Consumer Behaviour Towards Electric Vehicles
Consumer Behaviour Towards Electric Vehicles
Abstract:
(Kotler & Keller, 2007) Consumer behaviour analysis examines the decision-making
process of individuals, groups, and organisations as they select, get, use, and dispose of products,
services, ideas, or experiences to satisfy their wants and needs.
The consideration of individual variations in decision-making styles is crucial in research
studies. All of these conceptions of consumer behaviour emphasise the significance of
comprehending it in order to enhance three specific domains:
The automobile industry, which has been in existence for nearly a century, is preparing
for a significant transition. The rise in fossil fuel expenses and the consequent ecological
consequences of its discharges have necessitated a modification in personal transportation
practices. The automotive industry, driven by internal combustion engines, is progressively
transitioning towards EVs.
EVs are propelled by electric motors, which are powered by a rechargeable battery or
another portable energy storage device. These vehicles demonstrate exceptional energy
economy, leading to minimum emissions of GHGs and reduced levels of noise. The many
categorizations of EVs are as outlined below:
“Hybrid electric vehicles (HEVs) utilise both fuel and electricity as sources of power,
incorporating an engine and an electric motor. The battery is charged by the braking system,
which generates electricity.
PHEVs, or plug-in hybrid electric vehicles, are similar to HEVs (hybrid electric vehicles) but
differ in that they possess a smaller engine and bigger battery capacity. The batteries are
recharged either by regenerative braking or by connecting to an external electric charging source.
BEV: Battery Electric Vehicles (BEVs) do not have internal combustion engines and instead rely
on electric motors for propulsion. These vehicles utilise batteries as their primary energy storage
mechanism. They rely on external power outlets to recharge the battery. These vehicles are
alternatively referred to as plug-in vehicles, EVs, or battery electric vehicles (BEVs).
The transportation industry accounts for around 25% of greenhouse gas (GHG)
emissions. Automobiles are the main contributors to greenhouse gas (GHG) emissions globally.
China is responsible for producing 25.9 percent of these emissions, followed by the USA at
13.87 percent, and India at 7.45 percent.(Khurana et al., 2020)”
The aim is to identify the impact of various factors on consumer purchase intentions of electric
vehicles (EVs) in India.
Objective:
Literature Review:
The rapid increase in population and urbanization has led to a substantial rise in the
overall need for automobiles. The majority of cars in India run on conventional fuels, which
release harmful gasses and particles, leading to adverse effects on human health and the
environment. Urban air pollution in most Indian cities has been seeing a substantial and rapid
increase, mostly attributed to the continuous growth in the number of automobiles on the roads.
According to a KPMG analysis, it is expected that by 2030 there will be a full-scale adoption of
electric vehicles, leading to a significant decrease in pollution caused by conventional cars.
However, coal thermal power plants were responsible for 57.3% of electricity generation in
India. Without a doubt, the combustion of coal led to the creation of harmful by-products. The
carbon dioxide emissions from India's coal-fired power stations increased from 901.7 grams per
kilowatt-hour (g CO2/kWh) in 2005 to 926 g CO2/kWh in 2012. This surpassed the worldwide
averages over the same period, which were 542 g and 533 g CO2/kWh, respectively. The
increasing predominance of electric vehicles was anticipated to stimulate the demand for
electricity, perhaps resulting in a rise in emissions from thermal power plants. This could have
offset the decreases in pollutants resulting from vehicle exhaust. This study sought to assess the
impact of shifting the fleet from internal combustion engine vehicles (ICEVs) to electric cars
(EV) on power generation sources, particularly coal power plants, and its environmental
implications in India. An exergy analysis was conducted to assess the viability of electric
vehicles in comparison to internal combustion engine vehicles. This research considered the total
emissions produced over the whole life cycle of the vehicles. Upon analyzing the emissions from
internal combustion engine vehicles and electric vehicles, both of which were fueled by coal
power generation, it was found that electric vehicles emitted lesser quantities of CO2 and CO.
