2025 to Be the Year of Electric Vehicles, Says TCS Global Study

The transition to electric vehicles (EVs) is set to accelerate in 2025, as a new study by Tata Consultancy Services (TCS), a provider of IT services and business solutions, reveals that 64 percent of consumers are likely or very likely to consider an EV for their next vehicle purchase.

The findings, released at the Detroit Auto Show, offer valuable insights into the future of sustainable mobility and highlight both the opportunities and challenges facing the electric vehicle ecosystem.

As per the firm's statement, the TCS Future-Ready eMobility Study 2025 surveyed more than 1,300 respondents across North America, the United Kingdom  and  Ireland, Continental Europe, and the Asia-Pacific region, including countries like China, India, and Japan. The study, which captured feedback from consumers, transport manufacturers, fleet adopters, and EV influencers, indicates that sustainability and lower operational costs are the main factors driving EV adoption.

However, the study says that despite the growing enthusiasm for electric vehicles, significant challenges remain, particularly in the realm of charging infrastructure. Around 60 percent of consumers surveyed identified the lack of sufficient charging stations as a major obstacle. In fact, 74 percent of EV manufacturers share this concern, stating that the absence of robust charging infrastructure remains the biggest barrier to EV market expansion.

However, the survey also highlighted that 56 percent of consumers are willing to pay up to USD 40,000 for an EV, suggesting a strong market potential for premium electric vehicles. The willingness to invest in EVs reflects consumers' commitment to environmental sustainability, despite concerns over charging accessibility and range limitations.

Environmental concerns are the primary motivation for EV adoption among consumers and influencers alike. According to the survey, 63 percent of EV influencers cite the achievement of net-zero emissions and the reduction of carbon footprints as the driving force behind the transition to electric mobility. However, the study also revealed a contrasting view, with nearly 48 percent of EV influencers expressing doubts about the environmental impact of electric vehicles. They argue that the overall carbon output of EVs may be comparable to or even higher than traditional internal combustion engine (ICE) vehicles, largely due to the carbon-intensive manufacturing processes and energy sources used for charging.

The study found that commercial fleets are particularly bullish on electric mobility, with 53 percent of fleet adopters identifying reduced operational costs as their primary motivation for transitioning to EVs. Fleet owners are more willing to pay a premium for electric vehicles compared to traditional ICE vehicles, viewing EVs as a long-term investment that offers savings on fuel and maintenance.

As the electric vehicle market continues to evolve, improvements in battery technology are expected to play a pivotal role in shaping the future of EVs. 90 percent of EV manufacturers and 84 percent of EV influencers agree that advancements in battery technology—specifically to optimise range and charging speed—will significantly impact the design and performance of electric vehicles in the near future. In fact, 55 percent of manufacturers are already investing in research and development (R&D) for battery technology, with 78 percent focusing on reducing vehicle costs to cater to the growing demand for affordable EVs.

The survey revealed significant regional differences in the likelihood of consumers adopting EVs. In the United States, 72 percent of consumers expressed a strong interest in purchasing an electric vehicle as their next car, while in Japan, only 31 percent of respondents were inclined toward choosing an EV. Among consumers, the most preferred EV range on a single charge was 200-300 miles (41 percent), followed by 300-400 miles (31 percent).

As the global automotive industry moves closer to achieving widespread EV adoption, the role of technology and collaboration will be crucial in overcoming the challenges faced by manufacturers, consumers, and stakeholders.

Earl Newsome, Global Chief Information Officer at Cummins, highlighted the industry's direction, stating, “The future of mobility is electric, connected, and sustainable—a transformation that will redefine industries and communities alike.” He emphasised that this transformation will require resilience, innovation, and collaboration."

Anupam Singhal, President of Manufacturing at TCS, underscored the importance of addressing challenges like advancing battery technology, complex vehicle designs, and production economics. He said, “The electric vehicle industry is at a defining crossroads. While nearly two-thirds of consumers are open to choosing electric for their next vehicle, manufacturers face challenges that need to be overcome to drive the global shift toward electrified and sustainable transportation.”

As per the firm, TCS, with its deep expertise in AI and generative AI, is committed to creating an interconnected ecosystem to accelerate the adoption of sustainable mobility solutions. The company has been a strategic partner to Original Equipment Manufacturers (OEMs) for over two decades, helping them transition from internal combustion engine vehicles to electric vehicles. TCS has been involved in deploying Battery Management System (BMS) software for over 500,000 EVs globally and establishing EV charging infrastructure in more than 75 countries.