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CONSUMER ACCEPTANCE OF ELECTRIC CARS WITH REFERENCE TO INDIAN

MARKET

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CONSUMER ACCEPTANCE OF ELECTRIC CARS WITH REFERENCE TO INDIAN

MARKET

Executive summary

With the current depletion of fossil fuels and its price hike, there is a need for another energy
resource to run the vehicle. The automobile sector is considering Electric vehicles as a solution
to the industry and environment in India. However, the current market penetration of EVs is
relatively low despite governments implementing EV policies. Through this paper potential
scope of Electric vehicles in India will be studied and Consumer perception of the same will
be analysed.

Keywords: Electric vehicles, Consumer perception, Choice of vehicle, Environment,

Conventional vehicle, Government policies

INTRODUCTION

India is a country with the third-largest road network in the world. Road travel seemed to be a
preferred choice in India with over 60 % of the population using personal or shared vehicles to
commute. ( Statista ) Conventional vehicles are a major cause of global warming and
environmental air pollution. All types of vehicles produce dust from brakes, tires, and road
wear. The average diesel vehicle has a worse effect on air quality than the average gasoline
vehicle. But both gasoline and diesel vehicle pollutes more than electric vehicle. The scheme
is proposed for establishing charging infrastructure (Jose, 2018) The National Electric Mobility
Mission Plan (NEMMP) 2020, a National Mission document providing the vision and therefore
the roadmap for the faster adoption of EVs and their manufacturing.

This plan has been designed to boost national fuel security, supply affordable and
environmentally friendly transportation, and enable the Indian automotive industry to attain
global manufacturing leadership. (Gulati, 2013) FAME was divided into two phases with the
first phase (FAME I) focusing on four focus areas, namely demand creation, technology
platform, pilot project, and charging infrastructure (GoI, 2015b). FAME I was initially
introduced as a two-year scheme to last from April 2015 to March 2017, but the period was
later extended by two more years till March 2019. Between April 2015 and March 2019, FAME
I provided total financial support of INR 5.3 billion (approximately US$ 125 million) (GoI,
2015b). A total of 278,000 EVs were supported with total demand incentives of INR 3.4 billion
(US$ 80 million).
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LITERATURE REVIEW

Potential Need for Electric Vehicles, Charging Station Infrastructure and its Challenges
for the Indian Market: by Praveen Kumar and Kalyan Dash. India should invest in small
scale reinforcements to manage the load issues locally rather than going for an enormous
change. Home charging should be encouraged. Proper planning of place, population, traffic
density and safety should be considered before implementing the massive scale charging
infrastructure.

Consumer preferences for electric vehicles: by Fanchao Liao, Eric Molin & Bert van
Wee, Widespread adoption of EVs may contribute to a lessening of problems like
environmental pollution, global warming and oil dependency. However, this penetration of
EVs is comparatively low despite governments implementing strong promotion policies. They
presented a comprehensive review of studies on consumer preferences for EVs aiming to
convey to policymakers and give direction to further research.

International Council on Clean Transportation: Lingzhi Jin, Peter Slowik, Study on

Electric Vehicles in India Opportunities and Challenges: by Mohamed M, G Tamil Aras
an, and G Sivakumar, The replacement of ICE with electric engines will reduce pollution to
the the the a great extent and be profitable to consumers. Many countries have implemented
this technology and are contributing to the improvement of the environment. The researcher
saw the opportunities and challenges faced in India over implementing EVs. Opportunities like
Government Initiatives, Batteries, Industries, and Environment have been considered. These
challenges like the cost of EVs, the efficiency of EVs in India and the demand for EVs were
taken into consideration.

Electric Vehicles in India: Market Analysis with Consumer Perspective, Policies and
Issues: Pritam K. Gujaratis, Varsha A. Shah, Makarand M. Lokhande, Indian Scenario is
different because the current market share of EV/PHEV is around 0.1%. Presently almost all
vehicles consider fossil fuel-based transportation. These pollute the atmosphere by the
emission of greenhouse gases & cause global warming. The gap between domestic petroleum
production and consumption is widening. India imports around 70% of the oil required per
annum. Hence there's an urgent need to investigate factors and challenges for sustainable and
cleaner alternatives. (Pritam K. Gujaratis, 2018)

Perception and Awareness Level of Potential Customers towards Electric Cars:

Masurali. A Surya P, India contributes around 18% in the transport sector alone in terms of
carbon emissions. The Electric Vehicle (EV) is one of the foremost feasible alternative
solutions to beat the crises. Several automotive companies are introducing EVs and expanding
their portfolio. Promoting EVs can help reduce fuel dependence and pollution and is beneficial
for both consumers and the nation.

