2020 Global Automotive Consumer Insights

GLOBAL AUTOMOTIVE INSIGHTS

2020 Global Automotive Consumer Study India

Contents

Global study coverage

3

Willingness to pay for advanced technology

4

Advanced vehicle technologies Connectivity

5

Autonomous drive

12

Shared mobility

17

Electrification

26

Future intentions

43

Copyright Š 2020 Deloitte Development LLC. All rights reserved.

2020 Deloitte Global Automotive Consumer Study

2

Global study coverage The 2020 study includes more than 35K consumer responses across 20 global markets

United Kingdom (n=1,264)

Belgium (n=1,286)

Germany (n=3,002) Austria (n=1,279)

Canada (n=1,296)

Japan (n=3,056) France (n=1,266) Rep. of Korea (n=3,013)

Spain (n=1,268) United States (n=3,006)

Mexico (n=1,262)

Study methodology The study is fielded using an online panel methodology where consumers of driving age are invited to complete the questionnaire (translated into local languages) via email. It was fielded in 20 countries and designed to be nationally representative of the overall population in each market.

Italy (n=1,274) China (n=3,019) India (n=3,022)

Australia (n=1,253)

Turkey (n=1,268) South Africa (n=1,260)

Malaysia (n=1,279)

Thailand (n=1,258)

Indonesia (n=1,268)

Southeast Asia (n=3,805)

Copyright Š 2020 Deloitte Development LLC. All rights reserved.

2020 Deloitte Global Automotive Consumer Study

3

First, consumer willingness to pay for advanced tech is encouraging in India India is one of the few markets where people appear willing to pay for advanced technologies, perhaps opening the door for OEMs looking for an ROI on the billions invested to date Willingness to pay for technologies I wouldn’t pay more

Up to ₹25,000

₹25,000 to less than ₹1,00,000

More than ₹1,00,000

12%

15%

36%

36%

44%

41%

7%

8%

8%

8%

14%

Alternative engine technologies

Connected technologies

Safety technologies

Autonomous technologies

Infotainment technologies

20% 41%

32%

18%

11% 32%

42% 43% 32%

Safety technologies - Lane departure warning, blind spot detection, night vision, etc.; Connected technologies - Communication with other vehicles and infrastructure to optimize traffic flow, diagnose problems with the vehicle and schedule service appointments, etc.; Infotainment technologies - Video streaming, voice recognition, etc.; Autonomous technologies - Full self-driving cars, adaptive cruise control, etc.; Alternative engine technologies - Electric, hybrid, fuel cell, etc.

Q7: How much more would you be willing to pay for a vehicle that had each of the technologies listed below and that met your wants and needs?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

4

What do consumers think about connected vehicles?

5

Consumers remain willing to share their personal information They are comfortable sharing their data with the OEM, dealer and commercial third parties if they receive “significant benefit” – opening the door to data monetization Consumers willingness to share personal information

81% I would share my personal information with the automotive manufacturer and/or dealer if I received significant benefits

83% 2020 2017

I would share my personal information with commercial third parties if I received significant benefits (e.g., sharing with automotive supplier, technology provider, telecom company, insurance company, etc.).

75%

73%

Note: Percentage of respondents who are somewhat agree or strongly agree have been added together; did not consider “Don’t know” responses Q33. Please indicate your level of agreement with each of the following statements Sample size: n= 2,931 [2020]; 1,698 [2017] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

6

Consumers are most concerned disseminating biometrics, location and apps data Among the different types of data, they are relatively more inclined to share sensor data related to vehicle status Consumer opinions on types of data collected

Data related to the use of connected services (e.g., smartphone apps)

12%

18%

70%

Data related to vehicle location (e.g., historic and real-time)

13%

18%

69%

Biometric data collected by sensors in the cockpit (e.g., your heart rate)

13%

18%

69%

Data related to driving behavior (e.g., braking, acceleration, speed)

Sensor data related to vehicle status (e.g., brake fluid level)

Not at all concerned/Not very concerned

17%

19%

Neutral

19%

64%

21%

60%

Somewhat concerned/Very concerned

Q34. As vehicles become more and more connected to the internet, how concerned would you be if the following types of data were shared with your vehicle manufacturer, dealer, insurance company and/or other third parties?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

