The EV market has seen its all-time high in 2022 with a 223% growth in its Electric Vehicle sales. This is further expected to grow at a CAGR of 44.5% between 2020 and 2025. Despite the soaring demand, customer apprehensions on multiple factors are posing as detrimental to the vast adoption of Electric Vehicles. As per a research report by ACKO and YouGov India- ‘Is the Future Electric?’, over 49% of EV car owners believe that battery replacement costs form a substantial part of EV ownership. Additionally, while 66% of the respondents assume that battery life only lasts between two to five years, a majority of EV users believe that charging behavior has a definite role to play in the vehicle’s battery life.
With this insight, ACKO aims to create an infrastructure for the EV landscape by partnering with OEMs and offering comprehensive insurance plans to the customers. This will address the existing pain points and thereby bring a radical disruption in the fast-evolving EV industry.
ACKO’s Extended Battery Warranty plan assuages customer concerns around the battery life and performance. The partnership with OEMs will improve the EV affordability where the banks will be able to extend the loan duration for vehicles and thus reduce the EMI installments. The plan protects the battery life till the fourth or the fifth year and provides performance coverage for up to 60,000 kms. Under the comprehensive plan, EV components are also covered in addition to the battery. The uniqueness of the plan is that it is transferable to the new owner in the event of sale. The cost visibility factor for the battery and other parts of the vehicle enables a better resale value.
Speaking on the partnership, Animesh Das, VP – Motor Underwriting, ACKO, said,“The Indian EV journey is an aggressive growth story which has propelled the demand for customized protection solutions amongst customers. Our research report found a demand for these solutions from 79% of the respondents. The report also underlined that 67% of EV owners want to own an insurance policy with their Electric Vehicles. This is a positive sign from the new age customers who have evolved preferences and want to adopt environmentally safer alternatives for the ecosystem. We are confident that with our partnership, OEMs will be better equipped to answer the doubts in customer minds about longevity and performance of the Electric Vehicle. This will indeed ease the lives of our customers and promote a nationwide rapid adoption of EVs”.
ACKO continues to disrupt the EV space by innovating more products and exploring partnerships with multiple other OEMs to provide a comprehensive coverage for EVs.
