TCS Study Reveals Growing Consumer Interest in Electric Vehicles and Key Industry Challenges

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TCS Study Reveals Growing Consumer Interest in Electric Vehicles and Key Industry Challenges

A recent study conducted by Tata Consultancy Services (TCS), a global leader in IT services and business solutions, reveals that 64% of consumers are likely or very likely to consider an electric vehicle (EV) for their next purchase. The TCS Future-Ready eMobility Study 2025 offers an in-depth analysis of how EVs are influencing the future of sustainable mobility, shedding light on both opportunities and challenges within the EV industry.

Consumer Sentiment and Spending

Despite the growing interest in EVs, challenges surrounding infrastructure and costs remain significant barriers:

Charging Infrastructure: 60% of respondents identified inadequate charging networks as a major hurdle.
Affordability: 56% of consumers expressed a willingness to pay up to approximately RM186,400 for an EV.
Range Expectations: Preferences for EV range varied, with 41% favouring a range of 322–483km per charge and 31% preferring 483–644 km.

The survey encompassed over 1,300 participants from North America, the UK, Europe, and the Asia-Pacific region, including transport manufacturers, charging infrastructure providers, fleet adopters, consumers, and EV adoption influencers.

Drivers of EV Adoption

Key motivations driving EV adoption include:

Sustainability: Consumers and influencers highlighted the environmental benefits of EVs. However, 48% of influencers raised concerns about their overall carbon impact.
Operational Efficiency: Among commercial fleet adopters, 53% cited reduced operational costs as a primary motivator, with many expressing a willingness to pay a premium for EVs compared to internal combustion engine (ICE) vehicles.

Industry Perspectives and Innovation

Earl Newsome, Global Chief Information Officer at Cummins, emphasised the transformative potential of EVs:

“The future of mobility is electric, connected, and sustainable—a transformation that will redefine industries and communities alike. At Cummins, we are dedicated to advancing industry-wide decarbonization with diverse power solutions.”

The study also highlights manufacturers’ priorities:

Battery Technology: 90% of EV manufacturers believe that advancements in battery technology, such as improved range and faster charging, will significantly enhance EV design and performance.
Cost Reduction: 78% of manufacturers are actively investing in lowering vehicle costs to meet rising demand.
Charging Infrastructure: 74% of respondents identified the lack of charging infrastructure as the largest obstacle to EV adoption.

Anupam Singhal, President of Manufacturing at TCS, stressed the importance of collaboration and innovation:

“The electric vehicle industry is at a defining crossroads. At TCS, we focus on creating interconnected ecosystems powered by AI to deliver scalable, sustainable solutions and accelerate the shift toward electrified transportation.”

Regional Trends and Market Dynamics

The survey highlighted notable regional differences in EV adoption:

North America: 72% of U.S. consumers are likely to purchase an EV as their next vehicle.
Asia-Pacific: In Japan, only 31% of consumers expressed a similar sentiment.

The report also predicts significant industry consolidation, with 72% of EV charging infrastructure providers expecting mergers due to financial and scaling challenges.

TCS: A Vision for Sustainable Mobility

For over two decades, TCS has been a strategic partner to original equipment manufacturers (OEMs), supporting the transition from ICE to EV. Key contributions include:

Deployment of Battery Management System (BMS) software in over 500,000 EVs globally.
Establishment of EV charging infrastructure in more than 75 countries.

By leveraging technological innovation, strategic collaboration, and industry expertise, TCS is helping manufacturers and stakeholders navigate the EV revolution, paving the way for a more sustainable future.