India’s Mobility Industry Set for Transformation

The Indian mobility industry is on the verge of a significant transformation. According to the “Think Mobility” report released by Google and the Boston Consulting Group (BCG) at the Bharat Mobility Auto Expo, the sector is projected to exceed $600 billion by 2030. This report highlights India’s unique growth trajectory, which diverges from global trends. It emphasizes the increasing demand for electric vehicles (EVs) and the evolving preferences of consumers. As the industry adapts to these changes, it is essential to understand the factors driving this growth and the implications for the future.

Growing Demand for Electric Vehicles

The demand for electric vehicles in India is rising rapidly. The report indicates that one in three consumers is considering an EV for their next purchase. However, preferences vary significantly between electric four-wheelers (E4Ws) and electric two-wheelers (E2Ws). Buyers of E4Ws tend to prioritize advanced technology, sophistication, and exclusivity. In contrast, E2W consumers focus on practicality, comfort, and affordability.

Interestingly, women are playing a crucial role in this market shift. They now influence 52% of EV purchase decisions, a notable increase from 38% in the internal combustion engine (ICE) segment. This change reflects a broader trend where women are becoming key decision-makers in automotive purchases. The report also highlights the emergence of new mobility models, such as electric, shared, and connected solutions, which are expected to generate an additional $100 billion in revenue.

Vikram Janakiraman, managing director and senior partner at BCG, emphasizes the need for companies to adapt to these rapid changes. He states that successful players must frequently adjust their products and solutions to meet the unique needs of Indian consumers. Integrating digital technology and artificial intelligence will be critical in this adaptation process.

The Influence of Gen Z and Digital Trends

Gen Z is emerging as a transformative force in the mobility sector. Members of this generation are 2.7 times more likely to choose self-drive rentals compared to older generations. This trend indicates a shift in consumer behavior, with self-drive rentals and subscription models gaining popularity. A staggering 85% of users express interest in purchasing the vehicles they rent, highlighting a new approach to vehicle ownership.

Moreover, the digital purchase journey is outpacing traditional methods. Consumers increasingly demand personalized experiences, which are driving this shift. Bhaskar Ramesh, director of omni-channel businesses at Google India, notes the immense potential for AI to enhance consumer experiences from pre-purchase to after-sales services. He expresses excitement about collaborating with the industry to foster innovation and growth in this space.

This digital transformation is reshaping how consumers interact with the mobility sector. As technology continues to evolve, companies must stay ahead of these trends to meet the expectations of a tech-savvy generation.

Changing Perceptions of Used Cars

The report also reveals a significant shift in how consumers perceive used cars. One in four first-time car buyers is now considering pre-owned vehicles. This change is driven by lifestyle upgrades rather than mere cost-saving measures. The perception of used cars is evolving, with buyers viewing them as viable options for enhancing their lifestyles.

Natarajan Sankar, managing director and partner at BCG, emphasizes the importance of harnessing global innovations in EVs, digital technology, and AI. He asserts that to succeed, original equipment manufacturers (OEMs) must align their offerings with the distinct demands of Indian consumers. As the third-largest automobile industry in the world, India stands at the cusp of transformative change.

The “Think Mobility” report draws from extensive research, including insights from over 4,500 Indian consumers and leading automotive manufacturers. This comprehensive analysis serves as a valuable resource for driving India’s mobility revolution. As the industry evolves, understanding these trends will be crucial for stakeholders aiming to thrive in this dynamic landscape.


Observer Voice is the one stop site for National, International news, Editorโ€™s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button