Asian Journal of Economics, Finance and Management

4(2): 13-25, 2021; Article no.AJEFM.434

A Study on Consumer Perception and Purchase

Intention of Electric Vehicles in India
Ajex Thomas Varghese1*, V. S. Abhilash1 and Sini V. Pillai1
1
CET School of Management, College of Engineering, Trivandrum, Affiliated to APJ Abdul Kalam
Technological University, India.

Authors’ contributions

This work was carried out in collaboration among all authors. Author ATV designed the study,
collected the data, performed the statistical analysis and wrote the first draft of the manuscript. Author
VSA refined the analysis and manuscript. Author SVP managed the literature searches. All authors
read and approved the final manuscript.

Received 28 March 2021

Original Research Article Accepted 03 June 2021
Published 04 June 2021

ABSTRACT

The primary purpose of this study is to analyse the consumer perception and purchase intention of
electric vehicles in India. As India is facing environmental problems, the government is producing
positive policies to stimulate the sales of electric vehicles through which the country can meet the
UN climate goals of reducing greenhouse gas emissions. In addition, India is one of the largest
vehicle markets in the world, and the electric vehicles market has promising growth potential. This
study adopts a quantitative approach and surveys to explore the problem statement. The influence
of factors affecting the consumers’ willingness to purchase electric vehicles and the level of
consumer perception about electric vehicles in India, is empirically tested in this research. It
provides insights for EV manufacturers and the government on the expectations of the consumers
on Electric vehicles in India.

Keywords: Electric vehicles; environment; drive range; value for money; infrastructure; consumer
awareness; perception.

ABBREVIATIONS alternatives to gasoline-bassed vehicles, leading

to an increase in BEV sales in many countries.
BEV : Battery Electric Vehicles From 2005 to 2020, global sales of new BEVs
ICE : Internal Combustion Engine increased from 1,890 to 2.1 million vehicles
globally in 2019 (Virta Global, [WR 6] 2021). In
1. INTRODUCTION line with this global trend, BEV sales in India
have also increased enormously. Since 2010,
In the global vehicle market, battery electric when BEVs were first introduced with 600
vehicles (BEVs) have been considered as new vehicles, the sales of new BEVs increased to
_____________________________________________________________________________________________________

*Corresponding author: Email: ajex.varghese@gmail.com;

 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

approximately 1.56 lakhs vehicles in 2019. transport part likewise represents about 10% of
However, the market share for BEVs in India was CO2 outflows and is a significant hotspot for air
0.7% in 2019, revealing that BEVs have not yet poisons. The study investigates the impact of
effectively penetrated the Indian vehicle market, various co-advantages of EVs as CO2 outflows
unlike BEVs’ market penetration in other decrease air contamination, social acceptance,
countries. Compared to conventional gasoline and the trust of consumers over the technology
vehicles, BEVs produce zero emissions and and the present infrastructure influence the
reduced noise while driving, and require smaller purchase intention of consumers. Other than the
operating costs. Despite their higher vehicle co-benefits, EVs can have co-expenses and
price, shorter driving range, and longer charging dangers, for example, from the vast scale
time, BEVs show great potential as new interest for batteries. This paper aims to
alternatives for transportation. scrutinize the importance of e-vehicles in the
minds of Consumers in maintaining sustainability
Present-day environmental concerns are pushing in the environment.
the manufacturing and sales of Electric vehicles.
It is a push factor for the country to achieve the 1.2 Scope of the Study
Paris climate agreement (UNFCC [WR 7]). The
year 2018 has revolutionized the Indian The study focuses on the consumer perception
manufacturer’s conception of Electric vehicles as and purchase intention of electric vehicles in
the best alternatives to fuel cars. The mixture of India. Many studies and researches happened to
Indian skilled and semiskilled technological base, analyze the technology, benefits, environmental
a platform of large customer base, and relatively impact, and social acceptance related to e-
cheaper production and labour cost, has vehicle. Here, the study conducted by
fascinated almost all global electric vehicle considering those works of literature and the
manufacturers and component suppliers, to start inferences from a sample survey from the
operations from India — and the result would individuals owning vehicles, to address the issue
give thrust to infrastructural development. of lack of knowledge with the public regarding
Accordingly, analyzing the factors that influence EVs, Further this study throws light upon the
consumers' intention to adopt BEVs becomes expectation about these vehicles in the minds of
necessary to create well-organised policies that the buyers. To suppress the problem of Air
will encourage BEV sales. pollution and environmental Hazards to the
maximum extent while using EV.
There is a need to study the factors controlling
the consumer acceptance of these vehicles.
Various factors that influence the purchase 1.3 Need and Significance of the Study
decision of car buyers are situations like
regulatory environment, personal current The need for the study is to understand the
psychological factors, like attitude, perception, consumer perception and the purchase intention
the cost to be bared, social acceptance, and trust of e-vehicles in India. The significance of the
levels. Although some factual studies of the study is that EVs can cause remarkable impacts
consumer acceptance of hybrid vehicles have on the environment, the country's economy,
been conducted, there is little research that power system, and other related sectors. There
considers the perception and buying intention of are possibilities of enormous environmental
full-electric vehicles. From an environmental benefits as well, as EVs can extensively reduce
perspective, climatic change, increase in high the greenhouse gas emission from the
CO2 emissions, and depletion of Fossil reserves, transportation sector. However, there are some
the roll-out of the electric vehicle can be major obstacles for EVs to overcome before
perceived as a safety measure and future replacing conventional internal combustion
security. engine vehicles. This study is focused on
reviewing all the useful data available on factors
1.1 Problem Statement that influence the consumers, technology,
charging techniques, impacts, trends, and
The transport sector is the biggest consumer of possible directions of future developments. Its
oil in India. Since India imports, more than three objective is to provide an overall picture of the
fourth of its oil request, the oil imports have current consumer trend and expectation on EV
genuine consequences for national vitality technology and ways of future development to
security. Because of high oil dependency assist in future researches in this sector.

