SaurEnergy Explains-India’s New Found Love for Premium EVs

India, traditionally an affordable car market, is witnessing a surprising surge in demand for expensive electric vehicles, particularly e-SUVs, crossovers, and luxury EVs.

This shift is intriguing, given the country’s long-standing preference for budget-friendly vehicles.

With prices of the recently launched cars beginning from ₹14 lakh ex-showroom for the MG Windsor to ₹30.5 lakh ex-showroom for Mahindra’s XEV 9e, India is not shying away from accepting future-ready and tech-loaded EVs over what was traditionally perceived as a highly price sensitive market.

A closer analysis reveals several factors driving this trend, from the latest technology automotive and battery technology on offer to evolving consumer aspirations.

The Changing Landscape of Indian Car Buyers

Historically, India’s automobile market has been dominated by affordable cars, with models like the Maruti 800, Alto, Wagon R and Hyundai Santro catering to the masses.

However, the rise of a more affluent middle class and increasing urbanization has led to a growing segment of buyers willing to invest in premium, more muscular and tech-loaded vehicles.

This shift is evident in the SUV segment, which accounted for over 50% of passenger vehicle sales in 2024. Yes, the craze for the Thar Roxx, XUV 700, Creta, Fortuner and the top dog Range Rover Defender is obscene.

The trend now extends to EVs, with models like BYD Atto 3 and Kia EV9 gaining eyeballs and traction, and MG Windsor and Mahindra BE 6 and XEV 9e getting record bookings.

The big, bold and beautiful design language of these new-gen EV platforms combined with their tech embellishments have enamoured the Indian buyer who showered their love and money by way of a whopping 30,179 bookings on the first day for the XEV 9e and BE 6 electric SUVs.

This love was a record-breaking expression of interest that converted to a booking value of ₹8,472 crore at ex-showroom prices.

Not a bad day in the office for Mahindra!

Assured Parking and Home Charging Infrastructure

One of the key enablers for the acceptance of expensive EVs is the availability of assured parking spaces or multiple-car home garages.

Unlike budget car buyers, who often lack dedicated parking and are forced to park on the streets or roads, premium EV buyers typically have access to dedicated and private parking, making it easier to install home fast chargers.

In gated communities, there are provisions for at least one and often two or three reserved parking bays and in homes with driveways and garages, space is available for multiple cars.

In many cities, builders and RWAs have also begun providing access to fast chargers inside the residential complex and housing societies, albeit for a higher fee.

Almost all EV companies offer free charger installation at home, and companies like Tata Power and Statiq have simplified the installation process, offering customized solutions for residential setups.

This convenience eliminates the dependency on public charging infrastructure, addressing a significant barrier to EV adoption.

These factors have a big role in the popularity and demand for the recently launched e-SUVs as buyers don’t mind spending more for the latest in auto tech as their trophy ride.

For the less privileged, challenges with home charging have also become a handbrake of sorts.

Often, buyers fail to do their pre-purchase checks and ignore the infrastructure challenges at home for installing fast chargers, of say 7 kW, as the sanctioned load of most homes in India ranges between 3-5 kW.

Gated communities and housing societies have even stricter restrictions for charger installations as their power infrastructure is not ready for the sudden surge in extra load demand that comes with home EV fast chargers.

Higher Sanctioned Load at Home

Premium EV buyers are more likely to have homes with higher sanctioned electrical loads, enabling the installation of high-capacity chargers.

Upgrading to a three-phase connection or increasing the sanctioned load is a common practice among this demographic, ensuring faster and often the option of installing multiple modes of charging.

The cherry on top: some living in independent homes or row houses even have access to rooftop solar-generated power to charge their vehicles, making it not only a no-brainer when it comes to buying an EV but if the budget permits, then why not the very best of that crossover e-SUV.

This readiness to invest in infrastructure reflects the financial capability of buyers in this segment and is perhaps the reason behind the growing appetite for the born EV generation of more expensive and luxurious electric cars, EVs and e-SUVs.

Access to Fast Chargers at Offices and Public Spaces

The proliferation of fast chargers in urban areas and office complexes has further boosted confidence among premium EV buyers.

Most office complexes in big cities and major towns have installed fast chargers inside their premises or basement parking. Even big shopping districts, malls and markets have public chargers.

This accessibility reduces “charge anxiety,” which has now overtaken “range anxiety” as the primary concern for EV owners.

Companies like Tata Power, Statiq, Exicom and Jio-BP have expanded their networks, making fast chargers accessible in key locations but India still needs a lot more public chargers and in working condition. Yes, these public EV chargers come with a caveat: there is no guarantee that the EV user will find it in working condition when needed.

