In order to slow the progression of climate change and cut down on carbon emissions, the global automobile industry is making a big transition towards electric cars (EVs).
India is also making steady progress towards being fully electrified. According to Vahan, electric vehicle (EV) sales in India reached the amazing milestone of 10,23,735 units in 2022, and the figure was already surpassing an astounding milestone of 11,65,057 units by March 2023. This significant increase in the numbers suggests that people are prepared to adopt electric vehicles as a viable alternative to the high costs of gasoline and CNG.
In addition, given that the government has set an ambitious goal of electrifying thirty percent of the country’s vehicle fleet by the year 2030, the supply is more likely to lean in the direction of favouring electric vehicles.
However, despite the phenomenal development, the electric vehicle (EV) business in India is still in its infancy, and the shift towards electric mobility brings up a new set of issues for the retail industry. One of the difficulties that have recently arisen is the decrease in the FAME II subsidy, which is currently being discussed across the sector as a whole. It is only one of many additional obstacles to selling electric vehicles in retail settings that calls for rapid action.
Financing Challenges
Financing is a crucial obstacle that must be overcome in the retail industry. Customers in India may not be prepared to make an initial financial investment of a significant amount of money since electric vehicles (EVs) are still considered to be somewhat pricey. In addition, unlike conventional automobiles, electric vehicles require an initial investment of a large amount in the battery, which is the most costly component of the vehicle.
EV retailers need to maintain tight relationships with banks and other financial institutions in order to overcome difficulties with financing and come up with creative financing options that meet issues raised by customers. This might include providing enticing lending programmes that include low interest rates, extended payback durations, and a buy-back guarantee.
Service Unavailability
The lack of service facilities is yet another big obstacle for businesses that deal with electric vehicles (EVs). When it comes to maintenance and repairs, electric vehicles need specific tools and employees that have received training. However, India desperately needs additional service shops like this at the moment, which makes it difficult for clients to acquire the maintenance and repairs they need for their cars.
To find a solution to this problem, electric vehicle merchants need to put money into the establishment of service centres and the education of their employees on electric vehicle technology. They might also form partnerships with service facilities that are already in operation in order to provide their mechanics with training and certification programmes.
Limited Competency
Because the market is still maturing and is always open to new ideas, it is imperative that additional people with knowledge of electric vehicle technology be recruited. In addition, a large number of clients may need more education about the capabilities and advantages of electric vehicles, which may result in misunderstandings and a lack of faith in the product.
EV merchants need to make an investment in educating consumers about electric vehicle technology and the advantages of electric mobility in order to overcome this problem. Educating consumers about the product via activities such as workshops, roadshows, and test drives might fall under this category.
Community Awareness About the Product
The automobile service sector relies heavily on mechanics, who form its backbone; yet, there is a need for more understanding among technicians about electric vehicle technology. In addition, it is possible that a large number of technicians will need to be outfitted to handle repairs on electric vehicles, which may result in delays and a lack of confidence among consumers.
To find a solution to this problem, electric vehicle merchants will need to make investments in the education and certification of mechanics in electric vehicle technology. In this context, the term “collaboration” refers to working together with technical schools and institutions to provide certification and training programmes for mechanics.
Range Anxiety
Anxiety over the vehicle’s range is one of the most prevalent worries among prospective buyers of electric vehicles. In addition, it may be necessary to reassure buyers regarding the range of the car as well as the availability of charging infrastructure, particularly in more remote locations.
To find a solution to this problem, electric vehicle merchants will need to make investments in a reliable network of charging infrastructure. Setting up charging stations in important areas, such as roads, public parking lots, and commercial centres, might be one option here. To alleviate their consumers’ concerns about range, retailers might also provide clients with home charging alternatives.
Unfamiliarity
When it comes to buying automobiles, the conventional Indian mentality is still widely prevalent, and many buyers may need to be educated on the capabilities and advantages of electric mobility. In addition, consumers can have misgivings about the dependability and longevity of electric vehicles.
To find a solution to this problem, EV merchants need to educate their clients about the advantages of using electric transportation. In this context, “test drives,” “workshops,” and “roadshows” are all examples of activities that may be organised to acquaint clients with the product.
Safety Concerns
Customers place a high priority on safety, and electric vehicles (EVs), with their high-voltage batteries, provide a unique set of issues in this area. Customers can be worried about the security of the charging infrastructure as well as the possibility of fires breaking out.
To find a solution to this problem, electric vehicle dealers will need to make investments to ensure the safety of both their goods and the charging infrastructure. Among these measures might be the establishment of stringent safety regulations and standards for electric vehicles and charging facilities. Customers might get safety training and information from retailers on how to handle electric vehicles in a responsible manner.
Life of the Product
Because of the newness of the industry, there is insufficient information available about product longevity. Customers who are concerned about the lifetime and endurance of the car may be reluctant to make an investment in an electric vehicle.
To get over this obstacle, EV shops will need to make investments in order to provide consumers with information on the lifespan of the product. Providing warranties and guarantees on the battery and other components of the vehicle may fall under this category. In order to provide their consumers with the correct information, retailers should consider doing research and studies on the durability and lifetime of electric vehicles.
Push Marketing
To successfully sell their wares and services, electric vehicle merchants need to develop and implement efficient marketing strategies. Because electric mobility has its own set of obstacles, conventional marketing techniques may need to be modified to become more efficient in order to successfully promote electric vehicles.
To find a solution to this problem, EV shops will need to use push marketing methods that inform clients about the advantages of electric transportation. This may involve content marketing, influencer marketing, and social media campaigns, with the goal of supplying buyers with accurate and pertinent information about electric vehicles.
The business of selling electric vehicles has certain specific hurdles in India. Nevertheless, electric vehicle dealers in India can overcome these hurdles and accelerate the expansion of electric mobility in the country by investing in new solutions and implementing best practises. EV shops may also help speed the shift towards a cleaner and more sustainable future by offering consumers knowledge, safety, and dependable goods and services. This can help the industry as a whole become more environmentally friendly.
.){kind=link}