Nevertheless, the thermal power plant indirectly generated greater amounts of SO2 and nitrogen
oxides (NOx) emissions. (Nimesh et al., 2020)
“The aim of this study is to examine the factors that impact the inclination to utilise
electric vehicles (EVs) in India. A comprehensive model was created to estimate the likelihood
of customers in India adopting electric vehicles (EVs) using the UTAUT. Perceived risk was
used as the predictor, while environmental concerns and government support were considered as
moderators. Analysed utilising hierarchical linear regression analysis, quantitative data from 284
customers was subjected to appropriate conditions analysis for verification. The results indicate
that individuals' belief in the effectiveness of electric vehicles (EVs) and the presence of
favourable conditions contribute to their willingness to adopt EVs. Conversely, the perception of
potential risks associated with EVs has a negative impact on adoption intention. The study found
that government support had a moderating influence on the connection between perceived risk
and the intention to adopt. More precisely, it reduces the adverse influence of perceived risk on
the intention to adopt. The results validate the UTAUT model by assessing its suitability in the
specific context of electric car uptake in India.” Moreover, this study enhances the current corpus
of literature by investigating the influence of psychological attributes on the inclination to
embrace novel items. The discussion also includes recommendations for specific actions that
vehicle companies and governments may take to encourage the adoption of the findings in policy
and practice. (Jain et al., 2022)
In order to promote the adoption of electric road transport technologies, it is necessary for
electric traction drive systems to demonstrate exceptional performance and capabilities,
including improved fuel efficiency (measured in MPGe, or miles per gallon of gasoline-
equivalent), longer range, and fast charging choices. The increasing popularity of electric
vehicles and advancements in transportation technology have generated a need for electric
traction drive systems that provide enhanced power and efficiency. As a result, this was
improving the fuel efficiency of electric vehicles by optimizing the battery charge. The U.S.
Department of Energy (DOE), in partnership with the automotive industry, set specific
benchmarks for the performance of light-duty electric vehicles (EVs) by 2025, aiming to make
them more attractive to the general public. This article examined the most recent innovations in
electric propulsion technology for electric and hybrid electric vehicles (EVs) intended for
passenger transportation. The emphasis was placed on readily accessible solutions, which
included the materials employed, designs of electric machines and inverters, maximum speed
capabilities, component cooling systems, power density, and overall performance. This article
offers a comprehensive summary of the latest materials and technology used in the domain of
power electronics and electric motors. The text highlighted the challenges and opportunities in
creating advanced designs to cater to the requirements of upcoming electric vehicles (EVs). This
study also analyzed various cutting-edge drive and motor designs that have the capability to
fulfill the Department of Energy's 2025 goals. (Husain et al., 2021)
A lack of adequate public charging infrastructure was commonly identified as a major barrier to
the broad acceptance of electric automobiles. Considering the substantial cost of constructing
charging stations, it was crucial to strategize on how to optimize the advantages for prospective
clients while operating within limited resources. Therefore, our analysis specifically examined
the factors that influenced the attractiveness of public charging infrastructure as perceived by
potential consumers. The analysis we did was based on the assessments of 1003 German
automotive customers regarding prospective charging infrastructure systems in the future. The
evaluation of these systems was conducted considering many criteria, including geographical
reach, speed of charging, and fees for usage. We performed a rating-based conjoint analysis to
examine the preferences for these characteristics. We also investigated if there were discernible
clusters of car drivers who displayed distinct preference patterns in relation to these features. Our
main finding was that the majority of car drivers were unwilling to pay a basic fee for the
privilege of using public charging stations. Nevertheless, several subcategories placed a higher
importance on the development of the public charging infrastructure compared to other
individuals who drive cars. Moreover, this result indicated that the existence of public charging
infrastructure could have a significant impact on encouraging diverse demographics to utilize
electric vehicles, beyond the conventional category of early adopters. Furthermore, our data
revealed that the duration of charging at charging stations in urban areas and on highways had a
substantial impact on the evaluation of the public charging infrastructure. In contrast, the
existence of charging stations in urban areas and on major roads had a relatively minor effect on
