Ph.D.

Synopsis
CONSUMER BEHAVIOUR TOWARDS ELECTRIC VEHICLES

Submitted by
MEGHA

DEPARTMENT OF COMMERCE
UNIVERSITY OF DELHI
DELHI-110007
2024
Introduction:
The incorporation of electric cars (EVs) signifies a substantial transformation in
consumer conduct within the automotive sector. In response to growing apprehensions over
environmental sustainability and the imperative to decrease greenhouse gas emissions,
governments and car manufacturers on a global scale are aggressively advocating for the shift
towards electric mobility. Consumer behaviour towards electric vehicles is shaped by several
aspects, such as perceptions of EV technology, driving range, availability of charging
infrastructure, purchasing pricing, and government incentives. Gaining insight into consumer
attitudes and preferences about electric vehicles is crucial for policymakers and industry
stakeholders in order to formulate efficient strategies to expedite the acceptance and
utilisation of EVs. This introduction establishes the context for examining the intricacies of
consumer behaviour regarding electric vehicles, by investigating the factors that influence
consumer choices in the changing field of sustainable transportation, including motives,
obstacles, and decision-making processes.
Consumer behaviour refers to the comprehension of how individuals get, utilise, and
discard goods and services. Consumer behaviour encompasses the process by which a good
or service is acquired and delivered to its intended users. Having a comprehension of client
behaviour is typically advantageous when formulating any marketing strategy. A firm's
survival in a highly competitive environment is contingent upon its comprehensive
understanding of customer behaviour. Further elucidation of its significance can be observed
in the subsequent delineation of customer behaviour:
Consumer behaviour, as defined by the American Marketing Association, refers to
the manner in which consumers engage in their exchange-related activities in life by
dynamically interacting with their emotions and thoughts, conduct, and
surroundings.(Walters, 1974)
Consumer behaviour encompasses the decision-making process regarding the
acquisition, utilisation, and eventual disposal of various items and services by customers.
(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 efficacy of business marketing methods.
• Regulatory bodies engage in policymaking to promote behaviours that are
advantageous to both individuals and society at large.
• Consumer awareness of the tactics employed to modify consumer behaviour.

Factors affecting of consumer behavior:

The study of consumer behaviour primarily focuses on determining the potential

behaviour exhibited by a customer at both the individual and group levels. This study aims to
analyse the conduct of individuals when making decisions related to selecting, purchasing,
consuming, and disposing of food products or services. Furthermore, individuals of all
demographics, ranging from children to employed individuals in multinational corporations,
actively seek for components that fulfil their fundamental needs and desires. The field of
consumer behaviour aids in recognising the multiple factors that influence the decision-
making process and impact a user's purchasing behaviour. Customers from diverse
backgrounds, ethnicities, social circles, and psychological profiles can display distinct
behaviours when making purchasing decisions. Consumer behaviour is significantly
influenced by a range of characteristics referred to as determinants of consumer behaviour.
These various aspects can be classified into four primary categories: personal factors,
economic factors, societal factors, and psychological issues. The subsequent section aims to
determine the impact of these overarching elements on consumer behaviour.
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 environmental impact of greenhouse gas emissions from conventional internal

combustion engines (ICE) is considered a significant catalyst for the increasing and enduring
adoption of electric vehicles (EVs). Due to recent advancements in battery technology, power
electronics converters, control systems, and microelectronics, electric vehicles (EVs) are
anticipated to gain significant traction in the motor industry. Furthermore, these opportunities
have sparked the merging of electrical power and transportation networks in a manner that
was previously unimaginable.(Galus & Andersson, 2008)

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)