14
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

2. MATERIALS AND METHODS put the demand for electric vehicle manufacturing
on to a sleep mode. But the year 2017 has again
2.1 Literature Review revived the demand, with the concept of making
EV for longer distance drives too and upliftment
2.1.1 Electric vehicle in a vehicle maintenance support system by the
Government. Technology perception and
Electric vehicles came into existence in the mid adoptions have two features first is the attribute
of 19th century, when electric power was one of of technology and the second is the adopter. In
the preferred modes for motor vehicle propulsion, management outlook, it can be explained
providing a level of comfort and ease of through “innovation diffusion theory (IDT)
operation that could not be attained by the fuel (Rogers, 1962) and following extensions such as
cars of the time. The internal combustion engine the TOE (Technology organization
(ICE) is the presiding propulsion method for environmental) framework, Tornatzky, and
motor vehicles but electric power persists Fleischer, 1990). These are associated with the
commonplace in other vehicle types, such as adoption of new technology based on usefulness
trains and smaller vehicles of all types. (performance expectancy), ease of use (effort
expectancy) Social influence, and facilitating
EVs have to rely completely on the energy stored conditions (Venkatesh and Davis [9]; Venkatesh
in their battery packs; therefore the driving range et al. [10])”. These parameters also play a very
of such vehicles depends directly on the battery crucial role in the adoption of Electric Vehicles.
capacity. The ranges of the battery here are
depending on the vehicle configurations, driving The commercial vehicle segment is expected to
condition and style, road conditions, climate, be the fastest-growing market in the EV industry.
battery type, and age. Once exhausted, charging India and China are the major contributors to the
the battery pack takes quite a long time growth of the electric commercial segment
compared to refuelling a conventional ICE particularly due to the increasing adoption of
vehicle. Charging time depends on the operating electric buses. Many countries are expected to
power level, charger configuration, and replace their present fuel-based bus fleet with
infrastructure. The advantages of EVs are their electric buses. The continuing trend of replacing
simple construction, operation, and convenience. the fossil fuel-based public transport fleet with
These do not create any noise, do not produce electric buses will drive the growth of electric
any greenhouse gas (GHG), and therefore commercial vehicles. Additionally, the evolution
beneficial to the environment. of e-commerce, logistics, and shared mobility
has driven the growth of electric commercial
The potentials of electric vehicles have been vehicles during the forecast period.
studied in many research from a technical
(Werther [1], Frischknecht [2], labeye [3] Presently the electric vehicle market is controlled
economic (Kley et al. [4]), environmental by globally established players such as Tesla
(Sourkounis et al. [5], consumer attitude (Roger (US), BYD (China), BMW (Germany),
Bennett [6]) and purchase intention (Kenan Volkswagen (Germany), and Nissan (Japan).
Degirmenci [7]) point of view. The researchers These companies are mainly focused on
also manifested that there is a substantial developing new products, adopt expansion
struggle for electric vehicles to create appropriate strategies, and undertake collaborations,
markets, at least public Perception and partnerships, and mergers & acquisitions to gain
Acceptance of Electric Vehicles in India. There is traction in this high-growth electric vehicle
a changing trend from acceptance of fuel cars to market. The Asia Pacific market is expected to
EV requires an enormous propagation and trust- spot the fastest growth, followed by Europe and
building on the electric vehicle segment. Still, North America. Some country's automotive
however, there is strong negativity in acceptance industry inclined toward innovation, technology,
of EV (Hoffmann [8]). and the development of advanced electric
vehicles in the countries such as China, Japan,
2.1.2 Electric vehicle industry and South Korea.