7

Consumers trust OEMs the most to manage their data Only 15 percent of consumers say they would most trust a government agency to manage their connected data Consumer opinions on whom they trust the most to manage data generated by their vehicle

Car manufacturer

35%

Government agency

15%

Cloud service provider (e.g., Amazon, Google)

11%

Insurance company

10%

Vehicle dealer

10%

Financial service provider

8%

Cellular service provider (e.g., Verizon, Vodafone) Other None of the above

7%

0% 4%

Q36. In a scenario where you owned a connected vehicle, which of the following entities would you trust the most to manage the data being generated and shared?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

8

Consumers are interested in receiving over-the-air (OTA) software updates Three-quarters of consumers are interested in having a connected vehicle that receives overthe-air software updates to enhance and/or correct its functionality over time Percentage of consumers who are interested in OTA updates

Not at all interested

Not very interested

3% 6%

Neutral

Somewhat interested

17% 36%

Very interested

38%

Q35. How interested are you in having a connected vehicle that received over-the-air (OTA) software updates to enhance and/or correct its functionality over time?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

9

Majority of consumers are willing to pay up to ₹50,000 for connectivity Only 1 in 10 consumers are not willing to pay any more for a connected vehicle that facilitates an enhanced mobility experience Consumers’ willingness to pay for various connected technologies

% of consumers

I wouldn’t pay any more

Up to ₹50,000

₹50,000 or more

30%

30%

29%

27%

26%

25%

65%

64%

65%

67%

66%

67%

5%

6%

6%

6%

8%

8%

Ability for the vehicle to self-diagnose problems and schedule service appointments

Ability for your vehicle to communicate with other vehicles and road infrastructure to improve safety

Communication technology to optimize traffic flow

Sensors in the vehicle’s Ability to connect to the Automatically find and pay cockpit to detect and act internet to facilitate for parking on health and wellness infotainment and personal issues communication activities

Q37: How much more would you be willing to pay for a vehicle that had the following connectivity technologies?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

10

Half of consumers prefer to pay up front for added connectivity features 8 out of 10 consumers, across generations, prefer paying for additional connectivity technologies either up front as part of vehicle purchase price or on a per use basis How would consumers prefer to pay for additional connectivity technologies?

Overall

As part of a monthly service to which I subscribe, 16%

Up front as part of the vehicle purchase price, Charged on 48% a per use basis, 36%

By generation 48% 49% 44%

Up front as part of the vehicle purchase price

37% 33% 37%

Charged on a per use basis

As part of a monthly service to which I subscribe

15% 18% 19%

Gen Y/Z Gen X Pre/Boomers

Q38. How would you prefer to pay for additional connectivity technologies in your vehicle?

Sample size: n= 2,958; Pre/boomers (363), Gen X (463), Gen Y/Z (2,132) Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

11

What do consumers think about autonomous vehicle (AV) technology?

12

Concerns over perceived safety of autonomous technology remain high Though consumers think that connected vehicles are beneficial, they need more evidence that the technology can be used safely in real-world conditions Percentage of consumers who agree that…

As vehicles become more connected via wireless internet, they are more beneficial

80%

With connected vehicles, I fear someone hacking into my car and risking my personal safety

72%

Media reports of accidents involving autonomous vehicles make me cautious of the technology

Fully self-driving cars will not be safe

70%

58%

Note: Percentage of respondents who strongly agreed or agreed have been added together; did not consider “NA/Don’t know“ responses Q3. To what extent do you agree with the following statements regarding future vehicle technology?

Sample size: n= 2,954 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

13

Consumer apprehension goes well beyond riding in an autonomous vehicle Two-thirds of consumers are concerned about sharing the highway with heavy commercial vehicles operating in fully autonomous mode in the future Percent of consumers who are concerned about

Commercial vehicles (e.g., large tractor trailer trucks) operating in a fully autonomous mode on the highway

66%

Flying passenger drones (i.e., flying taxis) operating in urban airspace to reduce roadway congestion

61%

Riding in a flying passenger drone (i.e., flying taxi)

61% 60%

Riding in an autonomous vehicle you personally own

Riding in a shared autonomous vehicle (e.g., robo-taxi)

Fully autonomous vehicles being tested on the public roads where you live

59% 57%

Q4. How concerned are you with each of the following scenarios?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