A recent survey revealed that 88% of EV owners cited charging infrastructure as their main worry, highlighting the importance of reliable and fast charging options, especially the option of installing at home. Also a study revealed that out of 25,000 installed EV chargers in India, only 12,100 were operational as of February 2024.

Despite these aberrations, the EV buyer is well and truly hooked by the modern offerings of EV makers in India.

This story is likely to get even spicier with the imminent launch of Tesla, MG Cyberster, VinFast VF6 and VF7 and more models lined up for launch by Indian auto giants like Tata Motors with its Avinya, Harrier and Sierra; Hyundai Creta and Maruti e Vitara.

The Cool Quotient: Tech and AI-Enabled Features

The latest EV models are not just vehicles; they are tech marvels.

Born electric vehicles or BEVs like the Mahindra BE 6 and XEV 9e are equipped with cutting-edge features such as augmented reality or AR  heads-up displays, ADAS or AI-powered driver assistance systems, advanced AI suite, vehicle to load or V2L functionality, smart battery management, long range battery packs, auto park, and some even offering in-car cameras for video conferencing.

Luxury EVs like the Mercedes EQS and Audi e-tron offer advanced AI capabilities, including adaptive cruise control and predictive navigation.

And yes, the BE 6 can do 0 to 100 km/h in 6.7 seconds and the XEV 9e in 6.8.

These features enhance the driving experience and add a “cool quotient” that appeals to tech-savvy buyers who perhaps see their cars as the extension of their beliefs and lifestyle.

Trust me, once you have seen those influencer reviews, liked the zillion Instagram reels and have taken the test ride to experience the joy and comfort of a powerful and luxurious electric ride, you pretty much end up saying ‘take my money please’ to the sales executive at the showroom and walk away with that 10 kW grin knowing full well what you have just done.

The Appeal of e-SUVs and Crossovers

India’s love affair with SUVs has extended to the EV segment. e-SUVs and crossovers offer the perfect blend of space, performance, and style, making them highly desirable.

Tata, Mahindra, MG Motor, BYD, Kia, Audi and Mercedes cater to this demand, offering impressive model range and advanced features.

The higher ground clearance and robust build of e-SUVs and CUVs also make them suitable for Indian road conditions, further boosting their appeal.

Of course, the brand value of the car further adds to the ‘no nonsense’ personality of its owner perhaps.

E-SUVs and crossover SUVs cater to the Indian preference for spacious, versatile, and robust cars that can handle diverse terrains and long journeys, while also delivering enhanced fuel efficiency compared to traditional SUVs.

What sets e-SUVs apart is the advanced technology and premium features they bring to the table.

Unlike many ICE counterparts, e-SUVs are equipped with state-of-the-art safety systems such as ADAS, collision avoidance, and 360-degree cameras, offering a significant edge in safety.

Additionally, they boast superior comfort with features like AI-integrated infotainment systems, wireless connectivity, cockpit-like modern interiors which resemble a ‘space car’, and customizable seating positions and driving modes.

This fusion of practicality, cutting-edge technology, and luxury positions e-SUVs as an attractive choice for India’s growing segment of tech-savvy and safety-conscious buyers.

The Psychological Shift: From Cost to Value

For many buyers, the decision to invest in an expensive EV is driven by a shift in mindset.

The focus is no longer solely on the upfront cost but also on the long-term value. EVs offer lower running costs, reduced maintenance, and the promise of sustainability.

Additionally, the premium segment often includes features like extended warranties and free charging credits, adding to the perceived value.

The Influence of Global Trends

India’s premium EV market is also influenced by global trends. The success of Tesla and other luxury EV brands has created a ripple effect, with Indian buyers aspiring to own similar vehicles.

The entry of global players like Volvo and BYD into the Indian market has further fueled this aspiration.

What’s Next?

All reasons taken together, the sudden demand for expensive EVs in India is a result of multiple converging factors ranging from evolving consumer aspirations, AI-led technological advancements, exclusive EV-only features, perceived global coolness factor and then the eternal truth—Indian companies offering good-looking e-SUVs and crossovers that offer all of the above vs. the global giants.

While India remains predominantly an affordable car market, the rise of premium EVs signals a shift in consumer behaviour and a growing acceptance of electric mobility.

As more players and models enter the market, this trend will gain momentum, paving the way for a greener and more sustainable future.

Now, if only the charging infrastructure and especially–foolproof policies for installing home chargers can keep pace with the booking records of the new vehicles.

By Arrangement with Goelec.in