charging networks in 35 cities across the country plays an important role in our success. Till date, BMW Group India has put more than 2,000 luxury EVs on the Indian roads. A perfect example is the BMW iX which is the highest selling luxury electric vehicle in India. With proven strengths, future-oriented technologies and a robust premium charging network, this will go to the next level.
Policy’s Impact in Uptake of Electric Mobility
The demand for premium electric cars is set to grow in India and regulatory policies will play a pivotal role in boosting adoption. Incentives like lower taxation and FAME subsidy makes luxury electric cars a highly attractive choice. A strong and reliable public charging infrastructure will boost confidence among buyers and market development. At the same time, private players are also helping by building their own infrastructure.
Electric Mobility Adoption
At present, it is the consumers in urban markets that are driving majority of demand but prospects from emerging markets are strengthening quickly in the medium to long-term. Many enquiries and bookings for electric vehicles are now also coming from cities like Chandigarh, Lucknow, Kochi etc. The rate at which adoption is taking place in markets beyond metros will help boost customer confidence at a larger scale.
Integrating Electric Mobility in Smart Cities
India's smart cities initiative is driving the integration of electric mobility into urban planning, aligning with goals for sustainable development and efficient public transportation. As smart cities like Pune, Bangalore, and Hyderabad develop, they are prioritizing EV-friendly infrastructure, such as extensive charging networks and green corridors.
Electric vehicles are becoming essential in reducing urban pollution and improving air quality, making them a critical component of these cities' environmental strategies. The focus on electric buses, shared mobility, and smart transportation systems in these cities is setting a precedent for other urban areas in India, showcasing the practical benefits of electric mobility in densely populated environments. This approach is transforming urban transportation, making it cleaner, more efficient, and better suited to the needs of modern cities.
Future Trends in Electric Mobility Space
We believe, there are three key action areas that will dominate the mobility of tomorrow: electric, digital, circular. Each of these on its own is already a challenging and inherently complex task. Combining all three aspects into a coherent overall concept is the ultimate challenge. This capability will determine future competitiveness in automotive industry. With the Neue Klasse (New Class) due to be launched in 2025, BMW Group will open up new dimensions in several areas – design, operating concepts, efficiency and sustainability.
BMW Group is leading the charge towards a sustainable electric transportation ecosystem by investing heavily in the development of innovative electric vehicles. By leveraging our engineering expertise and technological prowess, we are creating a lineup of all-electric models that cater to the diverse needs.
Embracing a circular economy approach is key to future mobility solutions. We have implemented and are further exploring innovative ways to reduce waste, optimize resource utilization, and extend the life cycle of vehicles and components. This includes the development of advanced battery recycling technologies, the use of renewable and recyclable materials in production processes and closing material loops as far as possible.
In the age of digital transformation, cutting-edge technologies are at the forefront of mobility integration. The power of connectivity, artificial intelligence, and data analytics is enhancing the driving experience, improving efficiency, and providing customers with seamless and personalized mobility solutions. From advanced driver assistance systems to cloud-based services and over-the-air updates, modern vehicles are constantly pushing the boundaries of what's possible in the digital realm.
The focus on electric, digital, and circular mobility will shape the future of the automotive industry, setting a new standard for what luxury means. This forward-looking approach promises a harmonious blend of elegance and sustainability, paving the way for a progressive and responsible future in the Indian automotive landscape.
Lately, there has been a rise in adoption of sustainable mobility. Several factors have played a key role in driving the change towards sustainable mobility. Today, climate neutrality has touched people’s lives, united them to mobilise resources to make a difference. Individuals are now increasingly environment conscious and want to make a contribution in reducing carbon footprint. When great product attributes are met with green solutions, there is an even more attractive proposition. Young achievers are especially conscious towards making sustainable choices when it comes to mobility solutions and are actively shaping the demand for electric luxury car market in India.
Growth Outlook for Sustainable Mobility
The Indian luxury market is still at a nascent stage but has immense potential with population of over a billion. The customer base has evolved tremendously in the last decade. Apart from traditionally wealthy families, emergence of a new group of achievers in India with a global outlook prefer to indulge in luxury lifestyle. Also, since the pandemic, there is a greater realization among people to live life to the fullest and enjoy the best things. Personal mobility is on the rise. Within this setting, there is an increased realisation of protecting environment that is leading consumers to gravitate towards zero emission vehicles. Electric vehicles (EVs) are not only environment friendly but also practical in terms of usage and cost savings. There is immense opportunity and headroom to grow and the story of Indian automobile growth in this decade will be transformational.