The use of electric vehicles was in existence 2.1.3 Awareness about the EV for consumers
before 1918 but it virtually fades away with the
development of gasoline-powered internal As a relatively new technology that has only
combustion engine vehicles. These fuel-led cars begun to become a mainstream product, it is

15
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

important to understand the levels of awareness protection goals in the transport sector. Although,
consumers have towards HEVs and PEVs, and it is still unknown what will be the environmental
more importantly what aspects affect consumer impacts of the large-scale introduction of electric
decisions. To understand and gain some insight vehicles. Many countries have taken this primary
into green marketing, the research study from goal and responsibility towards the environment
Lan et al. [11] drive directly on HEV and PEV and sustainable development. This project has
awareness. developed scenarios for the increased
dissemination of electric vehicles in the market
Taking a microeconomic approach Zhang et al. until 2050 and formulated policy
[12] analyzed consumer awareness towards EVs recommendations from these findings.
and examined the factors that affect consumers’
choices in China. The study uses survey data When an electric vehicle is running on electricity,
collected from 299 respondents in the region of it emits no tailpipe emissions. EVs are a lot more
Nanjing China. Zhang et al. (2011) utilize three eco-friendly than conventional gasoline-powered
binary regression models to determine the vehicles on the market today when the
factors that contribute to the acceptance of EVs, assessment is based on that factor alone.
purchase time frame, and purchase price. However, when evaluating the eco-friendliness of
Additional factors that influence purchasing and an electric vehicle, then need to consider the
price acceptance are academic degree, age, “well-to-wheel" emissions. This is a
annual income, the number of family members, comprehensive term that considers greenhouse
maintenance cost, and the opinion of peers. The gas and air pollutants that are emitted during the
findings from this study essentially set separately act to produce and distribute the energy to power
the criteria for consumers in China and what the car. Electricity production leads to a varying
motivates their purchasing behaviour of EVs. amount of emissions depending on the resource.
Many studies and finding suggest that a high While “being green” in the act of driving the
level of environmental awareness exerts a electric vehicle is a start, if the supreme goal in
positive effect on the use of more purchasing an electric vehicle is to reduce
environmentally friendly transport modes greenhouse gas and pollutants emissions, then
(Kumagai and Managi [13]; Xu et al., 2020; Zhou should prioritize using zero-emissions electricity
et al. [14]). wherever possible. Rezvani et al. [19] identify
that consumers with a higher perception
Many studies have found that there is a general regarding the environmental impacts of the EVs
lack of knowledge and awareness about electric have a higher choice probability for EVs. Natural
vehicles among consumers. For example, less gas provides the majority of electricity, followed
than 50% of U.S. consumers can name a specific closely by coal. It is often considered to be the
plug-in electric vehicle make and model (Singer “cleanest” fossil fuel because it emits 50 to 60
[15]), and less than 35% of California consumers %less carbon dioxide than coal. Coal is the main
are aware of incentives and subsidies available source for around 65 %of carbon dioxide
for the purchase of electric vehicles (Kurani [16] emissions by the electric power sector. If the
& Tal, 2014). In a survey that happened within primary motive in purchasing an electric vehicle
U.S. cities (Krause [17]), about two-thirds of the is to be green, they should consider powering the
respondents had a wrong understanding of the vehicle with a renewable energy source that can
basic characteristics of plug-in electric vehicles, generate at your home (such as solar, wind, or
and about 95% of them were not aware of geothermal energy).
available incentives. An IBM consumer survey
(Gyimesi & Viswanathan [18], 2011) closely 2.1.5 Consumer acceptance on EV
found that 45% of the surveyed drivers had little technology
to no understanding of electric vehicles.
Consumers who have exposure to electric The distinction of environmental
vehicles are more aware of the usefulness more entrepreneurship is the focus on acting in the
highly and consider them as a choice for future economic and ecological needs of society,
purchases (Kurani et al., 2016; Larson, 2014; thereby emphasizing a ‘double bottom line’ of
Gyimesi & Viswanathan, 2011). fusing sustainable objectives and profit-driven
2.1.4 Environmental impact of electric vehicle models (Belz & Binder [20]). More recently,
technological innovation has been capitalized
Electric vehicles have the potential for notable upon to improve the natural environment (Walsh
contributions towards achieving the UN’s climate [21]). In this space, stakeholders act under the

