8 Out Of 10 Indian Buyers Want Hybrids Instead Of Electric Cars: New Survey
Many experts believed that the future of mobility would be electric. However, in the last few months, they are being proven wrong as sales of electric vehicles have been plummeting and sales of hybrid vehicles are increasing. Recently, a survey was conducted in India which revealed that Indian buyers are leaning more towards hybrid vehicles than electric vehicles. As per this new survey conducted by Grant Thornton Bharat, 8 out of 10 Indian car buyers are willing to opt for premium hybrids over electric cars.
Hybrids gaining popularity over EVs
The survey conducted by Grant Thornton Bharat has indicated a shift in Indian car buyers’ preferences. Of the total, 40 percent of respondents have favored hybrid vehicles. Meanwhile, electric vehicles have only been preferred by 17 percent of the public.
Additionally, despite the growing demand for alternative-fueled vehicles, ICE (internal combustion engine) vehicles still have strong demand, with 34 percent of buyers still willing to buy ICE cars. This is a huge indication that the future of 100 percent electric mobility is still far ahead.
Why are people favoring hybrid cars?
There are numerous reasons why car buyers prefer to buy strong hybrid cars. The main one is that they do not have to worry about the limited range that electric vehicles have. Hybrids provide peace of mind, as drivers know they can refill their vehicles at any remote location and continue their journey.
In the case of electric vehicles, the charging infrastructure is still not very accessible to all EV owners. People have not become comfortable with the idea of driving EVs over long distances. Additionally, the charging time taken by EVs is much longer than it takes hybrid cars to refill their empty tanks.
Another important reason behind the growing popularity of hybrid vehicles is the mileage. Hybrid cars provide high mileage, and the mileage-conscious mindset of Indian buyers is helping make hybrids more mainstream in the country.
Road tax exemption on hybrid vehicles
Another major reason behind the growing popularity of hybrid vehicles is the road tax waiver. Prior to the ruling of UP’s court, strong hybrids in the state were taxed at 48 percent, while electric vehicles enjoyed only a 5 percent road tax.
Thankfully, after a legal battle taken on by Piyush Bhutani, a businessman from Prayagraj, the road taxes on hybrid vehicles were waived off. In his case, he argued that the state’s EV policy stated that hybrids are included within the definition of EVs, which led to the court providing him with a road tax waiver as EVs.
Soon after this, the Uttar Pradesh government stated that road tax on strong hybrid vehicles would be waived off. Due to this reason, the sales of hybrid vehicles have increased. Additionally, taking inspiration from the UP government, Karnataka is also considering waiving road taxes for strong hybrid cars.
Electric sales are falling
As mentioned before, the sales of electric vehicles are falling every month. According to the sales figures posted by major OEMs, the month of September was the worst sales month for EVs. The total electric car sales in September were 5,733 units, which is the lowest it has been in the last 19 months.
The biggest hit has been taken by Tata Motors, which lost a major chunk of its EV market share. Presently, the company has a 61 percent market share, which was 68 percent in September 2023. Its newest model, the Curvv.ev, which was seen as an important model for its EV arm, has also not performed very well.
Global EV slowdown
It also has to be noted that the falling sales of EVs are not limited to India itself. Rather, the entire global market has been witnessing a falling demand for electric cars. Major automakers like Ford, Mercedes-Benz, and others have changed their plans to go all-electric.
They have stated that challenges such as high battery costs, range anxiety, and insufficient charging infrastructure have led to the poor sales of EVs. A number of major OEMs have now started exploring the possibility of adding more hybrid vehicles to their lineups to boost sales.
What does it mean for car buyers?
This shift in market sentiment towards hybrids will be very beneficial for car buyers in India. The reason behind this is that currently, strong hybrid vehicles are very expensive. However, once the automakers realize that they need to offer better fuel efficiency by providing hybrid cars on a budget, Indian car buyers will see a number of new strong hybrid cars in the affordable segment.