EVs Viability for Indian consumers
Absolutely. EV usage is perfectly suited for Indian requirements. Insights from 6.4 million kilometers driven by BMW and MINI EVs in India (2022 – July 2024) reveal that EVs are well-suited to Indian consumers' needs, demonstrating comparable usage patterns to internal combustion engine (ICE) models. Customers drive their BMW or MINI EVs as frequently as their ICE counterparts, with both the BMW i7 and 7 Series averaging around 7,500 kilometers annually. This indicates that EVs integrate seamlessly into everyday life without significant limitations.
AC charging, predominantly used for home or office charging, constitutes 80% of total charging activity. AC charging typically takes about 5.53 hours, compared to 1.78 hours for DC fast charging. Most charging occurs at the start or end of the workday, reflecting a preference for convenience. On average, EV owners need to charge their vehicles only once a week, equating to approximately 4-5 charging sessions per month. These patterns suggest that EVs are not only practical but also align well with the daily routines of Indian consumers.
Luxury Customers’ Expectations from Electric Vehicles
Development of best-in-class electric products combined with the unparalleled customer experience in sales, aftersales and financial services are always a top consideration for luxury vehicle customers. The entry premium segment acts as a steppingstone into the world of luxury for many near-premium customers who become first-time luxury buyers. At the same time, within the luxury circle, there are those who want to be further differentiated by owning only the best-in-class. By blending driving pleasure with zero emissions, luxurious EV offerings resonate with a growing clientele embracing a progressive and sustainable mindset.
Product Development to Play key Role
The most diverse and innovative product range, designed to cater to diverse customer needs, along with one of the largest premium charging networks in 35 cities across the country plays an important role in our success. Till date, BMW Group India has put more than 2,000 luxury EVs on the Indian roads. A perfect example is the BMW iX which is the highest selling luxury electric vehicle in India. With proven strengths, future-oriented technologies and a robust premium charging network, this will go to the next level.
Policy’s Impact in Uptake of Electric Mobility
The demand for premium electric cars is set to grow in India and regulatory policies will play a pivotal role in boosting adoption. Incentives like lower taxation and FAME subsidy makes luxury electric cars a highly attractive choice. A strong and reliable public charging infrastructure will boost confidence among buyers and market development. At the same time, private players are also helping by building their own infrastructure.
Electric Mobility Adoption
At present, it is the consumers in urban markets that are driving majority of demand but prospects from emerging markets are strengthening quickly in the medium to long-term. Many enquiries and bookings for electric vehicles are now also coming from cities like Chandigarh, Lucknow, Kochi etc. The rate at which adoption is taking place in markets beyond metros will help boost customer confidence at a larger scale.
Integrating Electric Mobility in Smart Cities
India's smart cities initiative is driving the integration of electric mobility into urban planning, aligning with goals for sustainable development and efficient public transportation. As smart cities like Pune, Bangalore, and Hyderabad develop, they are prioritizing EV-friendly infrastructure, such as extensive charging networks and green corridors.
Electric vehicles are becoming essential in reducing urban pollution and improving air quality, making them a critical component of these cities' environmental strategies. The focus on electric buses, shared mobility, and smart transportation systems in these cities is setting a precedent for other urban areas in India, showcasing the practical benefits of electric mobility in densely populated environments. This approach is transforming urban transportation, making it cleaner, more efficient, and better suited to the needs of modern cities.
Future Trends in Electric Mobility Space
We believe, there are three key action areas that will dominate the mobility of tomorrow: electric, digital, circular. Each of these on its own is already a challenging and inherently complex task. Combining all three aspects into a coherent overall concept is the ultimate challenge. This capability will determine future competitiveness in automotive industry. With the Neue Klasse (New Class) due to be launched in 2025, BMW Group will open up new dimensions in several areas – design, operating concepts, efficiency and sustainability.
BMW Group is leading the charge towards a sustainable electric transportation ecosystem by investing heavily in the development of innovative electric vehicles. By leveraging our engineering expertise and technological prowess, we are creating a lineup of all-electric models that cater to the diverse needs.
Embracing a circular economy approach is key to future mobility solutions. We have implemented and are further exploring innovative ways to reduce waste, optimize resource utilization, and extend the life cycle of vehicles and components. This includes the development of advanced battery recycling technologies, the use of renewable and recyclable materials in production processes and closing material loops as far as possible.
In the age of digital transformation, cutting-edge technologies are at the forefront of mobility integration. The power of connectivity, artificial intelligence, and data analytics is enhancing the driving experience, improving efficiency, and providing customers with seamless and personalized mobility solutions. From advanced driver assistance systems to cloud-based services and over-the-air updates, modern vehicles are constantly pushing the boundaries of what's possible in the digital realm.
The focus on electric, digital, and circular mobility will shape the future of the automotive industry, setting a new standard for what luxury means. This forward-looking approach promises a harmonious blend of elegance and sustainability, paving the way for a progressive and responsible future in the Indian automotive landscape.
