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New mobility is gaining momentum in India with emerging revenue pools such as electric, shared and connected mobility predicted to contribute $100 billion to the nation’s mobility market by 2030.
This is part of a larger forecast from Google and Boston Consulting Group’s (BCG) joint report which predicts India’s overall mobility market to surpass $600 billion by 2030.
The report titled ‘Think Mobility’ uses feedback from more than 4,500 respondents who own or intend to own either a 2-wheeler or 4-wheeler to shed light on the future of mobility in India.
“India continues to be strong on the macro-basics of auto and mobility demand,” BCG Partner Monil Modi told Zag Daily. “Growing affluence means we expect increasing household incomes which will drive up private consumption. This is coupled with a demonstrated push of infra expenditure by the government, where there’s been double the growth from 1.6% to 3.2% of GDP in the past five years.”
On why electric, shared and connected mobility is becoming well-suited to the Indian market, Monil highlights key shifts taking place in the nation’s mobility space.
Firstly, 1 in 3 Indian consumers are considering an electric vehicle as their next purchase. Women are contributing to the electric shift, with 52% of EV decisions driven by women, compared with 38% for internal combustion engine vehicles.
There’s also a willingness to pay a premium for practical, utility and safety-led features which is expected to attract investment in software and autonomous technologies. The report states that Indian consumers’ needs differ from overseas markets, with approximately 80% demand for infotainment and real-time parking assistance.
Monil also highlights a high intent for shared mobility such as self-drive rentals and subscriptions, especially amongst younger cohorts.
“With all this – we see a tech-led mobility future, but one that stays true to practical demands of Indian customers,” Monil said.
Bhaskar Ramesh, Director of Omni-Channel Businesses at Google India, said: “The industry is undergoing a major transformation, reimagining the entire ecosystem. With new ways to drive profits and shifting customer preferences – led by Gen Z and women – digital purchase journeys are outpacing traditional ones, driven by the growing demand for personalization.
“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.”