The transportation industry is the primary contributor to the increasing levels of

greenhouse gas (GHG) emissions worldwide. Electric vehicles (EVs) have the capacity to
replace traditional gasoline-powered vehicles with electric mobility, thereby tackling the
environmental degradation caused by transportation. Although electric vehicles provide
numerous environmentally friendly advantages, their market penetration ratio remains
notably low, particularly in poorer nations. The main factor contributing to the poor adoption
rate is the lack of customer motivation and awareness regarding the features of electric
vehicles (EVs). This paper employs the UTAUT model to evaluate consumer motivation and
environmental understanding regarding EVs. The sample consisted of 199 respondents from
India. The study findings indicated that factors inside the motivational setting had a
substantial impact on customer intentions to buy electric vehicles (EVs). UTAUT
incorporates perceived environmental awareness and technophilia as motivational factors. In
addition, A robust association has been shown between the variables of effort anticipation,
social influence, technophilia, perceived environmental understanding, and purchase
intention towards electric automobiles. However, the factor of performance expectancy does
not show a significant association. The study results provide valuable insights for
policymakers and automakers to develop successful marketing tactics that can increase
consumer motivation, knowledge, and the perceived value of electric vehicles in a sustainable
era. In the end, these regulations will incentivize consumers to purchase environmentally-
friendly automobiles, which will contribute to the reduction of carbon emissions from
transportation and the achievement of sustainable development goals (SDGs). (Abbasi et al.,
2021)
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)
Scope and relevance of study
The scope and relevance of consumer behavior towards electric vehicles (EVs) are
broad and significant, touching on all industries, public policy, and environmental
sustainability. In the wake of the increasing popularity of EVs, knowledge of consumer
behavior is a growing concern for automakers, governments, and environmental
organizations. Here's how it breaks down:

1. Consumer Preferences and Adoption Rates

- Market Demand: They understand the consumer's demand, and accordingly,
manufacturers design their cars to suit the needs of the customer: range, charging
convenience, price, or an aesthetic.
- Barriers to Adoption: Some consumers are still not ready to switch to EVs for
reasons such as high cost, limited driving range, lack of infrastructure, and battery longevity
concerns. These barriers must be identified so that manufacturers and policymakers can
address them.

2. Environmental Concerns
- Sustainability and Green Consciousness: More and more consumers are being
driven by environmental issues. This is why green technologies like EVs are in higher
demand, and companies need to be better at marketing their products towards the eco-
conscious consumer.
- Government Policies and Incentives: Consumer behavior is heavily influenced by
subsidies, tax breaks, and policies promoting EV adoption. Understanding how these
incentives affect consumer decisions is vital for shaping effective public policy and
encouraging greater EV penetration.

3. Economic Considerations
The long-term cost of ownership against the higher initial cost of ownership includes
saving fuel and maintenance, which consumers consider. Critical to auto manufacturers and
policymakers is being able to grasp this dynamic and build EVs into an economically viable
value proposition.
- Price Sensitivity: Demand for EVs remains sensitive to prices, especially in the
context of higher-priced markets. The cost of electric vehicles tends to be higher compared to
their ICE counterparts, hence price elasticity of demand would be essential in deriving a
suitable pricing strategy by a company.

4. Technological Awareness and Trust

- Perceived Technological Reliability: The perceived reliability of the technology
naturally determines or influences consumers' attitudes toward using EVs. Apprehensions
toward battery life, charging infrastructure, and overall reliability influence the adoption rate.
- Innovations and Trends: Autonomous driving, fast charging networks, and
advancements of battery technology are some features that have shaped consumer behavior to
a large extent. Consumers are constantly aware of developments in these areas, as do
automakers, while remaining competitive and meeting demand.

5. Cultural and Social Influences

- Social Status and Image: In some markets, owning an EV is associated with a
certain social status or lifestyle. Understanding the social dynamics of consumer behavior can
help companies target specific segments.
- Peer Influence: As EV adoption grows, consumer behavior is increasingly
influenced by peers, social groups, and even media portrayals of electric vehicles.

6. Impact on Related Sectors

- Charging Infrastructure Development: The adoption of electric vehicles by
consumers is linked to the convenience and accessibility of charging stations. Behavioral
insight can help strategically place the charging stations in a manner that maximizes
convenience and customer satisfaction.
- Energy Sector Implications: Introduction of EVs will raise ripples in energy use
patterns, grid management practices, and renewable energy integration into the grid.
Understanding behavior of consumers regarding their home charging versus public charging
enhances planning for energy infrastructure.
Research methodology
Research questions
1. What are the key factors influencing consumer adoption of electric vehicles in
urban vs. rural areas?
- This question explores how location, infrastructure, and lifestyle affect the
decision to purchase an EV.

