Factors Influencing EV Purchase Decisions and Behaviour
Deepanshu
Under the Guidance of Dr. Anabel Benjamin Bara
Master of Business Administration
Faculty of Management Studies
University of Delhi
Introduction
At this turn in history, the global automotive industry stands at a very crucial point since it is moving from a vehicle with a traditional internal combustion engine (ICE) to electric vehicles. One of the reasons for this transition is the urgent need to reduce carbon emissions in combating climatic change, a phenomenon that has been fueled by decades of dependence on fossil fuels. EVs provide a future road that is capable of an alternative to ICE-based vehicles, primarily because there are no tailpipe emissions. This would highly reduce the environmental impact of transport. Not merely a technological evolution, it is indeed a historical necessity toward completing the sustainable development goals, among which reduction in greenhouse gas emission and improvement in air quality represent two of the challenges at the top of the stack.
There are growing demands for EVs due to increased environmental awareness and tremendous technological improvements in addition to policies by governments that support sustainable energy utilization and economically sound factors such as rising fuel prices. Other attractions involve favourable government incentives of governments of other countries in addition to strict regulations, which lays a solid platform for the usage of EVs, and advancements in technology regarding batteries are doing well in increasing ranges and reducing costs further. In addition, growing awareness about climate and environmental degradation has led to public awareness at an all-time high which makes consumers want to choose environmentally friendly transportation. However, the above encouraging trend, the adoption rate of EVs is very spotty across regions and demographic segments.
Divergent rates of adoption of EV reveal the complex factors interacting in consumer behaviour and choice. The high initial cost and fear of not saving money in the long run are important economic factors that keep the potential buyer from owning an EV. There are also infrastructural challenges such as the availability of charging stations that shape consumer choices alongside economic factors. Cultural and social factors, for example, attitudes toward technology, and status perceptions concerning vehicle ownership, differentiate the type of adoption in each market. Understanding these diverse influences will accelerate the transition toward more sustainable transportation solutions.
