A recent report by Google and Boston Consulting Group (BCG) forecasts that India’s mobility industry will surpass USD 600 billion by 2030, driven by rapid advancements in electric, shared, and connected mobility solutions. Emerging revenue streams such as electric vehicles (EVs) are expected to contribute USD 100 billion, with classic segments like internal combustion engine (ICE) vehicles, financing, and insurance forming the majority of the market. The report also highlights evolving consumer preferences, with increasing adoption of electric two-wheelers (E2Ws) and four-wheelers (E4Ws). Despite challenges such as charging infrastructure and high costs, India's mobility landscape is set to undergo a transformational shift.

Key Insights into India’s Mobility Market

Market poised to double in size:

The Indian mobility sector is charting a unique trajectory, set to cross USD 600 billion by 2030.
Emerging revenue pools like electric, shared, and connected mobility will contribute USD 100 billion, while traditional revenue streams such as ICE vehicle sales, components, financing, and insurance will dominate.
Shift towards electric mobility:

Adoption of electric two-wheelers (E2Ws) and electric four-wheelers (E4Ws) is accelerating, with 2W EVs expected to account for 35-40% of the market by FY30, up from 5.4% in FY24.
Similarly, 4W EVs are projected to grow to 15-17% by FY30, from just 2.2% in FY24.

Challenges Facing EV Adoption

Key consumer concerns:

51% of respondents identified the lack of EV charging infrastructure as a major hurdle.
45% were concerned about the high cost of electric vehicles, while 31% cited battery life as a critical issue.
20% raised concerns about the limited variety of models available in the 4W EV segment.
Cost and infrastructure barriers:

Addressing these concerns is essential for accelerating EV adoption. Strategic investments in charging networks and battery technology will play a pivotal role in driving consumer confidence.

Evolving Consumer Preferences

Distinct priorities for E4W and E2W buyers:

E4W consumers prioritize advanced technology, exclusivity, and premium features.
E2W buyers, in contrast, value practicality, affordability, and comfort over luxury.
Influence of women in decision-making:

Women are playing a significant role in shaping the EV market, influencing 52% of purchasing decisions in the EV space, compared to 38% for ICE vehicles.

Technological Features Driving Demand

Consumer demand for connected features:

Approximately 80% of consumers express strong interest in features like infotainment systems, real-time parking assistance, and anti-theft technology.
However, demand for globally popular features such as remote controls remains relatively low in India.
Personalized solutions for diverse segments:

As the market matures, high-tech solutions should align with consumer preferences, serving as tools for personal expression and functionality.

Opportunities in Electric Mobility

Mass adoption of EVs:

The report notes that one in three consumers is considering EVs for their next purchase, underscoring a shift in consumer mindset.
While EVs gain traction, manufacturers need to balance cost, infrastructure, and design to meet consumer expectations.
Demand for innovation:

The industry’s success will hinge on delivering affordable EVs, expanding the charging network, and offering diverse model options.

Future Prospects for India’s Mobility Industry

Economic transformation: The mobility industry’s growth will contribute significantly to India’s economy, creating jobs and fostering innovation in transportation.
Environmental impact: With increased adoption of EVs, India can reduce carbon emissions, aligning with global sustainability goals.
Global competitiveness: By addressing infrastructure challenges and promoting innovation, India can position itself as a leader in the global EV market.

Bottomline

The Indian mobility industry is at the cusp of a major transformation, poised to exceed USD 600 billion by 2030. With a robust shift towards electric, shared, and connected mobility, the market presents immense opportunities for growth and innovation. While challenges such as infrastructure, costs, and battery technology remain, the industry’s potential to reshape urban transportation is undeniable. By aligning with consumer preferences and addressing key barriers, India can unlock a sustainable, technology-driven future in mobility.