14

Government oversight of AV technology remains very important for consumers At the same time, consumers look for whether the vehicle is offered by a brand they trust or if there is a track record of self-driving cars being used safely to increase their level of comfort Factors making consumers feel better about riding in a fully self-driving vehicle 2017

2018

2019

2020

85% 80%

82%

80%

79%

81%

78% 74%

72%

Government safety certification

82%

80%

Vehicle is offered by a brand you trust

74%

An established track record of self-driving cars being used on the streets safely

Note: Percentage of respondents who are somewhat more likely or significantly more likely have been added together; did not consider “Don’t know” responses Q5: Would the following factors make you more or less likely to ride in a self-driving car?

Sample size: n= 2,964 [2020]; 1,719 [2019]; 1,720 [2018]; 1,709 [2017] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

15

Speaking of trust, consumers prefer AV specialists to bring the tech forward Consumer trust in existing technology companies has declined while AV specialists have ticked up on a YoY basis Type of company consumers trust the most to bring fully self-driving technology to market 41% Traditional car manufacturer

A new company that specializes in self-driving vehicles

39% 37%

36% 34% 29%

33% 30%

29%

30% 30%

1%

1%

1%

0%

2017

2018

2019

2020

29%

Existing technology company

Others

Q6: Which of the following type of company would you trust the most to bring fully autonomous (self-driving) vehicle technology to the market?

Sample size: n= 3,022 [2020]; 1,755 [2019]; 1,761 [2018]; 1,748 [2017] Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

16

What do consumers think about new mobility models?

17

Almost all consumers drive their vehicle to work at least occasionally However, 65 percent of those consumers are not ready to pay more than ₹50 as a user fee even if it reduced their commute time by a significant amount (25 percent) Frequency of driving vehicle to work (% of consumers)

Never, 1%

1-2 times per week, 15%

Every day, 77%

Occasi onally, 7%

How much are consumers willing to pay if it reduced their commute time by 25 percent?

Less than ₹10, 13%

₹10 to less than ₹50, 45%

₹50 to less than ₹100, 25%

More than ₹100, 10%

I would not pay anything, 7% Q18: How often do you drive your vehicle to work?

Q19: How much would you be willing to pay in the form of a user fee (e.g., congestion charge, road toll) if it reduced your commute time by 25 percent?

Sample size: n= 2,105 [Q18]; 2,080 [Q19] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

18

Younger consumers drive more often to the office and are willing to pay more It appears that younger consumers are better able to see the benefit of paying a user fee to significantly reduce their daily commute time Driving vehicle to work (% of consumers) 4% 11% 18%

67%

Pre/Boomers Every day

2%

1%

6%

7%

17%

14%

78%

75%

Gen X 1-2 times per week

Gen Y/Z Occasionally

Never

Willingness to pay user fee (% of consumers) if it reduces commute time by 25 percent 7%

9%

28%

22%

44%

49%

45%

11%

12%

13%

10%

8%

6%

Pre/Boomers

Gen X

Gen Y/Z

11% 25%

I would not pay anything

Less than ₹10

₹10 to less than ₹50

₹50 to less than ₹100

More than ₹100 Q18: How often do you drive your vehicle to work? Q19: How much would you be willing to pay in the form of a user fee (e.g., congestion charge, road toll) if it reduced your commute time by 25 percent?

Sample size for Q18: Pre/boomers (257), Gen X (351), Gen Y/Z (1,497); for Q19: Pre/boomers (248), Gen X (346), Gen Y/Z (1,486) Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

19

Consumers think there are multiple ways to solve traffic congestion Greater access to mass transit, express lanes, and connected vehicles communicating with each other are the best ways to tackle the congestion problem Means to reduce traffic congestion‌

22%

Greater access to mass transit Connected vehicles that communicate with each other

21%

High occupancy express lanes

21% 15%

Road tolls / congestion charges

14%

Regulations that restrict car use

6%

Creation of low- or zero-emission zones Other

1%

Q43. In your opinion, what is the best way to reduce traffic congestion?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

20

Nearly a third (30 percent) of consumers take multi-mode trips on a weekly basis Hardly any difference among generations on using multiple modes of transport in the same trip

% of consumers who use multiple modes of transportation in the same trip

Overall

Never 11% At least once a week 30%

By generation 58% 58% 64%

At least once a week

31% 32%

Rarely (i.e., only as needed)

Rarely (i.e., only as needed) 59% Never

23%

11% 10% 13%

Gen Y/Z Gen X Pre/Boomers

Q39. How often do you use multiple modes of transportation in the same trip (e.g., a trip using a subway, commuter train and your own vehicle)?