16
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

pretence that successful market potential to Rogers’ (2003) findings suggest that of the five
support and foster innovation requires knowledge adopter groups, distinct marketing tactics are
and sophistication for consumers to adequately necessary to captivate and persuade potential
recognize the value proposition of the explored consumers to adopt an innovative product or
product or service. User perception and market service. The degree of support generated as a
acceptance are therefore interrelated items that result of the initial ‘innovators’ and ‘early
can dictate the direction of future policy and adopters’ dictates a predictive pathway to
action. A renewable energy technology (RET) understanding the rate at which adoption
commercialization environment framework amongst the ‘early majority, ‘late majority, and
highlights market-pull (the eco-sophistication of ‘laggard’ groups may occur. With the intention of
the market) and technology-push (demand for better understanding EV marketing modelling,
renewable energy technology products) forces to Peters and Dütschke [22] applied preceding
determine more appropriate choice theories on user adoption trends towards
commercialization strategies based on the nature innovation to specifically query for the intention to
of the market. purchase and use an EV by consumers. For the
study, he adapted the variables from Rogers’
The literature surrounding innovation implies that (2003) work on the diffusion of innovation theory.
individuals who embody certain descriptive However, there was a decision to substitute the
characteristics will adopt innovations before their ‘complexity’ variable with the ‘ease of use’ for a
peers. Such characteristics include the more positive specification of the construct. For
perception of the individual adopters, the this research, since the intent is to maintain a
communication channels, time scale, and social neutral stance on the matter, the variables will
systems of influence (Rogers, 2003). Rogers’ not be interchanged. According to Intention to
modelled the diffusion of innovation theory which purchase and use an electric vehicle model
suggests that members of a given society will fall (Peters & Dütschke, 2014), there are six
into one of five predetermined adopter groups variables to play a major impact on the Intention
based on their willingness to accept a new to purchase and use an EV.
technology.

Fig. 1(a). Diffussion Innavation Theory (Rogers, 2003)

Fig. 1(b). Intention to purchase and use an electric vehicle model (Peters & Dütschke [22],
2014)

17
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

2.2 Research Methodology different age groups above 18years. These

respondents are helping the study in gathering
2.2.1 Conceptual model of the study the data related to the awareness and
buying intention of electric vehicles in India.
The structural model describes how the different This process of gathering the data has been
variables in the study are related to each other. It carried out for accomplishing the study
generally shows the relationships. objectives.

2.2.2 Research design 2.2.5 Method of data collection

The study attempts to identify the consumer The primary data gathering process is carried out
perception and purchase intention of electric with the help of structured survey questionnaires.
vehicles in India and also to examines the The survey questionnaire was constructed, to
possibility of suggestions for improvement and gather appropriate information on the consumer
procedures in the electric vehicle industry. For perception, degree of positive attitude towards
carrying out this research study, a descriptive electric vehicles, and their buying intention. The
research design has been employed. questionnaire consists of 27 questions and all of
them are closed-ended, referring to previous
2.2.3 Population researches and similar studies contributed to the
secondary data.
The population for this survey would be people
above the age of 18 in India. This is because 2.3 Data Analysis
only people above the age of 18 would have a
vehicle and a significant role in purchasing A total of 144 response has been considered for
decisions of valuable possession like a vehicle. It the analysis, which represents various factors
is highly difficult to reach out to the entire affecting purchase intention of the consumers in
population and even not possible due to the India. Interpreting this data to test the hypothesis
present pandemic COVID 19 situation. and create a useful inference from the data.
Inferent analysis type is adopted here, it
2.2.4 Sample method generalizes or hypothesizes about “What
happened?” by comparing statistics from groups
The framework used for the survey sample is within the population. The primary aim of the
purposive sampling and will collect the data analysis here is to carry out statistical
responses from a sample size of 144 analysis like the Chi-square test to examine the
respondents. This sampling technique is used differences between categorical variables in the
because of time constraints and to have a fair same population, and the correlation coefficient
spread of data when demography is considered. test to find the relation between the continuous
The sample includes a proportionate variables. The tool used for analyzing the data
representation of male and female consumers of collected is SPSS software.