the extent of geographical coverage. An major discovery was that, when developing the charging
infrastructure, it was crucial to prioritize the availability of fast-charging stations rather than
focusing on creating a dense network of charging points.(Globisch et al., 2019)
“The successful adoption of electric vehicles depends not only on the technological
features but also on the available business models in the market. The objective of this study is to
evaluate and measure customer preferences for different business models in the context of
Electric Vehicle (EV) adoption. Specifically, we investigate how attitudes influence individuals'
preferences and decisions when it comes to business structures. In this paper, we analyse three
business models: battery leasing, vehicle leasing, and mobility guarantee. We conduct a stated
choice experiment to separate the impact of business models from other variables and calculate
an estimation of a hybrid choice model. The results indicate that preferences for business models
vary depending on the type of vehicle. For battery electric vehicles (BEV), vehicle leasing is the
most favoured option, while battery leasing is the least favoured. On the other hand, for
conventional cars (CV) and plug-in hybrids (PHEV), the traditional business model of full
purchase remains more popular. The choice of business models is greatly influenced by the
attitudes towards convenience, ownership, and electric vehicle leasing.” Regarding the assurance
of mobility, we have not observed any substantial impact on usefulness. Lastly, we will examine
the consequences for company strategy and government policy that might be drawn from our
findings. (Liao et al., 2019)
This study investigated the factors that influence the adoption of electric vehicles (EVs)
in the UK, with a particular focus on their economic and environmental benefits. The study
employed a dataset of expressed preferences and employed multiple regression models to
identify potential early adopters, ascertain the significant automobile attributes that influenced
purchasing decisions, and reveal the barriers to electric vehicle (EV) adoption. The results
indicated that variables such as age, educational attainment, and geographic area influenced the
probability of adoption. Additionally, the cost of purchase and the variety of choices available
had a significant role in the decision-making process. The primary barriers to wider adoption of
electric vehicles (EVs) in the UK were the high initial acquisition cost and the limited driving
range..(Mandys, 2021)
Methodology:
Data measurement:
The survey was conducted to evaluate the impact of several circumstances on persons'
inclination to make a purchase. The selected measurement items for the questionnaire, along
with an explanation of the research goal, were provided via email. Out of the 500 individuals
who were contacted, only 199 of them were considered valid. This study employed 8 scale
questions to assess performance expectancy, 6 scale items to evaluate effort expectancy, and 4
scale items to gauge social impact, as identified by (Gerpott & Mahmudova, 2010). The
technophilia scale, consisting of 8 items, was utilised as identified by (Wasmer et al., 2017). In
addition, the level of environmental knowledge that individuals believed they possessed was
assessed using a 5-item scale developed by (Mohr et al., 1998). In addition, (Dodds, 1991)
identified a purchase intention scale consisting of 5 elements. Scale items were adjusted based on
study findings related to consumer motivation, EVs, and purchasing intentions. The items were
evaluated using a 5-point Likert scale, with options ranging from 1 strongly disagree to 5
strongly agree. A pilot research was initially conducted on a sample of 50 participants and was
subjected to many pretests. The questionnaire also includes important demographic information
such as age, gender, race, and income. further, the instrument underwent modifications in
accordance with the findings of the pilot study, and was further validated by consultation with
practitioners, experts, and academicians. The main objective of validation was to ascertain the
absence of any difficulties in comprehending and responding to the questions, as well as
determining whether to retain the ideas. The questions were revised according to the collected
input, and certain questions were removed.
Data Collection:
The survey was administered online, specifically targeting those in India with high
incomes. We selected high-profile income groups as respondents due to the relatively high cost
of the vehicles. “The three primary income-based groupings in India are the B40 (representing
the bottom 40% of earners), M40 (representing the middle 40% of earners), and T20
(representing the top 20% of earners). These items are further categorised into four groups: M1,
M2, M3, and M4. Additionally, the item T is divided into two groups: T1 and T2. The survey
targeted respondents who had an income exceeding MYR 9000, specifically those belonging to
the M4, T1, and T2 groups. The high-income categories were chosen based on the exorbitant
price of these vehicles.” The study employed a convenience sample strategy, which involved the
respondents using their judgement to meet the research objectives.