Sample size: n= 3,022; Pre/boomers (370), Gen X (478), Gen Y/Z (2,174) Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

21

Regular usage of ride-hailing services has dropped But, there has been a significant increase in the number of people who use the service on an occasional basis as a replacement for the traditional taxi Frequency of ride-hailing usage

2017

2020

32%

47%

I prefer to use ride-hailing services instead of a traditional taxi

74%

I prefer to use ride-hailing services instead of my own vehicle

57%

I travel more often because of ridehailing

56%

57%

38% 15% Never

Reasons for using ride-hailing

11% Rarely

1+ per week Note: Percentage of respondents who said somewhat agree or strongly agree have been added together

Q40. How often do you currently use ride-hailing services?

Q41. To what extent do you agree with the following statements?

Sample size: n= 3,022 [2020]; 1,754 [2017]

Sample size: n= 2,670

India Copyright Š 2020 Deloitte Development LLC. All rights reserved.

2020 Deloitte Global Automotive Consumer Study

22

However, younger consumers prefer to travel more thanks to ride hailing 58 percent of Gen Y/Z consumers travel more often because of ride hailing compared to 48 percent of Pre/Boomers % of consumers who travel more often because of ride-hailing

56%

Overall

48%

Pre/Boomers

53%

Gen X

58%

Gen Y/Z

Note: Percentage of respondents who said somewhat agree or strongly agree have been added together Q41. To what extent do you agree with the following statements?

Sample size: n= 2,670; Pre/boomers (342), Gen X (423), Gen Y/Z (1,905) Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

23

Ride-hail users questioning vehicle ownership remains unchanged 61 percent of consumers may give up vehicle ownership going forward due to the use of ride-hailing services, representing a potential barrier to new vehicle market growth Percentage of consumers who question the need to own a vehicle in the future due to use of ride-hailing services

2020

61%

19%

20%

2017

61%

20%

19%

Yes

No

Don't Know

Q42. Does your use of ride-hailing services make you question whether you need to own a vehicle going forward?

Sample size: n= 2,670 [2020]; 1,477 [2017] Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

24

Younger generations are more willing to give up vehicle ownership At the same time, 20 percent of consumers, across generations, do not plan to give up vehicle ownership in the future due to the use of ride-hailing services Percentage of consumers who question the need to own a vehicle in the future due to use of ride-hailing services

Gen Y/Z

Gen X

Pre/Boomers

19% 64% 20% 58%

21% 49% No

Yes

Q42. Does your use of ride-hailing services make you question whether you need to own a vehicle going forward?

Sample size: Pre/boomers (342), Gen X (423), Gen Y/Z (1,905) Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

25

What do consumers think about electrified vehicle technology?

26

Compared to ICE, BEVs excel on environmental impact and fuel costs However, consumers think BEVs still lag traditional ICE engines when it comes to driving range and residual value Full battery electric vehicles (BEVs) better or worse than traditional gasoline/diesel vehicles

Environmental impact

18%

12%

65%

Cost to refuel the vehicle

22%

14%

Overall quality

21%

17%

Safety Purchase price/monthly payment (if leasing) Status/image Performance and handling

20%

57%

18%

Reliability

26%

20%

Cost of repair and maintenance

27%

19%

34%

Driving range Residual value (when selling or trading in vehicle)

33%

Much worse/somewhat worse

Neutral

Sample size: n= 3,022

9%

50%

7%

50%

7%

46% 45% 17%

42%

16% Much better/somewhat better

41%

8% 9% 7% 10%

Don't know

Q23: In your opinion, to what extent are full battery electric vehicles (BEVs) better or worse than traditional gasoline/diesel vehicles in each of the following areas?

Copyright Š 2020 Deloitte Development LLC. All rights reserved.