Fig. 2. Conceptual model

Source: Jai Wang & Wei Zhou [23], Zhang et al. (2011), Koenig-Lewis et al. [24], Pretty Bhalla [25],
and Axsen et al. [26]

18
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

2.3.1 Survey participant profile From the experience of vehicle purchase, it can
be seen that the feedback of the experience with
electric vehicles is still a minority, only 17 people
To understand the characteristics of the sample
responded "yes". It is another way to understand
data collected, the demographical features have
that the electric vehicle market still has great
been statistically evaluated which helps to give a
opportunities to develop, the prospect may be
better and clear picture of shifting of influencing
optimistic.
factors and consumer behaviour.
2.3.2 Analysing the Influence of
Table 1 illustrates the sample profile of the Environmental concern of people on the
respondents in this study. For gender, the purchase of the electric vehicle
number of males is larger than that of females. In
the age group, most of the respondents are Hypothesis 1: Environmental Concern of the
millennials who are from 25 years old to 44 years people can positively influence their intention to
old (71%). Especially in India, Under various purchase Electric Vehicles.
articles of the Indian Constitution, free and Ho - There is no positive influence on the
compulsory education is provided as a purchase intention of EVs due to Environmental
fundamental right to children aged 6 to 14, so it concern of people.
can be understood that no persons of education
level are under upper primary school age. Most HA - There is a positive influence on the
of them have Bachelor's or Master's degrees purchase intention of EVs due to the
(46%). Environmental concern of people.

Table 1. Participant profile

Survey Participants n=144

Gender
Female 42 29%
Male 102 71%
Other 0 0%

Age
18-25 12 8%
26-35 33 23%
36-45 69 48%
46-55 25 17%
>55 5 3%

Highest Qualification
SSLC 0 0%
+2 1 1%
Diploma 17 12%
U.G 67 47%
P.G 49 34%
Doctoral degree 10 7%

Income Level
Between 15,000 to 17 12%
50,000/- per month
Greater than 50,000/- per 37 26%
month
Less than 15,000/- per 5 3%
month
Prefer not to answer 85 59%

Experience with electric

vehicles
No 127 88%
Yes 17 12%

19
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

Table 2. Correlation – Hypothesis 1

Correlations
Environmental Crn Purchase Intention
Environmental Concern Pearson Correlation 1 .173*
Sig. (2-tailed) .039

N 144 144

Purchase Intention Pearson Correlation .173* 1

Sig. (2-tailed) .039

N 144 144

*. Correlation is significant at the 0.05 level (2-tailed).

By running Pearson's correlation to determine Ho – There is no relationship between the “Value

the relationship between 144 values of both for money” and purchase intention of an Electric
variables, the significance level (0.039) is lesser Vehicle.
than 0.05, the test is statistically significant and
indicates strong evidence to reject the null HA – There is a relationship between the “Value
hypothesis. This means here in this case we for money” and purchase intention of an Electric
accept the alternative hypothesis. The null Vehicle.
hypothesis is rejected and there is a positive
correlation between the environmental concern A Pearson's correlation was run to determine the
and the purchase intention of electric vehicles in relationship between 144 values of the value for
India, however, the correlation value is a weak money variable and purchase intention
one. ( = .173, n = 144, p < .05). Among all other dependent variable. As the significance level
factors, as per the study, the influence of (0.001) is lesser than 0.05, the test is statistically
environmental concern is having a positive significant and indicates strong evidence to reject
impact on the purchase intention of Indian the null hypothesis. This means we accept the
consumers. alternate hypothesis and reject the null
hypothesis. The statistical test providing an
2.3.3 Analysing the positive influence of inference that there is a correlation between the
electric vehicle's value for money factor value for money factor and the purchase
on purchase intention intention of electric vehicles in India. ( = .269, n
Hypothesis test 2 - There exists a relationship = 144, p < .01).
between the “Value for money” and purchase
intention of an Electric Vehicle.
Table 3. Correlation – Hypothesis 2

Correlations
Willingness Value for Money
Willingness Pearson Correlation 1 .269**
Sig. (2-tailed) .001