The demographic characteristics of the participants, as indicated in Table 1, are as follows: A
total of 199 respondents were questioned in the present field, with 123 (62%) being males and 76
(38%) being females. The survey participants consisted only of individuals who were 18 years of
age or older. The majority of respondents fell into the age brackets of 40–49 (44.1%) and 30–39
(29.4%), respectively. The remaining respondents were distributed among the age groups of 50–
59 (16%), 18–29 (7%), and 60 years and older (3.4%). Out of the total population, 62.2% or 124
individuals are Malay, 17% or 34 individuals are Chinese, 14% or 28 individuals are Indian, and
6.6% or 13 individuals are from mixed ethnicities. Out of the respondents, 67 individuals,
accounting for 33.4% of the total, reported a monthly income ranging from MYR 10,001 to
MYR 15,000. This represents 21.07% of the total respondents. There are 42 individuals who
have an amount of MYR 5001-10,000, which is 18% of the total. There are 36 individuals that
have an income between MYR 15,001 and 20,000, which accounts for 13.3% of the total. Out of
the total of 26 individuals, 10.3% have an amount of MYR 5000 or less. There are 21 individuals
who have a total of MYR 20,001–25,000, which is a percentage of 3.6%. There are 7
respondents who have a total amount of MYR 25,001 or more. Thus, This profile sample
indicates that the participants are mature persons with a high-income status. They also possess a
profound comprehension of the themes under inquiry (Chan, 2001)and are more inclined to
exhibit sustainable purchasing behaviour by opting for eco-friendly products.
18-29 12 7%
30-39 58 29.30%
40-49 88 44.20%
50-59 34 16%
60 years and over 7 3.40%
Race
Malay 125 62.20%
Indian 27 14%
Chinese 35 17%
Others 12 6.60%
Income (MYR)
5000 or below 26 13.40%
5001-10,000 41 21.07%
10,001-15,000 68 33.30%
15,001-20,000 35 18%
20,001-25,000 22 10.20%
Result:
Reliability and validity of a construct can be evaluated using three measurements. The
study examined three key variables: factor loadings of all indicators, Cronbach Alpha value, and
average variance extracted (AVE). The Cronbach alpha for performance expectancy
demonstrates a moderate level of validity and reliability, with a testing score of 0.75.”
Cronbach's Alpha coefficients quantify the degree of internal consistency reliability, and
values exceeding 0.7 are typically deemed satisfactory. The constructs of Performance
Expectancy (PEK), Purchase Intention (PI), and Social Impact (SI) have strong internal
consistency, with values ranging from 0.771 to 0.823. Composite reliability values exceeding 0.7
imply satisfactory dependability, with all constructs meeting this criterion.
As all the values exceed the suggested thresholds. Assess the credibility and accuracy After the
first model was created, it was subjected to testing. Any objects that had a factor loading below
0.60 were eliminated. The constructs' average variance extracted (AVE) exceeded the minimum
threshold of 0.50. Nevertheless, AVE values that above 0.40 would also be considered
satisfactory. The reliability and validity of the concept may be found in Table 2.
The Cronbach Alpha, rho A, and CR scores must exceed the threshold of 0.7. Nevertheless, a
Cronbach alpha exceeding the suggested threshold of 0.6 is also deemed satisfactory(Kim &
Han, 2014). The CA, rho A, and CR values all above 0.7, indicating that dependability has been
attained. AVE values of 0.40 are considered acceptable (Fornell & Larcker, 1981). Since all the
values are above 0.4, it can be concluded that the constructions meet the validity criteria.
Therefore, these values meet the criteria of reliability and validity.
The table displays the correlation matrix of the constructs examined in the study. Every
individual cell inside the dataset represents a correlation coefficient, which measures the size and
direction of the relationship between two variables. The cells along the diagonal show the
correlation between each construct and itself, which is consistently
The cells that are not on the main diagonal demonstrate the correlation between distinct
constructions. The correlation coefficient between Effort Expectancy (EE) and Performance
Expectancy (PE) is 0.931, suggesting a robust positive association between these two categories.
Performance Expectancy (PE) and Purchase Intention (PI) have a correlation coefficient of
0.819, indicating a significant and positive association between them.