7%

50%

20%

25%

7%

53%

11%

23%

7%

55%

20%

30%

5%

India 2020 Deloitte Global Automotive Consumer Study

27

Lack of charging infrastructure remains the top concern regarding BEVs Consumers continue to be concerned about unavailability of charging infrastructure and safety of the battery technology Greatest concern regarding all battery-powered electric vehicles

25%

Lack of electric vehicle charging infrastructure

29% 22% 22%

Safety concerns with battery technology

11%

Time required to charge

2020

14% 16%

Driving range

14% 14%

Cost/price premium

Other

2018

19%

14% 0%

Note: “Other” in 2018 includes percentages for “an all battery electric powertrain is not offered in the type of vehicle I want” and “the brand I prefer doesn’t offer electrified vehicles” Q24: In your opinion, what is the greatest concern regarding all battery-powered electric vehicles?

Sample size: n= 3,022 [2020]; 1,686 [2018] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

28

Half of consumers have access either to a 120V or 240V charging outlet where they live Access to 120V or 240V electric power outlets for charging an EV battery is significant, suggesting more investment in public charging infrastructure is less critical % of consumer who have 120V or a 240V electric power outlet in the area where they live and where they can connect an electric vehicle

120V Outlet

54%

30%

240V Outlet

63%

20%

Note: Did not show “Don’t know” responses Q61. Is there a 120V or a 240V electric power outlet where you live where you could connect an electric vehicle?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

29

Only a third of consumers are willing to pay premium more than ₹1 lakh for an EV In addition, 10 percent of consumers indicate they won’t pay any more for an EV compared to a similar gasoline/diesel vehicle which should be worrisome for OEMs looking for an ROI Percentage of consumers who are willing to pay more for an EV compared to a similar vehicle with traditional engine

20%

Less than ₹50,000

33%

₹50,000 to less than ₹1,00,000

21%

₹1,00,000 to less than ₹3,00,000

9%

₹3,00,000 to less than ₹5,00,000

5%

₹5,00,000 or more Don't know

I wouldn't pay more

2% 10%

Q25. How much more would you be willing to pay for an electric vehicle compared to a similar vehicle with a traditional internal combustion engine?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

30

Younger consumers willing to pay more for an EV compared to other generations However consumers, across generations, are not willing to pay more than ₹1 lakh as a premium for an EV when compared to a similar vehicle with a traditional engine Percentage of consumers who are willing to pay more for an EV compared to a similar vehicle with traditional engine

1%

4% 8%

9%

17%

21%

2% 17% 21%

57%

58%

14%

11%

9%

Pre/Boomers

Gen X

Gen Y/Z

I wouldn't pay more

Less than ₹1,00,000

₹1,00,000 to less than ₹3,00,000

51%

More than ₹3,00,000

Don’t know

Q25. How much more would you be willing to pay for an electric vehicle compared to a similar vehicle with a traditional internal combustion engine?

Sample size: Pre/boomers (370), Gen X (478), Gen Y/Z (2,174) Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

31

4 out 10 consumers think it would take 3+ years to recover BEV costs At the same time, only 10 percent of the consumers think that they can recover the upfront price premium within an year through lower operating and maintenance costs of an EV Percentage of consumers who think it would require “n” number of years to recoup the upfront price premium of an EV over a similar gasoline/diesel vehicle

43% 30%

11%

10% Less than 1 year

1 year to less than 3 years

3 years to less than 5 years

5 years or more

6% Don’t know

Q26. How many years do you think it would take before the expected lower operating and maintenance costs of an all-battery electric vehicle (BEV) would outweigh the upfront price premium?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

32

7 out of 10 consumers fine with less than 320 kms of range from a fully-charged BEV Consumers, across generations, are comfortable with a range of 320 kms/200 miles

Minimum driving range consumers expect from a fully-charged BEV Upto 100 miles/160 kms

28%

200-300 miles (320-480 kms)

30%

More than 300 miles/480 kms

51%

25%

13%

6%

Gen X

43%

31%

15%

7%

Gen Y/Z

40%

31%

16%

7%

Pre/Boomers

15%

14%

7% 50 miles/80 kms

100 – 200 miles (160-320 kms)

6%

100 200 300 400 Don’t know miles/160 miles/320 miles/480 miles/640 kms kms kms kms

Q27: What is the minimum driving range that an all batterypowered electric vehicle (BEV) needs to have?

