A significant shift in consumer preferences is poised to reshape the automotive industry, as over 64% of potential buyers express a strong inclination towards electric vehicles for their next purchase in 2025. This insight emerges from the Tata Consultancy Services Future-Ready eMobility Study 2025, unveiled at the Detroit Auto Show.
The comprehensive study surveyed more than 1,300 respondents across North America, the United Kingdom and Ireland, Continental Europe, and the Asia-Pacific region. Participants included transport manufacturers, charging infrastructure providers, fleet operators, consumers, and EV adoption influencers. The findings underscore a growing global enthusiasm for EVs, driven primarily by sustainability concerns and potential cost savings.
Despite the positive trend, the study highlights notable challenges hindering broader EV adoption. Approximately 60% of consumers identified inadequate charging infrastructure as a major barrier, while 56% indicated a willingness to invest up to $40,000 in an EV, suggesting that cost remains a critical consideration.
From the manufacturers’ perspective, the transition to electric mobility presents its own set of obstacles. A substantial 74% of EV producers cited the insufficient charging network as a primary impediment to market growth. In response, 55% are channeling investments into advanced battery technologies, aiming to enhance vehicle range and reduce charging times. Moreover, 78% of manufacturers are prioritizing cost-reduction strategies to make EVs more accessible to the average consumer.
Anupam Singhal, President of Manufacturing at TCS, emphasized the company’s commitment to facilitating this transition: “For over two decades, TCS has been a strategic partner to original equipment manufacturers, supporting their shift from internal combustion engines to electric vehicle technology.” TCS’s contributions include deploying battery management system software in over 500,000 EVs worldwide and assisting in establishing EV charging infrastructure across more than 75 countries.
The study also sheds light on regional variations in EV adoption. In the United States, a remarkable 72% of consumers are likely to consider an EV for their next vehicle, reflecting a robust domestic market. Conversely, in Japan, only 31% of consumers expressed similar intentions, indicating potential cultural or infrastructural factors influencing these decisions.
Fleet operators are also recognizing the benefits of transitioning to electric. Data indicates that 53% of commercial fleet owners are optimistic about the lower operational costs associated with EVs compared to traditional internal combustion engine vehicles. This shift not only promises economic advantages but also aligns with global sustainability goals.
However, the path to widespread EV adoption is not without hurdles. The study reveals that while there is a clear consumer interest, concerns about charging infrastructure and vehicle costs persist. Addressing these issues requires a collaborative effort among manufacturers, policymakers, and infrastructure developers to create a conducive environment for EV growth.
Technological innovation stands at the forefront of overcoming these challenges. Manufacturers are investing heavily in research and development to produce batteries that offer longer ranges and shorter charging times. Additionally, advancements in battery management systems are enhancing the efficiency and lifespan of EV batteries, making them more reliable for consumers.
Infrastructure development is equally critical. Efforts are underway globally to expand the network of charging stations, particularly in urban areas where demand is expected to be highest. Public-private partnerships are emerging as a viable solution to fund and accelerate the deployment of charging infrastructure.
Policy interventions also play a pivotal role in this transition. Governments worldwide are introducing incentives such as tax rebates, subsidies, and stricter emission regulations to encourage both manufacturers and consumers to embrace electric mobility. These measures aim to reduce the financial burden on consumers and stimulate market demand.
The automotive industry’s supply chain is undergoing a transformation to meet the demands of EV production. This includes securing sustainable sources of raw materials for batteries and establishing recycling programs to manage battery disposal responsibly. Companies are exploring innovative solutions, such as blockchain technology, to ensure transparency and ethical sourcing in the supply chain.
