India's transition to a net-zero society is a complex endeavor that hinges not only on innovation and improvements in low-carbon technologies but also on the willingness of people to embrace them. While often overlooked, both individual and collective action play a crucial role in reducing greenhouse gas emissions across key sectors such as energy generation, electricity consumption, and mobility.

Unlocking the Potential of Sales for a Greener India

India's Mobility-Related Emissions Challenge

In India, mobility-related emissions have witnessed a significant increase of 224 percent between 2000 and 2019, contributing to one-fifth of Indian households' carbon footprints. The rapid urbanization and rising incomes have led to a surge in households acquiring private, motorized vehicles. However, innovations in the mobility sector, particularly in road transport electrification, hold great promise for advancing decarbonization goals. According to the International Energy Agency, "A battery electric car sold in 2023 will emit half as much as conventional equivalents over its lifetime." This has sparked the interest of governments worldwide, including India, which has set targets of 30 percent of private car sales and 80 percent of private two-wheeler sales to be electric by 2030. To achieve these goals, it is essential to motivate customers to adopt this new technology.

Recent research by the Centre for Social and Behaviour Change (CSBC) at Ashoka University reveals that gaps in awareness, misinformation, and high upfront costs are the main obstacles preventing Indian households from adopting low-carbon technologies like electric vehicles (EVs). Overcoming these barriers requires policy changes, addressing structural challenges such as cost, and improving communication to dispel misinformation and inform consumers about the operations, cost savings, and benefits associated with EVs. While many prospective buyers rely on word-of-mouth and social media to learn about electric mobility, enhanced sales practices can play a significant role in driving adoption.

The Role of Sales Agents in Low-Carbon Technology Adoption

Sales agents serve as the first point of contact with customers and are well-positioned to address their concerns. When it comes to EVs, sales agents can alleviate range anxiety, explain long-term cost savings, and provide an overview of available incentives and policies. They can act as reliable sources of knowledge in a crowded marketplace. However, there is limited research on the role of sales agents in encouraging the purchase of low-carbon solutions.

To address this, the Low Carbon Lifestyles Project was initiated at CSBC to study why households do not adopt low-carbon technologies and lifestyles. One focus area was EV uptake and the barriers at car dealerships. Conducted in Delhi, a city with high EV penetration and extensive incentives, the study aimed to uncover the role of sales agents in shaping consumer decisions. The research used mixed methods to evaluate how sales agents convey information about EVs and influence consumer choices. It involved in-depth interviews with dealership managers and sales representatives and "mystery shopping" to assess EV promotion.

Key Findings on Sales Agent Challenges

1. Lack of Knowledge: Insufficient knowledge about EV technology is a primary obstacle. Approximately 80 percent of sales agents reported receiving training, but mystery shopping revealed knowledge gaps about government incentives, long-term cost savings, and charging infrastructure. This lack of knowledge leaves potential customers uncertain and reinforces biases. For example, many agents were unaware of public charging stations in Delhi, and customers focused on the high upfront cost of EVs, overshadowing future savings.

2. Inherent Suitability Bias: Agents exhibit internal biases that limit their ability to promote EVs. "Suitability bias" leads agents to target certain customers based on factors like occupation and current vehicle ownership, excluding potential buyers. For instance, mystery shoppers were not shown EVs unless they asked, and agents discouraged first-time buyers from considering EVs. This assumption that customers buy EVs only for financial reasons ignores social and environmental motivations.

3. Structural Challenges at Dealerships: Other challenges at dealerships also hinder sales agents. Limited availability of non-luxury EV models and low inventory during the study constrained agents' ability to suggest EVs. Customers with specific preferences couldn't find suitable models, and the scarcity of test drives deterred potential buyers. These issues are often beyond the agents' control and require system-wide changes.

Strategies to Improve Sales Effectiveness

1. Training and Sales Scripts: Sales scripts and better training can equip agents with the knowledge to communicate effectively with customers. Car companies can develop context-specific or regional scripts that include details on local incentives, cost savings compared to fuel, and charging infrastructure. This will help agents engage with customers, dispel misinformation, and overcome barriers to EV adoption.

2. Experiential Events for Sales Agents: The private sector can organize experiential events where sales agents can actively engage with EVs. This can help eradicate biases and improve their familiarity with the product. For example, hosting EV test drives for sales agents can address assumptions about EV performance and operations. A 2022 update to a 2017 study in Sweden also recommends boosting EV adoption within dealerships through tools like discounted short-term employee EV leases.

3. Guidelines for Identifying Early Adopters: Agents often rely on suitability bias to identify target customers. Car companies can develop guidelines based on research on early EV adopters' demographics, values, and beliefs. This will help agents recognize a broader range of prospective buyers and focus on those motivated by the environment or new technologies.

4. Collaborate with the Government: Government support is crucial for EV adoption. The government can expand public charging infrastructure and design incentives to make EVs more affordable. Car companies and sales agents can collaborate with government agencies to standardize cost-related communications on government portals and provide transparent information about waivers, subsidies, and other incentives.

Addressing transportation-related emissions is a top priority for India to achieve its net-zero goals. Electric mobility is essential for reducing greenhouse gas emissions, and all stakeholders must work together. While policy and planning are important, sales also have a vital role in nudging individuals to adopt low-carbon technologies and move away from the status quo.