Understanding Consumer Perceptions and Purchase Intentions of Electric Vehicles: An In-Depth Analysis

Abstract

With the current depletion of fossil fuels and its price hikes, the need of the hour is an alternative source of energy for the vehicles. Electric Vehicles are the solution for the industry as well as for the environment in India. However, the current market penetration of electric vehicles is rather low. There is a need to study the factors influencing the consumer’s acceptance of such electric cars. Various factors that influence the purchase decision of car buyers are based on individual perception of dimensions like environmental issues, cost, trust, technological advancement, infrastructure and societal acceptance. The results of the study show that positive environmental effects associated with electric cars along with the no costs of fuel involved happen to be the biggest motivators for the consumer when it comes to purchasing electric cars. On the contrary, cost of the electric car and lack of charging infrastructure happen to be the factors which demotivate adoption of electric cars. Thus, to promote the sales of electric cars the government has to play a leading role by developing satisfactory infrastructure, creating environmental policies, subsidizing the cost of the electric vehicles and providing financial incentives like lower interest rate on car loans and tax reductions on the purchase of electric cars. Through this paper, the potential scope of electric cars in the city of Kolkata will be studied and the consumer perception for same will be analysed.

Keywords: Electric Vehicles, Electric Cars, Consumer Perception, Fuel-Based Vehicles, Environment, Government Policies

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