Independent houses, charging infra boosting EV popularity in non-metros

25 per cent of Tata Tiago EV buyers are first-time buyers and include customers from states such as Bihar, Madhya Pradesh, Uttar Pradesh, and Andhra Pradesh

The sales of electric vehicles (EV) are rising in cities beyond major metropolises such as Delhi, Mumbai, and Bengaluru, The Economic Times (ET) reported. As EVs target the mass market with more affordable models, they are becoming popular in non-metropolitan cities. Luxury brands like Mercedes, BMW, Audi, and Volvo are also witnessing a similar trend.

Tata Motors, the biggest player in the electric four-wheeler space, sells 4 out of every 5 electric cars in India. The report said that 25 per cent of Tiago EV buyers are first-time buyers and include customers from states such as Bihar, Madhya Pradesh, Uttar Pradesh, and Andhra Pradesh.

 

Referring to data from Ather Energy, the report said that 53 per cent of its total sales come from non-metro centres. Mercedes Benz said that customer awareness and interest levels in tier II-III markets are similar to what the company sees in large metros.

Luxury electric vehicles

The Managing Director of Mercedes-Benz India, Santosh Iyer, said that since the buyers in non-metros usually own independent houses, it is easier for them to charge their vehicles. He said that cities like Cuttak, Karnal, Kozhikode, and other markets are ready for luxury electric vehicles.

Carmakers have already sold around 500 units of luxury EVs in the first three months of the year, which is more than the total sales recorded last year, the report said. In addition to this, electric cars are expected to more than double and cross the 100,000 mark for the first time in 2023. This may drive manufacturers like Maruti Suzuki, Tata Motors, and Hyundai Motor India to introduce more EV models in the next two to three years.

Head of sales at Tata Passenger Electric Mobility, Vivek Srivatsa, was quoted in the report as saying, "Customers are now realising that the barriers to adoption - in terms of range, charging, and cost of ownership - no longer exist." He said, customers are now contemplating when to buy an EV and not if they should buy one ever, the report said.

Running costs

Running costs for 1,000 km per month result in savings of around Rs 7,000, he added. The cost of running an EV is around Re1 per km, compared to Rs 8 per km for internal combustion engine cars.