Environmental and financial benefits drive EV adoption in India: Study

According to a new study by leading insurer ICICI Lombard General Insurance, environmental benefits and reduced fuel costs are the top reasons for switching to EVs

Electric vehicles (EVs) are zooming on Indian roads, as nearly 77 per cent of EV owners are motivated by reduced emissions. Among younger drivers, this eco-consciousness soars to 81 per cent. Environmental benefits and reduced fuel costs are the top reasons for switching to  EVs, however they come with their own set of challenges.
 

According to a new study by general insurance major ICICI Lombard General Insurance, environmental benefits and reduced fuel costs are the top reasons for switching to EVs.
 

This shift towards sustainability of EV users, motivated by the promise of reduced emissions and rising eco-consciousness among younger drivers, with 81 per cent citing environmental benefits as their primary reason for switching to EVs.

Financial prudence also plays a crucial role, with 73 per cent of respondents highlighting reduced fuel costs as a pivotal factor in their decision.
 

However, along with this there are several challenges remain such as battery charging time is a major concern as revealed by 61 per cent of EV owners, followed by limited driving range stated 54 per cent and insufficient charging infrastructure as stated by 52 per cent. The high initial cost also remains a hurdle for first-time car buyers. 
 

Around 91 per cent of consumers are aware of EV-specific motor insurance policies. Premium cost and claim settlement experience are the top factors considered when purchasing EV insurance. Consumers are willing to invest in comprehensive coverage, with 24/7 roadside assistance and battery replacement topping their wish list. The study highlights the importance of educating consumers about the benefits and intricacies of EV insurance.