N 144 144

Value for Money Pearson Correlation .269** 1

Sig. (2-tailed) .001

N 144 144

**. Correlation is significant at the 0.01 level (2-tailed).

20
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

In general, financial factors are always important 2.3.5 Analysing the influence of
for consumers when they decide to buy a new infrastructure over the purchase
vehicle. The consumer will consider the price intention of electric vehicle
factors like initial cost, benefit during
maintenance, and cost incurred to recharge the Hypothesis test 4 – A well-established
batteries. if the cost of the vehicle goes down the infrastructure will have significant control over the
intention to purchase the decision will go up purchase intention of an electric vehicle.
further. Here it is the responsibility of the electric
vehicle producers to produce low-cost vehicles Ho – There is no significant control of
by minimizing various variable costs. infrastructure over the purchase intention of an
electric vehicle.
2.3.4 Analysing the influence of the Driving HA – There is significant control of infrastructure
range of electric vehicle on the over the purchase intention of an electric vehicle.
purchase decision
A Pearson’s correlation was run to determine the
Hypothesis test 3 – The driving range of an relationship between 144 values of both
Electric Vehicle can impact the purchase variables of the infrastructure and the purchase
decision of consumers. intention. As the significance level (0.0004) is
less than 0.05, the test is statistically significant,
Ho – Driving Range of the electric vehicle the null hypothesis is rejected, and there exists a
doesn’t cause any impact on the purchase correlation between the supporting infrastructure
decision. and consumer's Purchase Intention, even though
the correlation is positive its a weak one ( =
HA – Driving Range of the electric vehicle .291, n = 144, p < .01).
causes an impact on the purchase decision.
2.3.6 Analysing the impact of consumer
A Pearson's correlation was run to determine the perception about electric vehicles on its
relationship between 144 values of both purchase
variables. As the significance level (0.0003) is
less than 0.05, the test is statistically significant, Hypothesis test 5 – There exists a statistically
the null hypothesis is rejected, and there exists a significant relationship between consumer
correlation between the driving range of electric perception and buying intention of electric vehicle
vehicle and consumer's Purchase Intention, and
the correlation is weak ( = .295, n = 144, p < Ho – There is no significant relationship between
.01). As far as the Indian consumers, the driving consumer perception and buying intention of
range is one of the main pull factors which play electric vehicle.
as a barrier when considering buying an electric
vehicle. In the market, it is also known as 'range HA – There is a significant relationship between
anxiety' which is most concerning to the consumer perception and buying intention of
consumers. electric vehicle.

Table 4. Correlation - Hypothesis 3

Correlations
Willingness Drive Range
Willingness Pearson Correlation 1 .295**
Sig. (2-tailed) .000325

N 144 144

Drive Range Pearson Correlation .295** 1

Sig. (2-tailed) .000325

N 144 144

**. Correlation is significant at the 0.01 level (2-tailed).

21
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

Table 5. Correlation – Hypothesis 4

Correlations
Willingness Infrastructure
Willingness Pearson Correlation 1 .291**
Sig. (2-tailed) .000411

N 144 144

Infrastructure Pearson Correlation .291** 1

Sig. (2-tailed) .000411

N 144 144

**. Correlation is significant at the 0.01 level (2-tailed).

Chi-square analysis has been conducted to The results demonstrate that the awareness of
identify the significance of the relationship. Indian consumers positively affects the Indian
consumers’ willingness to electric vehicle
By conducting the Chi-square test to determine consumption. It is in line with the prior studies,
the relationship between consumer perception which focus on the impact of awareness about
and the willingness to adopt electric vehicles. the electric vehicle on its adoption. The findings
From the 144 values of perception about the here suggest as a personal belief, individual
factors affecting electric vehicles in India, the environmental awareness motivates people to
significance level obtained (0.0002) is less than adopt electric vehicles. More precisely that,
0.05, the test is statistically significant, the null Indian people with the belief of environmental
hypothesis is rejected, and there exists a awareness are more likely to be potential
significant relationship between consumer consumers of electric vehicles.
perception and buying intention of the electric
vehicle.

Table 6. Chi-Square test – Hypothesis 5

Awareness * Willingness Crosstabulation

Willingness

No Yes Total
Awareness Yes Count 5 120 125

Expected Count 8.7 116.3 125.0

No Count 4 7 11

Expected Count .8 10.2 11.0

May be Count 1 7 8

Expected Count .6 7.4 8.0

Total Count 10 134 144

Expected Count 10.0 134.0 144.0

22
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 16.792a 2 .000226

Likelihood Ratio 10.199 2 .006

Linear-by-Linear Association 6.892 1 .009

N of Valid Cases 144

a. 2 cells (33.3%) have expected count less than 5. The minimum expected count is .56.

