Electric vehicles (EVs) have long been perceived by the masses as niche products. Hence, they’ve traditionally been targeted towards tech-savvy consumers. Only recently did this trend start shifting , with new demographics beginning to show an interest in EVs– until the pandemic struck. As we head down the path of recovery, questions remain on how the EV market will take shape in the years to come. Despite the progress in the EV business worldwide, three key challenges still act as roadblocks for the go-to-market strategies of manufacturers. Here’s how we are overcoming them.
Today, governments of major countries are committed to the Paris Agreement and offer sizable incentives for EV growth. As companies keep taking advantage of this, sales of EVs are bound to increase in the near future. This, in exchange, could lead to governments reducing subsidies, which could again pose a big challenge to the industry. If we take the Indian example, the FAME II scheme that was launched in 2019 was a step in the right direction. It earmarked an outlay of Rs. 10,000 crore for boosting electric mobility and increasing the number of electric vehicles in commercial fleets. Rs 1,000 crore of that amount has also been directed towards setting up charging stations for electric vehicles in India. When such schemes start showing results, and when eventually these subsidies get reduced, the EV infrastructure of Indian manufacturers, including ours, will have developed to a stage where the go-to-market journey wouldn’t be as demanding in terms of cost as it is today. This will help a great deal in balancing the costs.
Modern consumers are very much aware of the environmental benefits of EVs but there are a few other roadblocks that they find hard to overcome. One of those is high upfront costs. Apart from pricing all our e-bikes competitively, we are constantly educating our potential customers about how the lifetime costs of EVs are much less due to their low maintenance costs. Range anxiety, or the fear of running out of battery in the middle of nowhere, is another barrier to EV adoption. We make strategic efforts through our social channels to talk about how we are working with the government to amplify the EV charging infrastructure around the country. To sum it up, spreading awareness about EVs and their benefits is one of our main focuses when it comes to our go-to-market strategy.
EV manufacturing requires huge investments. And since they need significantly less after-sales service compared to regular vehicles, revenues are also low over the long term. As a result, profitability remains a big risk. At Kabira Mobility, we have plans in place for maintaining profitability without affecting our business. On-demand services and revenue from charging are two such factors that we plan to rely on in the future.
The go-to-market strategies of EV manufacturers may be enough to survive the initial stages of the EV boom, but keen planning for the future is required and that’s what Kabira Mobility is doing.