A CONSUMER BEHAVIOUR PROJECT REPORT

On
Consumer Perception of Electric Vehicles in India
By
Yashi Garg
0201MBA057
MBA(3C)
BATCH: 2020-2022
Under the Supervision of
Dr. Broto Bhardwaj

CES-3
ABSTRACT

With the current depletion of fossil fuels and its price hike, there is a need for
another energy resource to run the vehicle. Electric vehicles are being considered
by India's automobile industry as a solution to the country's industry and
environment. Despite countries enacting EV policies, the current market
penetration of EVs is very low. The potential scope of electric vehicles in India
will be examined in this article, as well as consumer perceptions of them.
INTRODUCTION

The third-largest road network in the world is found in India. In India, road
travel appeared to be the main mode of transportation, with over 60% of the
population commuting by personal or shared vehicles.

Conventional vehicles contribute significantly to global warming and air

pollution. Dust is produced by all sorts of cars due to brakes, tyres, and road wear.
The typical diesel vehicle has a negative impact on air quality, but the average
gasoline vehicle has a positive impact. However, both gasoline and diesel
vehicles pollute the environment more than electric vehicles.

To discourage the purchase and use of more polluting cars, governments began
employing fiscal policies such as road taxes. Green taxes are imposed when re-
registering a car after 15 years of use in order to encourage consumers to switch
from polluting automobiles to fuel-efficient and less polluting vehicles. Fuel taxes
may serve as a spur for the development of more efficient, less polluting vehicles
and alternative fuels.

The National Electric Mobility Mission Plan (NEMMP) 2020, a National Mission
document that lays out the vision and, as a result, the road map for EV uptake and
manufacturing. This plan aims to improve national fuel security, provide
economical and ecologically friendly transportation, and help India's automobile
industry become a global leader in manufacturing.
LITERATURE REVIEW

Potential Need for Electric Vehicles, Charging Station Infrastructure and its
Challenges for the Indian Market: by Praveen Kumar and Kalyan Dash,
rather than making a massive adjustment, India can engage in small-scale
reinforcements to address load difficulties locally. Charging at home should be
promoted. Before constructing the large scale charging infrastructure, proper
planning of location, population, traffic density, and safety should be considered.
It is critical to integrate efforts in the energy and transportation industries. Drivers
of electric cars are offered a financial consumer incentive, such as tax credits,
purchase subsidies, discounted tolls, free parking, and access to restricted
highway lanes, which will assist the market grow.

Consumer preferences for electric vehicles: by Fanchao Liao, Eric Molin &
Bert van Wee, The widespread adoption of electric vehicles may help to alleviate
issues such as pollution, global warming, and oil reliance. EV penetration, on the
other hand, is comparatively low, despite governments' aggressive promotion
measures. They compared consumer preference for electric vehicles from an
economic and psychological standpoint. Financial and technical characteristics of
electric vehicles, such as their purchase and running costs, driving range,
charging duration, vehicle performance, and brand variety on the market, are all
proven to have a substantial impact on their usefulness.

Study on Electric Vehicles in India Opportunities and Challenges: by

Mohamed M, G Tamil Arasan, and G Sivakumar, The replacement of internal
combustion engines (ICE) with electric engines will significantly reduce
pollution while also providing a financial benefit to consumers. Many countries
have adopted this technology and are benefiting the environment as a result. The
study observed the advantages and disadvantages of EV implementation in India.
Government initiatives, batteries, industries, and the environment have all been
taken into account. Cost of electric vehicles, efficiency of electric vehicles in
India, and demand for electric vehicles were all taken into account. In India, the
usage of electric vehicles is largely intended to reduce greenhouse gas emissions
and oil costs.

Perception and Awareness Level of Potential Customers towards Electric

Cars: Masurali.A, Surya P, In terms of carbon emissions, India is responsible
for over 18% of them in the transportation sector alone. One of the most viable
alternative answers to the issues is the electric vehicle (EV). Several automakers
are introducing electric vehicles and diversifying their product lines. Promoting
electric vehicles (EVs) can help reduce fuel reliance and pollution, which is good
for both buyers and the economy. People's levels of awareness of EVs are
substantially influenced by their education. Apart from manufacturers, the
government should make a concerted effort to raise awareness and generate
favourable perceptions among potential buyers.

Electric Vehicles for India: Overview and Challenges: by Mr. A. Rakesh

Kumar, Dr. Sanjeevikumar Padmanaban, Global pollution is increasing, and
every attempt is being made to reduce CO2 emissions and rescue the planet. The
introduction of electric vehicles is one such initiative. Because transportation is
one of the greatest CO2 emitters, it is critical to cut emissions. The government
has devised ambitious plans to bring electric vehicles to the Indian market and
keep up with global trends. An in-depth report on EVs was included in the
National Electric Mobility Mission Plan 2020. India faces a significant hurdle in
transitioning from internal combustion engines to electric vehicles.
RESEARCH METHODOLOGY

This study is descriptive to explore the consumer preference for electric vehicles
towards the global market about electric cars. Both primary and secondary data
were used in this study. Secondary data used for collecting information on
published sources like magazines, books, journals, and annual reports, etc. about
electric vehicles for a clear understanding of the concept. Primary data were
collected using a questionnaire. The first part of the questionnaire consists of the
consumer's demographic profile, and the second part consists of five-point
scaling questions relating to consumer preference for electric vehicles. The
sample size is limited to 50 and convenient sampling techniques adopted, using
suitable statistical tools like percentage analysis.

OBJECTIVES OF THE STUDY

1. To study consumer preference for electric vehicles and its global market
2. To know the effectiveness of electric cars and their global market.
3. To find out consumer preference towards electric vehicles.
ANALYSIS AND FINDINGS OF THE STUDY

Demographic Profile of the Respondents

1.