3. FINDINGS driving range claiming by the manufacturers

is not reliable.
 From the statistical test, it is inferring that  From the data collected, the price range,
there is a relationship between the range confidence, and the charging
awareness level and the purchase intention infrastructure are found barriers for EV
of electric vehicles in India. The awareness diffusion. Indian consumers are very much
level leads to developing perception towards price sensitive, almost 3x the price tag of an
the electric vehicle, and it will influence the EV which comparing with an equivalent ICE
purchase willingness of EVs. is a high barrier.
 Based on the data collected the awareness  Recharging the EV is a much more
level of consumers on an electric vehicle is significant time investment, Inadequate
found to be a mixed one, more than 70% charging infrastructure, and slow charging
aware of its environmental benefits and the batteries pull the consumers from adopting
government initiatives for green environment the EVs. As per the official report from The
and less than 50% responded they are Bureau of Energy Efficiency, Ministry of
aware of the infrastructure required and the Power, Government of India, it is only having
technology used for the EVs. i.e; consumers 750 + charging stations all over the country.
are aware of the environmental benefits and  In Indian Market, people have trust in
governmental initiatives, but many don’t technology but the trust parameter is lacking
know about the technology, features, and in electric vehicles since it is yet to evolve.
infrastructure requirement of EVs. Trust is an important dimension, the Indian
 It has been evident from the correlation consumers spend only where they trust.
coefficient test, that the factors like  The driving range still has a long way to
environmental concern, value for money develop and upgrade, due to the short
factor, driving range, and infrastructure are driving range of electric vehicles, it is not
having a positive influence on the purchase sufficient to meet the requirements for users
decision of consumers. wanting to travel long distances.
 One of the biggest roadblocks for the  From the survey data collected, more than
success of deploying electric vehicle 60% are having plan to buy an electric
schemes by the Government in India is the vehicle in the coming 10 years, so it is
lack of adequate charging infrastructure (CI), expected a good shift towards EVs in the
more than 90% of survey participants coming future. The annual electricity demand
responded “The infrastructure for electric will increase, to meet this demand will be a
vehicles needs to grow in the country” high task to meet. For a substantial reduction
 Another factor that the consumer considers of CO2 emissions, the government needs to
as a key one is the driving range, In the look forward to the generation of electricity
market, it is also known as 'range anxiety' from natural resources for charging EV
which is most concerning to the consumers. batteries.
More than 60% says that the present EVs in  The popularity of electric vehicles leads to
the market doesn’t meet their range the excess usage of batteries, which may
expectation. And the 66% says that the cause environmental damage. Improperly

23
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

disposed batteries contribute to water and air COMPETING INTERESTS

pollution, it will negatively affect human
health. Authors have declared that no competing
 According to the report, from the absence of interests exist.
sufficient reserves of key raw materials like
lithium and cobalt, India has to depend on REFERENCES
other countries for the supply. The
development of the battery industry, 1. Werther B, Hoch N. E-Mobility as a
supporting charging infrastructure, and Challenge for New ICT Solutions in the Car
local supply chains are critical for EV Industry. In: Bruni, R., Sassone, V. (eds.)
adoption. TGC 2011. LNCS, Springer, Heidelberg.
2012;7173:46–57.
4. CONCLUSION 2. Frischknecht R, Flury K. Life cycle
assessment of electric mobility: Answers
Based on the analysis, electric vehicle and challenges. International Journal of
manufacturers and the Government of India have Life Cycle Assessment. 2011;16:691–695.
to invest more in social acceptance of the vehicle 3. Labeye E, Adrian J, Hugot M, Regan MA,
by creating more infrastructural facilities, high Brusque C. Daily Use of an Electric
capacity batteries, putting more thrust on Vehicle: Behavioural Changes and
technology, that can create trust in consumers. Potential for ITS Support. IET Intelligent
The result clearly illustrates that the population is Transport Systems. 2013;7:210–214.
well aware of the environmental benefits. 4. Kley F, Lerch C, Dallinger D. New
Because environmental sustainability is one of Business Models for Electric Cars: A
the major concerns to be addressed and electric Holistic Approach. Energy Policy. 2011;
vehicles would ultimately aid in achieving the 39:3392–3403.
same as the carbon emissions from electric cars 5. Sourkounis C, Ni B, Broy A. Pollution of
is almost 90% lower than conventional cars. High Power Charging Electric Vehicles in
Apart from manufacturers, Government should Urban Distribution Grids. In: 2011 7th
strive hard to spread awareness about EVs and International Conference-Workshop on
influence positive perceptions among potential Compatibility and Power Electronics
customers. (CPE). IEEE. 2011;34–39.
6. Roger Bennett. Consumer Attitude towards
Irrespective of the demographics, incentives from electric vehicles: Effect of product user
the Government for the purchase of electric cars stereotypes and self-image congruence.
have gained only limited awareness among the European Journal of Marketing. 2018;
potential customers. People perceive that price 52(3/4):499-527.
and maintenance cost is relatively high over 7. Kenan Degirmenci, Michael H. Breitner.
other factors. Even the people who are ready to Consumer purchase intentions for electric
own electric cars perceive that the price of vehicles: Is green more important than
electric vehicles is relatively high, but they feel price and range? Elsevier, Transportation
that EVs can contribute much to reducing Research. Part D. 2017;51(2017):250–
environmental pollution and social acceptance 260.
while owning it. Hence they prefer electric cars. 8. Hoffmann C, Hinkeldein D, Graff A, Kramer
Similarly, charging infrastructure and drive range S. What Do Potential Users ThinkAbout
are perceived as low, and recharging time is Electric Mobility? In: Evolutionary Paths
perceived as high. Even though there are areas towards the Mobility Patterns of the future.
to improve for the growth of EVs in India, there Springer, Heidelberg. 2014;85–99.
more 50% respondent are with the plan of 9. Venkatesh and Davis. A Theoretical
owning an electric vehicle shortly. Extension of the Technology Acceptance
Model: Four Longitudinal Field Studies,
CONSENT INFORMS, Management Science. 2000;
46(2):186-204.
As per international standard or university 10. Venkatesh, et al. User Acceptance of
standard, respondents’ written consent has been Information Technology: Toward a Unified
collected and preserved by the author(s). View, MIS QUART. 2003;27(3):425-478.

