New Revenue Streams to Propel India's Auto Sector Transformation

According to the Think Mobility report by Google and the Boston Consulting Group (BCG), unveiled at the Bharat Mobility Auto Expo, the Indian mobility sector is expected to surpass $600 billion by 2030. The report underlines India's growth trajectory in mobility, which is unique in terms of a combination of traditional and innovative revenue sources, different from global trends.

Electric Vehicles (EV) are gaining popularity with one in three consumers considering buying an electric four-wheeler or electric two-wheeler. Consumers have different tastes for E4Ws and E2Ws. In the case of E4Ws, consumers look at advanced technology and exclusivity as a priority while in the case of E2Ws, it is affordability and practicality. 

“Mobility players need to adjust to changing consumer demands. He noted that integrating digital tools, technology, and artificial intelligence (AI) would be crucial in meeting these evolving needs,” said Vikram Janakiraman, Managing Director and Senior Partner at BCG.

The role of women in the EV market is increasing significantly, now accounting for 52 percent of purchase decisions compared to 38 percent in the internal combustion engine (ICE) segment. Emerging mobility models like electric, shared, and connected solutions will add another $100 billion to the tally as consumer priorities continue to shift.

India, which is the third-largest automobile market in the world, is poised for a sea change. "Manufacturers must adapt their products to the preferences of Indian consumers while embracing global best practices on EVs, AI, and digital technologies," Natarajan Sankar, Managing Director and Partner at BCG, said. The report for Think Mobility was based on insights obtained from more than 4,500 Indian consumers and key car manufacturers, with strong data analysis.