Sample size for Q27: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

Note: Not shown “Don’t know” Sample size: Pre/boomers (370), Gen X (478), Gen Y/Z (2,174)

India

2020 Deloitte Global Automotive Consumer Study

33

One-third of consumers expect to charge their BEV in 30 minutes to 1 hour At the same time, 29 percent of consumers are ready to wait more than an hour to fully recharge their BEV Expected wait time to fully recharge an all battery-powered electric vehicle (BEV)

35% 24%

22%

7%

7% Less than 10 mins

10 mins to less than 30 mins

30 mins to less than 1 hour

1 hour to less than 4 hours

5%

4 hours or more

Don’t know

Q28: How long should it take to fully recharge an all battery-powered electric vehicle (BEV)?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

34

Higher price of gasoline equals higher level of interest in BEVs If gasoline were to exceed ₹114 per liter, nearly half of consumers would be much more likely to consider buying an all battery-powered vehicle (BEV) % of consumers who would consider buying a BEV if gasoline prices touch

% of consumers (cumulative)

100%

75%

80%

80%

62% 60% 40%

48% 31%

20% 0% 95

114

133 ₹ per liter

Q29: At what price for gasoline would you be much MORE likely to consider buying or leasing an all battery-powered electric vehicle (BEV)?

Sample size: n= 3,022 Copyright © 2020 Deloitte Development LLC. All rights reserved.

152

> 152

India 2020 Deloitte Global Automotive Consumer Study

35

Three-quarters of consumers are interested in a BEV if there were more perks attached Creative offers such as throwing in charging and maintenance costs for the first 3 years of ownership could be a way to incent people into the BEV market Percentage of consumers who are interested to buy a BEV if charging and maintenance costs were covered for first 3 years of ownership

3% 6% Not at all interested Not very interested

15% 46%

Neutral Somewhat interested

30%

Very interested

Q30. How interested would you be in buying an all battery-powered electric vehicle (BEV) if all charging and maintenance costs were covered for the first 3 years of ownership?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

36

In fact, there are a variety of ways to incent people to buy a BEV Offering consumers free maintenance over the full length of ownership or guaranteeing residual value of their vehicle at 100 percent are two ways consumers can be incentivized Percentage of consumers willing to pay the equivalent amount of filling a car with gasoline in order to charge BEV, if‌

78%

You received free maintenance for the length of ownership

Your residual/trade-in value was guaranteed at 100% of the original purchase price

You received 50% off the purchase price of the vehicle

72%

67%

Note: Percentage of respondents who are somewhat willing or very willing have been added together Q32. To what extent would you be willing to pay the equivalent amount of filling a car with gasoline in order to charge your all battery-powered electric vehicle (BEV) under the following scenarios?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

37

Consumers feel OEMs and government are responsible for building charging network But, other stakeholders are also in the mix, potentially opening the door for a public private partnership large enough to achieve the scale required to attack this issue holistically Consumer opinions on whom they think is responsible for building publiclyaccessible EV charging stations and other EV infrastructure

Government 31%

Existing fuel companies 19%

Vehicle manufacturers 34%

Electric utilities (i.e., power companies) 16%

Q31. In your opinion, who should be primarily responsible for building publicly-accessible electric vehicle charging stations and other EV infrastructure?

Sample size: n= 3,022 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

38

Consumer preference for engine type looks to be shifting quickly Intention to remain with traditional ICE engines continues to give way to electric powertrain technology as interest in hybrids (HEVs) and BEVs is growing What type of engine do consumers want in their next vehicle?

51% Gasoline/Diesel (ICE)

61% 69% 25% 21% 16%

Hybrid electric (HEV)

15% All battery-powered electric (BEV)

Other

6% 7%

9% 12% 8%

2020 2019 2018

Note: ‘Other” category in 2020 data includes ethanol, CNG, and fuel cell Q52. What type of engine would you prefer in your next vehicle?

Sample size: n= 2,669 [2020]; 1,591 [2019]; 1,686 [2018] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

39

Lower emissions is the main reason to prefer EVs Another reason for considering EVs is their lower vehicle operating costs Type of engine consumers want in their next vehicle

Reason for considering an electrified vehicle

Other, 9% Hybrid electric/Al l batterypowered electric, 40%

Gasoline/ Diesel (ICE), 51%

Lower emissions/environmental responsibility

56%

Lower vehicle operating costs (e.g., fuel, service) Social status/keeping up with latest technology Vehicle brand

Rebates/tax incentives

21% 11% 7% 5%

Q52. What type of engine would you prefer in your next vehicle?

