Our goal is sustainable profitability

Any conclusions you’ve seen about how the market has evolved over the past five years?
I am very interested in how some global trends are manifested in markets like India. I think it’s really interesting that every OEM is now thinking about what their EV game is, and while there is a global strategy, it’s worth appreciating that OEMs are also taking into account what’s happening in individual markets. While the infrastructure doesn’t yet necessarily exist in terms of discussing battery replacement or other ways to bring them to market, I think the question arises – how does this happen. So I think a lot of manufacturers are trying to figure out their strategies as to what consumers want and how they’re going to meet those requirements, as individual markets may have some differences from other global markets.

The data services offered by Jato are clearly more than just a broad brush of typical forecasting. Is it really up to the level of specifications, is that your strength?
That’s right. One of them is the level of specifications, which in combination with data on price and volume allows us to understand the preferences of consumers in the future. So I don’t have to rely on what they tell me. I can just watch. Therefore, our data research teams are currently adopting detailed and reliable specifications and voluminous data for analysis. As the data will be reduced to very specific functions, we can begin to express which ones are most valuable and compelling. As we begin to track EV features and identify new ones at a detailed level, this provides us with a foundation for the next generation of value improvements regarding EV features and how they play with the already anticipated features that are in ICE cars.

You said you can analyze future trends by looking at what the consumer is doing. Is there something unique in Indian consumer that stands out from other markets?
There are a few things. First, Indian consumers want a lot less. You see elements of this in other markets, but it is the predominant factor in India. Second, relatively speaking, Indian consumers hold on to vehicles for less time. Now more prestige is being exchanged for new cars. We also see a dynamic interaction between two- and four-wheeled vehicles in India that is not found elsewhere.

What is interaction?
If you look at penetration, for two-wheeled vehicles it is quite high, but can reach saturation points. Thus, we study how this affects the growth of sales of four-wheeled vehicles. We can’t say for sure that it has reached a saturation point, but we are looking at how the interaction between the growth or slowdown in two-wheeler sales is happening with four-wheeler sales. I think this is an interesting dynamic that is not available in other markets.

Are you saying that in India, in automation, customers miss two-wheelers and go straight to cars?
We are not sure. First, there is some slowdown in the two-wheeled sector as households that already have two-wheeled vehicles switch to four-wheeled transport. Second, as the cost of four-wheelers continues to decline, it is easier for people to buy them. The jury has not yet found out the reason, but the fact is that in no other market the production or replacement of two- and four-wheeled vehicles is not so dynamic.

Do you see faster adoption of EVs than what people think, and is there anything you can predict that will enter the market faster or slower?
We see a few things. First, we will see a group of first fans. We’re already starting to see this now, and I think it’s more about what EV means in general, rather than about specific performance as such. In order for it to become mainstream, it will be more based on what type of ecosystem it operates in. Because to get average users, he will need to impress the usage options and the cost of buyers. It is one thing for the first users to help with the carbon footprint, and another thing if someone chooses this particular car because it fits their specific uses. If these usage options are not supported by the ecosystem charging and replacing the battery, this will be a problem. This is true for all markets – for a wider base it will need environmental support. By environmental support I mean the inclusion of an environment that you see in some major markets. It will start with the big cities first, as you will have the infrastructure support to make EV a reality.