24
 Varghese et al.; AJEFM, 4(2): 13-25, 2021; Article no.AJEFM.434

11. Lan S, Sheng T, Zhang K. Marketing commercialization strategies for small and
factors of green economic effect on medium renewable energy enterprises
consumers' purchase intention for the Technovation. 2012;32(2012):32-42.
market of family-sedan in Taiwan. 22. Peters and Dütschke. How do consumers
Research in World Economy. 2014;5(2): perceive electric vehicles? A comparison
176-188. of german consumer groups. J. Environ.
12. Zhang Y, Yu Y, Zou B. Analyzing public Policy Plan. 2014;1-19.
awareness and acceptance of alternative 23. Jai Wang, Wei Zhou. Factors Influencing
fuel vehicles in China: The Case of EV; the Purchase Willingness towards Electric
2011. Vehicles in China. Thesis, Business
13. Kumagai J, Managi S. Environmental Studies. 2019;1.
Behaviour and Choice of Sustainable 24. Koenig-Lewis N, Palmer A, Dermody J,
Travel Mode in Urban Areas: Comparative Urbye A. Consumers' evaluations of
Evidence from Commuters in Asian Cities. ecological packaging–Rational and
Production Planning & Control; 2019. emotional approaches. Journal of
14. Zhou Z, Nie L, Ji H, Zeng H, Chen X. Does Environmental Psychology. 2014;37:94-
a firm’s low-carbon awareness promote 105.
low-carbon behaviours? Empirical 25. Pretty Bhalla. A Study of Consumer
Evidence from China. J. Cleaner Prod. Perception and Purchase Intention of
2020;244:118903. Electric Vehicles, European Journal of
15. Singer M. Consumer views on plug-in Scientific Research. 2018;362-368.
electric vehicles: National Benchmark 26. Axsen J, TyreeHageman J, Lentz A.
Report; 2015. Lifestyle practices and pro-environmental
16. Kurani & Tal. Electric Cars in California: technology. Ecological Economics. 2012;
Policy and Behavior Perspectives; 2014. 82:64-74.
17. Krause RM, Carley SR, Lane BW, Graham
JD. Perception and reality: Public Website References (WR)
knowledge of plug-in electric vehicles in 21
US cities. Energy Policy. 2013;63:433– 1. Available:https://beeindia.gov.in/content/e-
440. mobility
18. Gyimesi K, Viswanathan R. The shift to 2. Available:https://www.ibef.org/download
electric vehicles: Putting consumers in the 3. Available:https://en.wikipedia.org/wiki/Elect
driver’s seat; 2011. ric_vehicle_industry_in_India
19. Rezvani Z, Jansson J, Bengtsson M. 4. Available:https://home.kpmg/in/en/home/in
Consumer motivations for sustainable sights/2020/10/electric-vehicle-mobility-ev-
consumption: The interaction of gain, adoption.html
normative and hedonic motivations on 5. Available:https://www.marketsandmarkets.
electric vehicle adoption. Business com/Market-Reports/electric-vehicle-
Strategy and the Environment. 2018; market-209371461.html
27(8):1272–1283. 6. Available:https://www.virta.global/global-
20. Belz FM, Binder JK. Sustainable electric-vehicle-market
Entrepreneurship: A Convergent Process 7. Available:https://unfccc.int/process-and-
Model. Bus. Strategy. Environment. 2017; meetings/the-paris-agreement/the-paris-
26:1–17. agreement
21. Philip R. Walsh. Innovation nirvana
or innovation wasteland? Identifying
_____________________________________________________________________________________________________
© Copyright Global Press Hub. All rights reserved.

25