The Indian mobility industry is projected to surpass $600 billion by 2030, according to the Think Mobility report released by Google and Boston Consulting Group (BCG) at the Bharat Mobility Auto Expo.
The report highlights India’s unique trajectory in the mobility sector, with traditional and emerging revenue streams shaping a departure from global trends.
The report reveals a growing demand for electric vehicles (EVs), with one in three consumers considering them for their next purchase. However, preferences differ sharply between electric four-wheelers (E4Ws) and electric two-wheelers (E2Ws). While E4W buyers value advanced technology, sophistication, and exclusivity, E2W consumers prioritise practicality, comfort, and affordability.
Remarkably, women are becoming a driving force in the EV market, influencing 52 per cent of purchase decisions, up from 38 per cent in the internal combustion engine (ICE) segment.
Emerging mobility models like electric, shared, and connected solutions are expected to generate an additional $100 billion, signalling a significant shift in consumer priorities.
Vikram Janakiraman, managing director and senior partner at BCG, emphasised the importance of adapting to rapid changes in consumer demands.
“Successful players will need to study and frequently adapt their product, solutions and experiences to suit these unique needs; Integrating Digital, Tech and AI will be critical to doing that,” he said.
Gen Z is emerging as a transformative force, with its members 2.7 times more likely to choose self-drive rentals compared to older generations. Self-drive rentals and subscription models are gaining traction, with 85 per cent of users expressing interest in purchasing the vehicles they rent.
Meanwhile, digital purchase journeys are outpacing traditional methods, driven by a growing demand for personalisation.
Bhaskar Ramesh, director of omni channel businesses at Google India said, “From pre-purchase to in-vehicle experiences and after-sales services, we see immense potential for AI to deliver meaningful experiences and create real value for consumers. We’re excited to collaborate with the industry to drive innovation and growth in this space.”
The report also notes a shift in perceptions of used cars. One in four first-time car buyers is now considering pre-owned vehicles, with lifestyle upgrades, rather than cost-saving, emerging as a key motivator.
“Already the third-largest automobile industry, India is on the cusp of transformative change over the next few years. Effectively harnessing global innovations in EVs, digital, and AI is more critical than ever for OEMs. To succeed, they must align their offerings with the distinct demands of Indian consumers,” said Natarajan Sankar, managing director and partner at BCG.
The Think Mobility Report draws from comprehensive research, including insights from over 4,500 Indian consumers, leading automotive manufacturers, and proprietary data analysis, making it a valuable resource for driving India’s mobility revolution.