Q54. What is the main reason you are considering an electrified vehicle?

Sample size: n= 2,669

Sample size: n= 1,060

India Copyright Š 2020 Deloitte Development LLC. All rights reserved.

2020 Deloitte Global Automotive Consumer Study

40

Driving range is the most important factor that consumers look for in an EV For the 40 percent of consumers who intend to purchase an electrified vehicle, the most important factors are: driving range and convenience/time to charge Importance of various factors in choosing an electrified vehicle

Distance that can be driven on a full charge

88%

Gasoline/Diesel (ICE), 51% Convenience to charge/time to charge

Hybrid electric/All batterypowered electric, 40% Other, 9%

Ability to swap the battery as an alternative to recharging

Cost to charge (at charging station or the electricity costs of charging at home)

85%

78%

77%

Note: Percentage of respondents who think very important or extremely important have been added together

Note: ‘Other� category in 2020 data includes ethanol, CNG, and fuel cell Q52. What type of engine would you prefer in your next vehicle?

Sample size: n= 2,669 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

Q53. How important are each of the following factors in your decision to want an electrified vehicle?

Sample size: n= 1,060

India 2020 Deloitte Global Automotive Consumer Study

41

Half of consumers are ready to spend up to ₹10,00,000 for an EV Including dealer or government incentives, 76 percent of consumers plan to shop for an HEV/BEV that retails for less than ₹15,00,000 Percentage of consumers willing to be shopping for an EV in the price range of…

16%

Less than ₹5,00,000 ₹5,00,000 to less than ₹10,00,000

34%

₹10,00,000 to less than ₹15,00,000

26%

₹15,00,000 to less than ₹25,00,000

15%

₹25,00,000 to less than ₹50,00,000 ₹50,00,000 or more

Don't know

6% 2% 1%

Q55. In which of the following price ranges will you be shopping for an electrified vehicle? (Please indicate what you would expect to pay after any dealer or government incentives that might be available) Sample size: n= 1,060 Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

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Looking ahead to buying your next vehicle….

43

Consumers are interested in adopting a subscription ownership model 72 percent of consumers are interested in subscribing to a brand where they can select multiple vehicles – also multi-brand solutions (62 percent) Consumer interest in subscription ownership model

4% 6% 18%

Subscription to a brand where you could select between multiple vehicles

37% 35% 5% 10% Subscription to a third party where you could select between different brands

23% 35% 27%

Not at all interested

Not very interested

Neutral

Somewhat interested

Very interested

Q51. How interested are you in each of the following scenarios?

Sample size: n= 2,669 Copyright Š 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

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Consumer intention to buy a vehicle online direct from an OEM has increased Consumers remain ‘interested’ in moving to a completely digital purchase experience for their next vehicle, with 51 percent saying they’re completely bought into the idea How interested are consumers in by-passing the dealer?

2%

3%

5%

9%

14%

17%

2020

51% Very interested

39%

2019 32%

Somewhat interested

28%

Neutral Not very interested Not at all interested

Q58. If you had the option to acquire your next vehicle directly from the manufacturer (via online process), how interested would you be?

Sample size: n= 2,669 [2020]; 1,591 [2019] Copyright © 2020 Deloitte Development LLC. All rights reserved.

India 2020 Deloitte Global Automotive Consumer Study

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Contacts Joseph Vitale Jr.

Rajeev Singh

Global Automotive Leader Deloitte Touche Tohmatsu Limited jvitale@deloitte.com

Automotive Leader, India Deloitte India rpsingh@deloitte.com

Scan the QR code or click the link below to visit the global automotive thought leadership collection on Deloitte Insights:

Ryan Robinson Automotive Research Leader Deloitte LLP ryanrobinson@deloitte.ca

Steve Schmith Global Automotive Marketing Leader Deloitte Services LP sschmith@deloitte.com

Deloitte Insights/automotive

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Copyright © 2020 Deloitte Development LLC. All rights reserved.