In this study, Out of 50 respondents, 46% were under the age group of below 25
years, and 36% of respondents fall under the age group of 26-30, 12% fall under
the category of 31-40, 6% fall under the category of 41-50.
2.

Majority of the candidates were female that constitute of 56% and 44% were
male.
3.

Majority of the candidates, 54% of the respondents have done their under-
graduation 38% have done their Post-Graduation, whereas 6% of respondents
have done their high school. The demographic profile is used to frequently
segment the market, as well as understand the market segment of consumers helps
the marker to know about the target group helps to achieve the highest position
in the competitive marketing scenario.
4.

Statement Strongly Disagree Neutral Agree Strongly

disagree agree

Electric cars 1 1 4 25 19
can protect
from global
warming
Electric cars 0 5 21 16 8
can replace
regular cars
in terms of
satisfying
consumer
needs
Electric cars 1 8 18 12 11
can save a lot
of money to
the owner
Electric cars 1 2 8 26 13
are very
expensive
Maintenance 2 12 10 17 9
Infrastructure
is well
developed
5.

Respondents were being asked about the various factors which influences the
purchase decision of a vehicle. Majority of respondents consider environment
friendly as very influential, whereas they consider new trends, finance and
insurance benefits and cheaper in operation as moderately influential factors.
6.

Majority of the respondents considers blogs as the major source through which
they get maximum information about electric cars, followed by television, live
demo, magazines and newspaper ads respectively.
7.

Statements Strongly Disagree Neutral Agree Strongly

Disagree Agree
Buying 1 3 18 19 9
electric car
will have
positive
effect on my
image
Buying 0 5 22 17 6
electric car
will show
my beliefs
and what I
stand for
Buying 2 8 21 17 2
electric car
does not
have any
influence on
my self
image
8.

Respondents considers limited charging stations available as major

drawback/limitation to consider EVs in current situation, followed by initial cost
to purchase, difficulty in charging and limited choice respectively.
9.

48% of the respondents believe that they will own a electric vehicle in next 10
years while 30% will own a electric vehicle within next 5 years and only 10% of
consumers planning to buy a plug-in car as soon as possible. And they're mainly
making that decision because of the environmental impact. 12% are not sure
whether they want to buy or not.
SUGGESTIONS

• Since there exists a strong relationship between awareness levels of

customers on E- Vehicles and purchase patterns, the government should
try to create more awareness and make some rules like 1 electric vehicle
per house.

• Sustainability is the answer the most environment problems and EV &

HEV are was to sustainable development

• Government has to give subsidy for purchasing EV so that more people opt
for it. By this we can reduce pollution to a great extent and contribute for
the betterment of society and our future generations. Also existing EV’s
are high on maintenance cost, if this is taken care then people would
definitely go for it without giving a second thought. Companies like Ola
and Uber can concentrate more on bringing EV since majority of vehicles
on road are taxis.

• Pure electric vehicles (BEVs) currently make up 66 percent of the global

EV market. BEV sales are growing faster than those of plug-in hybrid
vehicles (PHEV). However, specific needs have very different powertrain
preferences, influenced by regulatory actions, customer choice, and the
availability of particular models. However, in an attempt to reduce
spending on subsidies while still encouraging EV sales, the government
recently communicated a change in the incentive policy. On the one hand,
it raised the minimum range to qualify for any incentive to 150 kilometers
(up from 100) and the energy-density requirement to 105 watt-hours per
kilogram (up from 90). Therefore, consumers are not influenced by
 monetary incentives for spreading consumer preference on electric
vehicles. Companies must consider this in their marketing plan to electric
cars as one of the strategies for a cheaper cost.

CONCLUSION
People started using the consumer preference on electric vehicles for sharing
information, for the recommendation, and to increase the knowledge and
consumer preference with their electric cars. Electric cars are an effective
strategy, an essential tool for all business concerns, which can integrate social
networking and marketing strategies according to changing and developing
consumer behaviour expectations to achieve organizational goals. Consumers
will share their opinions on electric cars with or without company interaction.

Hence, it is the best method for promoting companies’ products, creating brand
awareness through integrated marketing strategies. Entry into network and
marketing has low entry barriers, and consequently, any company can do it. Based
on this research and other studies, we recommend that organizations focus on
electric vehicles to create consumer awareness and introduce new products. This
strategy has low cost and more impact on customers for marketers because
customers have more trust in their family and friends than company
advertisements. With the depletion of fossil fuels and constant hike in fuel prices,
there is a need for energy transition in vehicles in India. Govt has taken initiative
to fight pollution levels by promoting EVs and giving subsidies on purchase. To
boost its production, Govt has eased the FDI norms. Various emerging brands are
launching EVs in India. The Government and manufacturers should join their
hands to build the infrastructure and create positive environment for EVs.
The respondents are aware of global climate conditions and are ready to change
their preference from conventional to eco-friendly vehicles. Cost is an important
factor while considering the purchase of EV. Respondents are willing to consider
EVs as their future purchase option, if proper infrastructure is available. Initial
cost of purchase, less number of charging stations and the time required to
recharge the battery is creating limitation in boosting consumer confidence.
REFERENCES

• https://www.slideshare.net/PunithPrajwal/consumer-perception-
of-electrical-vehicles-in-india
• http://psychologyandeducation.net/pae/index.php/pae/article/vie
w/1623
• https://www.surveymonkey.com/r/3R7HLT5
• https://ejmcm.com/pdf_7216_a56db3d7f55a5b1ac66729c3a1ce
910e.html