While on a flight back from the Tokyo Motor Show, which has now been renamed the Japan Mobility Show, I witnessed the future EVs from the Japanese auto giants Nissan, Toyota, and Suzuki. One thing that stands out is that car designs have changed gradually over the last 100 years, with some cosmetic and technological changes, allowing them to be driven today and still blend in. The future EVs, however, look like they were designed by robots and lack a human touch. They all share a similar design language, and without badges, it’s difficult to distinguish between them. Why is it so important to make an EV look like it dropped from Mars? A Hyundai Creta with an EV soul would connect better. Any change should be gradual, not sudden. First, as a race, we have to come to terms with a completely new concept of charging rather than refueling. These space-age designs make it more complicated. The adoption of EVs, especially in the luxury space, is not very exciting, and in the USA, there is a big pile-up of EV inventory.
Charging infrastructure globally continues to be a challenge. It’s not just a “fill it, shut it, and forget it” approach, like you get with gasoline cars for a cross-country drive. All potential luxury EV buyers are well-read and understand that in 5-8 years, the price of EVs can drop, and their resale value will be uncertain. On the other hand, some super luxury cars are appreciating assets. For example, the Lamborghini URUS, which was at an ex-showroom price of 3.24 crores last year, is now 4.24 crores with a few design changes—a one crore increase in just one year! G-wagons continue to command high prices in resale, but will the EV G-wagon command the same?
The shine on EVs and the sustainability angle are losing their sheen. BMW is testing hydrogen cars, and most hybrids have long waiting lists. The price bracket of Rs 10-15 lakhs has very few EVs on offer, and Tata Nexon continues to top the charts in the EV segment. But the question remains: 2030 is not very far, how prepared are we to charge our world?
On the other hand, there are niche cars that don’t get the recognition they deserve. One such car is the Jeep Grand Cherokee, which competes with the Mercedes GLC, is much bigger, and can also be taken off-road, with the added feature of a second screen for the co-passenger. The Audi RSQ8 is like the Lamborghini Urus in a different suit, and the Volvo XC90, which costs 50 lakhs less than the X7, offers 7 seats and luxury. However, for luxury buyers, badge value continues to be crucial. If you’ve earned the money, you want the badge to do the talking. The concept of value proposition doesn’t apply here. Perhaps one day, as they say, consumers are not dumb, they are your wives! And the day wives’ fetish for Hermes bags starts to decline, the rise of cars like the Grand Cherokee might happen. Enjoy the issue and the festivities.
