Growth of EV Car Market in India:

A Study of Factors Influencing Consumer Decision Making for EV Cars

Somtirtha Das1, Dr. B.S. Patil2

1 Student, Dayananda Sagar Business School, Bengaluru, India

2Director, Dayananda Sagar Business School, Bengaluru, India

ABSTRACT

The electric vehicle (EV) market in India is at a pivotal juncture, marked by ambitious climate goals and evolving consumer behavior, yet hindered by persistent adoption barriers. This study examines the multifaceted factors influencing consumer decision-making in India’s EV car market, with a focus on affordability, infrastructure, environmental awareness, and policy incentives. Employing a mixed-methods approach, including a survey of 350 potential car buyers across Tier 1 and Tier 2 cities and interviews with 15 industry stakeholders, the research identifies critical drivers and deterrents shaping EV adoption. Findings reveal that high upfront costs remain the foremost barrier, cited by 72% of respondents, despite long-term savings potential. Charging infrastructure gaps exacerbate consumer skepticism, with 65% expressing “range anxiety” due to sparse charging networks. While environmental benefits motivate 54% of consumers, practical concerns like reliability and resale value dominate purchasing priorities. A striking 68% of participants were unaware of government subsidies, underscoring ineffective policy communication. Regional disparities further complicate adoption, as urban consumers prioritize status and technology, while rural buyers face infrastructural and informational voids. The study highlights the need for consumer-centric strategies, recommending financial innovations (e.g., battery leasing), aggressive infrastructure expansion, and targeted awareness campaigns to bridge the gap between policy intent and market reality. The electric vehicle (EV) market in India is growing, but many challenges slow down its adoption. While the government has ambitious climate goals, and consumer interest is increasing, several obstacles still prevent more people from buying EVs. This study looks at key factors influencing EV adoption in India, focusing on cost, infrastructure, environmental awareness, and policy support.

A survey of 100 potential car buyers from Tier 1 and Tier 2 cities, along with interviews with industry experts, helped identify major drivers and barriers to EV adoption. The study found that the biggest challenge is the high upfront cost, with EVs are too expensive despite the long-term savings they offer. Another major concern is the lack of charging stations, leading to “range anxiety.” Consumers worry about running out of charge due to the limited number of charging points.

Although the environmental benefits of EVs, they prioritize practical concerns like reliability and resale value. The study also found that few people were unaware of government subsidies for EVs, showing that policies are not being communicated effectively. There are also regional differences in how people view EVs. In cities, buyers focus more on brand image and technology, while in smaller towns and rural areas, people struggle with poor infrastructure and a lack of information.

To overcome these challenges, the study suggests several solutions. Financial innovations, like battery leasing, can help make EVs more affordable. Expanding charging infrastructure is also crucial to reduce range anxiety. In addition, targeted awareness campaigns can educate consumers about EV benefits and available subsidies.

By improving economic incentives, expanding infrastructure, and increasing awareness, India can speed up its transition to electric mobility. These efforts will help create a cleaner environment and a more inclusive future for the automotive industry.

By aligning economic incentives, infrastructural readiness, and environmental advocacy, this research provides actionable insights to accelerate India’s transition to sustainable mobility, fostering a cleaner and more inclusive automotive future.

Keywords: Electric Vehicles (EVs), EV Market Growth, Environmental Awareness, Government Policies, Charging Infrastructure, Barriers to Adoption, Consumer Behavior, Consumer decision making.