“Table 3: Heterotrait-Monotrait Ratio (HTMT)”
EE PE PEK PI SI TEC
The findings indicated that an explanatory capacity of 68.3% for consumer purchase
intention, as evidenced by an R2 value of 0.683. Furthermore, it was found that there is a
significant and positive correlation between EE, SI, TEC, and PEK and purchase intention.
Nevertheless, the correlation between PE and buying intention is negligible. Table 4 provides a
concise summary of the findings and hypotheses related to variables. The p-values indicate
whether the hypothesis is corroborated or refuted.
Discussion:
The study sought to evaluate the correlation between different characteristics and the intention of
consumers to acquire electric cars (EVs). “Although the link between performance expectancy
(PE) and purchase intention was not statistically significant (T = 1.631, p = 0.081), effort
expectancy had a positive and statistically significant effect (T = 2.371, p = 0.025), providing
support for H2. The impact of social influence on customer intentions was shown to be
statistically significant and positive (T = 4.143, p = 0.000), supporting hypothesis H3. The study
found that technophilia had a strong and favourable impact on customer motivation towards
electric vehicles (T = 2.717, p = 0.008), which supports hypothesis H4. Furthermore, the
consumer's intention was highly influenced by their perceived environmental knowledge (T =
5.031, p = 0.000), confirming H5. The research expanded upon the Unified Theory of
Acceptance and Use of Technology (UTAUT) framework by incorporating perceived
environmental information. This addition enhances our comprehension of consumer motivation
towards electric vehicles (EVs).” This research distinguishes itself from past studies by
specifically targeting high-income respondents and employing effective techniques to enhance
consumer understanding and awareness of sustainable vehicles. While previous studies have
already established the effectiveness of UTAUT in technology adoption, this research builds
upon that by focusing on a specific demographic and incorporating strategies to promote
sustainable automobiles. In summary, The findings highlight the importance of certain factors,
such as the perceived ease of use, the influence of others, the affinity for technology, and the
comprehension of the environmental impact, in shaping consumers' intentions to embrace
electric vehicles. This highlights specific areas where targeted interventions and marketing
tactics can be implemented.
Conclusion:
“This study establishes that consumer motivation can effectively enhance their intents to
purchase electric vehicles (EVs). This study identified five key factors that influence consumer
intention to acquire electric vehicles (EVs): performance expectancy, effort expectancy, social
influence, technophilia, and perceived environmental knowledge. Perceived environmental
awareness is associated with the sustainability viewpoint, in which electric vehicles (EVs) play a
role in decreasing greenhouse gas emissions from transportation. PEK has not been extensively
utilised in the context of electric vehicles, particularly in terms of elements that drive motivation.
Furthermore, the study findings demonstrated that these criteria provide sufficient efficacy to
incentivize consumers to buy electric vehicles. The study indicated that factor performance
expectancy is not beneficial. However, it has been important in the literature by increasing
consumer intentions towards certain technologies. While the electric vehicle (EV) supply is
currently there in the market, there is a need to boost its demand. Electric vehicles (EVs), being a
contemporary technological advancement, require worldwide recognition in order to effectively
decrease carbon emissions from transportation. Nevertheless, consumer understanding and
awareness can be augmented in order to facilitate the purchase of these cars through motivational
factors. Corporations and governmental organisations should actively endorse and financially
support the dissemination of electric vehicle (EV) information to incentivize consumers to
increase their buying habits. The government's goal of lowering carbon emissions as outlined in
the Green Tech Master Plan 2030 and Sustainable Development Goals can be achieved through
consumer incentive and adoption of these cars. Maximising the dissemination of environmental
knowledge among consumers will increase consumer awareness and drive their willingness to
adopt these vehicles.
Future research should apply this study model to various genres of consumer adoption of
electric vehicles (EVs) in order to investigate the influence of performance expectancy, effort
expectancy, social influence, technophilia, and perceived environmental understanding on
customer intentions.” Additional variables could be incorporated into the analysis of customer
acceptance and motivation in relation to electric vehicles (EVs).
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