Transition to green mobility: a twin investigation behind the purchase reasons of electric vehicles in the Indian market

Abstract

Purpose

The study aims to fulfil two objectives, namely, to explore what dimensions comes into play in the current consumer EV purchase behaviour based on relevant literature identified in the past and to find out whether there are other reasons that are peculiar to the Indian automobile market which influenced consumers to adopt this eco-friendly technology.

Design/methodology/approach

Mixed method approach for collecting the primary data was used. The study was conducted in five cities across India, through a questionnaire administered to 266 existing EV owners using judgemental sampling, that included dimensions as to what made them purchase EVs (any variant whether hybrid or battery) and encouraged their green behaviour. Moreover, the survey also took care of gathering other motivational constructs that may have played a significant role in the Indian EV market. To take care of this, use of single open-ended question was done. Statistical techniques like exploratory factor analysis (EFA) and Partial Least Square-Structural Equation Modelling (PLS-SEM) version 4.0 were performed to gain meaningful insights from this investigation.

Findings

Based on our analysis, EV purchase behaviour in the Indian market could be explained by six configurational paths identified in conceptual framework of this study. The data analysed revealed long-term operational benefits or relative advantages, trialability or prior driving experience and positive attitude towards EVs playing an important role towards EV purchase decision followed by environmental concern, social norms and personal values of Indian consumers. Besides, several other factors were identified in open comments like favourable government policies, brand consciousness, compatibility and functional benefits in terms of comfortable and noiseless driving which tend to drive the decision of Indian consumers towards buying EVs. The identification of these motivations can help policymakers in targeting the customer market accordingly.

Research limitations/implications

Although the study is restricted by its scope of sampling criteria, yet is distinct in its methodological approach and thereby adds value to existing literature on marketing and diffusion of EVs. The study explores the untapped gap in the current literature by helping identify reasons on the basis of which consumers made their choices of different EVs. Instead of analysing the potential antecedents of EV uptake, the study brings to light the actual reasons of EV purchase behaviour in the context of an emerging economy like India. That is to say, the horizon of EV motivations spans across technological, individual and regulatory attributes in the Indian automobile market.

Practical implications

This study is relevant and fulfils the underlying gap in the existing literature related to actual motivations that consumers look for before buying a high involvement product such as EVs. The results can be beneficial for marketers to design effective marketing strategies from the perspective of consumers. Promotional strategies addressing ease of using EVs and how battery technology is better than before needs to be clearly communicated by the marketers. Consumer education is necessary, in this regard, to make people aware of the rising air pollution levels. They have to be made understood the real advantages of owning EVs and how these non-conventional vehicles are far better when compared to traditional cars. In a nutshell, the study underscored potential determinants or reasons that made Indian consumers to go for EVs, based on statistically significant evidences which can be crucial for stakeholders operating in the Indian EV industry.

Social implications

The study has important implications for members of the community. By sacrificing their egoistic tendencies or individual preferences for energy intensive products such as ICE based vehicles, people can imbibe altruistic orientation and can contribute to the collective benefit of all by shifting towards energy rich vehicles powered by electricity. This is necessary to achieve the broader goals of sustainable development and to curtail the rising climate change phenomenon.

Originality/value

The study applied both quantitative (deductive) and qualitative (inductive) approach to study into the reasons for consumers’ purchase motivations towards electric cars. Taking a distinct methodological approach, the study enhances the knowledge on EVs by asking consumers to comment in their own words as to why they purchased EVs. This was necessary so as to better explore the needs of the Indian automobile market and which factors govern the purchase of EVs in domestic market. Past literature majorly focused on purchase intention towards EVs but this study in unexampled and analysed the purchase behaviour towards EVs. It should be noted that our investigation reveals the complexity of EV purchase reasons than those identified in past literature and it adds to the current pool of literature on EVs by explaining factors with unrivalled illustrative power.

Citation

Arora, S.C. and Singh, V.K. (2024), "Transition to green mobility: a twin investigation behind the purchase reasons of electric vehicles in the Indian market", The Bottom Line, Vol. 37 No. 3, pp. 277-308. https://doi.org/10.1108/BL-08-2023-0249