2. How do environmental concerns and sustainability awareness impact

consumer willingness to pay a premium for electric vehicles?
 - This investigates the role of environmental consciousness in driving demand for
EVs and how much more consumers are willing to spend on sustainable options.

3. How do perceived barriers, such as range anxiety, charging infrastructure,

and vehicle price, affect the adoption of electric vehicles?
- This examines the obstacles that consumers perceive and how they influence the
decision to purchase an EV.

4. What role do government incentives, such as subsidies and tax rebates, play in
shaping consumer attitudes and purchase decisions regarding electric vehicles?
- This question looks into how public policies and incentives can influence the
market for EVs.

5. How do consumer perceptions of electric vehicle brands, including trust,

reliability, and brand reputation, influence their purchase decisions?
- This explores how the brand image and consumer trust in electric vehicle
manufacturers can impact buying behavior.

Surveys and Questionnaires

Surveys with consumers owning or interested in electric vehicles can be valuable in

understanding their preferences, motivations, concerns, and barriers. Questions can include
issues such as environmental impact, purchase motivations, financial considerations, and
perceptions on EV infrastructure (charging stations, range, etc).
Examples of questions could include:
What motivates you to consider purchasing an EV?
What concerns do you have about EVs?
How important is price comparison in deciding between EVs and conventional
vehicles?

Qualitative Interviews:

In-depth interviews with potential or actual owners of EVs, industry experts, and
opinion leaders (such as auto-dealers or policymakers) would certainly help gain more insight
into the attitudes, experiences, and perceptions about EVs.
 These would bring to the fore some hidden influencers on the decision-making, such
as brand trust, government incentives, the cultural imperative of green choice.
Focus groups:

Focus groups can facilitate a discussion between consumers about their attitude
toward EVs, helping identify common trends, misconceptions, or emotional responses. Group
dynamics often generate new insights that might not come out in a one-on-one interview or
survey.
Observational Studies:

Observing consumer behavior at EV dealerships, charging stations, or through online

platforms (e.g., browsing behavior on EV websites) can offer insights into how people
interact with EV products and services in a real-world setting.
You can also observe the decision-making process at car dealerships—whether
consumers ask questions about EV features, consider test-driving an EV, or inquire about
financial incentives.
Purchase and Usage Data (if available):

Analyzing actual purchase data of EVs-e.g., through car sales reports or public
government databases on EV registrations-can give information about trends in consumer
adoption by demographics, regions, or income levels.
If possible, analyzing usage patterns of the use owners, such as charging frequency,
range concerns, or maintenance needs, can further increase the understanding of real-world
consumer behavior.
Social Media and Online Reviews:

Analyzing online discussions on platforms like Twitter, Reddit, or specialized

automotive forums offers direct consumer feedback, concerns, and experience with EVs.
Consumer reviews published on e-commerce sites or dedicated EV platforms can
reveal customer preferences regarding specific EV models, features, and level of satisfaction.
Public Opinion Polls and Reports:

Though these may not be primary field research, aggregated public opinion polls and
market research reports from companies like Nielsen, McKinsey, or Statista often provide
useful secondary data about consumer attitudes and trends about EV adoption.
Participation Data in Incentive Programs:
 Studying how different incentive programs (such as government tax credits, rebates,
or low-emission vehicle programs) influence consumer choices to adopt EVs could help
understand behavioral patterns.
By integrating most of these source types, you can get a more holistic view of the
behavior that consumers have regarding electric vehicles.
Here are five research questions focused on consumer behavior towards electric
vehicles (EVs):
Conclusion
The scope of consumer behavior toward electric vehicles ranges from purely
psychological to the social, economic, and technological fields. This study will be pivotal for
business organizations, policymakers, and researchers as it helps accelerate the transition into
a sustainable future driven by electricity. The research conducted on consumer behavior
informs product development and strategies regarding marketing; it further goes on to
determine the transportation, energy, and environmental policies of tomorrow.
.
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