Over 6 in 10 consumers likely to choose EV as next vehicle: TCS global study

Around 64% of consumers in different parts of the world are likely or very likely to consider an electric vehicle (EV) for their next purchase, according to a study by Tata Consultancy Services (TCS).

The global study, which surveyed over 1,300 respondents across North America, the UK and Ireland, Continental Europe, and the Asia-Pacific region, found that 56% of them were willing to pay up to $40,000 (nearly Rs 35 lakh) for an EV. The respondents included transport manufacturers, charging infrastructure players, fleet adopters, consumers, and EV adoption influencers.

The majority of the EV manufacturers believe that charging infrastructure remains the biggest obstacle limiting the growth of the electric vehicle market. Also, 9 in 10 EV manufacturers said battery technology improvements to optimise range and charging speed will have a large impact on the design and performance of EVs.

The preferred range for EVs was 200-400 miles on a single charge.

More than 4 in 10 consumers felt that 200-300 miles was an acceptable EV range on a single charge, while 31% of the respondents felt 300-400 miles would be a "better deal".

The report, titled 'TCS Future-Ready eMobility Study 2025', also highlighted regional disparities in EV adoption.

While 72% of US consumers were "likely or very likely" to purchase an EV as their next vehicle, only 31% of Japanese respondents showed similar enthusiasm.

"The electric vehicle industry is at a defining crossroad, navigating the complexities of scale and transformation," Anupam Singhal, President, Manufacturing, TCS, said in a statement.

"While nearly two-thirds of consumers are open to choosing electric for their next vehicle, manufacturers face challenges like advancing battery technology, complex vehicle designs, and production economics," he added.

According to the survey, 55% of EV manufacturers are investing in research & development for battery technology advancements, while 78% are investing in vehicle cost reduction.