Recently, the Boston Consulting Group (BCG) has published a report on the consumer landscape of the E2W market in India titled ‘Surging ahead: How electric two-wheelers are rapidly gaining popularity with the diverse Indian consumer’.
The report focuses on finding ten diverse "demand spaces," each defined by specific consumer needs and usage patterns. As per the study, the choice of 2W is shaped by factors such as the distance travelled and the travel purpose, rather than by demographics. Some demand spaces are form factor-led while some have a fair mix of form factors. This approach recognizes the varied functional and emotive needs of consumers, from those seeking basic transportation to others demanding high-performance.
The report delves into the two-wheeler consumers, surveying nearly 2750 respondents to uncover what it will take to further push the E2W revolution in India. As per the study, currently one in three potential 2W buyers are actively considering electric two-wheelers. The study marks a contrast to an earlier research from 2021, highlighting varied growth in the adoption of 2Ws across demand spaces with a few of them being early adopters vs. a few lagging behind in the adoption curve due to unmet needs.
The report also highlights the strategies for players and providers to grow their market share. The first is prioritizing target value pools, which helps in understanding the OEMs about the diversity of consumer demand spaces and to prioritize their target consumer demand spaces. OEMs need to tailor their approach to these target demand spaces with the right product offering and positioning.
The second is, innovating go-to-market (GTM) Strategies, where manufacturers need to seamless customer journey, innovate on pricing/alternate ownership, build the right charging / swapping network and revisit their service network approach. Adding to that, orchestrating the partnership ecosystem aid in vehicle lifecycle services and mobility solutions, is a key lever for success.
And the last is, building organizational capabilities which re-design organizational capability while taking thoughtful decisions on in-housing vs. partnering is critical to build sustainable competitive advantage.
“Success in the E2W business will need a clear and nuanced understanding starting from customer needs. A well-defined go-to-market approach with a seamless 'phygital' journey is clearly emerging as a critical customer need. Creating a complete ecosystem of offerings such as vehicle lifecycle services, ancillary plays and mobility offerings will also help drive a strong customer experience.” Natarajan Sankar, Managing Director and Partner at BCG, said.
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