A Study of Consumer Perception and Purchase Intention of Electric Vehicles: Pretty

Bhalla, Ines Salamah Ali, A froze Nazneen, Choice of cars depends upon environmental
concern, cost, comfort, trust, technology, social acceptance, infrastructure availability. These
arguments have been tested for both conventional cars and EVs. They assume that these factors
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have a direct influence on individual choice of vehicle. They found that EV manufacturers and
Government have to invest more in social acceptance of the vehicle by creating more
infrastructural facilities, and putting more thrust on technology to create trust.

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

Sanjeev Kumar Padmanabhan, Global pollution is on the rise and each effort made, is to cut
back the CO2 emissions and save the earth. One such effort is the introduction of EVs. The
transport sector is one of the largest emitters of CO2 and hence it's important to reduce it. The
government has come up with ambitious plans of introducing EVs to the Indian market and
confine pace with the event of EVs globally.

Opportunities and Scope for Electric Vehicles in India: by Janardan Prasad Kesari, Yash
Sharma, and Chahat Goel, Developing an aggressive strategy for the adoption of EVs in
India and ensuring a well-executed implementation is a challenge but vital for the government.
The geography and diversity of India will present problems that require thoughtful solutions.
Public procurement is expected to be an important driver of the growth of EVs, with the
purchase of four-wheeled vehicles for government offices, three-wheeled vehicles and buses
for public transport.

OBJECTIVE

• The objective of this paper is to understand consumer perception and the factors important
for the purchase of EVs in India.

• The objective of this study is to know the demand of the consumer for the electric vehicle. •
To know the acceptance rate of electric vehicles in Lucknow • Consumer thought about the
electric vehicle

• History of the electric vehicle NEED FOR THE STUDY: The main purpose of the current
study is to explore the key factors influencing potential customers' actual purchase of electric
vehicles, to provide reasonable policy suggestions for the government and electric
informativeness service benefactors. Based on the planning behaviour theory, this paper
constructs a framework that affects the actual purchasing behaviour of electric vehicles.

REASONS WHY EVS ARE BECOMING POPULAR

An electric vehicle, unlike a conventional vehicle, is quite stretchy. This is because of the less
sum of moving fragments that are significant in employing a conventional vehicle. It can be
run by different control mechanisms. In fresh times, electric vehicles are on the massive rise,
there are various motives. The most bulbous one is their influence on reducing pollution. In
2009, the transportation sector was accountable for 25% of the greenhouse gases produced by
energy-related sectors. At the outset, electric mobility is widely considered to be an effective
way to improve air quality and fulfil atmosphere necessities.

Go Electric campaign The government launched the Go Electric campaign at the start of 2021
to encourage the adoption of electric mobility vehicles and electric cooking appliances and to
ensure energy security in the country. Road Transport and Highways Minister Nitin Gadkari
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launched the campaign, saying Go Electric is a future for India that will promote low-cost,
environmentally friendly and indigenous electrical products.

Delhi

In 2019 the Delhi Government approved 1,000 low floor AC Electric buses to be used in
Delhi’s public transport system. The buses have CCTV, Automatic Vehicle Tracking System
(AVTS), panic buttons and panic alarms. The subsidy given by the government is up to Rs 75
lakh or 60% of the cost of a bus, whichever is lesser, but until now only 1 bus has been inducted
by the state government.

Karnataka

approved Electric Vehicle and Energy Storage Policy 2017. It aims to attract investment of Rs
31,000 crore and create around 55,000 employees. The union government has unveiled its
vision to make the country's all-electric vehicle market by the year 2031 to reduce dependency
on fossil fuels and reduce its carbon footprint.

Maharashtra

The Maharashtra Government is focusing on increasing EV use in the state by proposing to

exempt EVs from road tax and providing a 15% subsidy to the first lakh EVs registered in the
state. To improve suitable infrastructure, the government proposed to provide a maximum
subsidy of Rs 1 million (~$15,549) per charging station up to the first 250 charging stations
that are set up in Maharashtra.

Uttarakhand

In 2018, the Uttarakhand Government introduced a new scheme to help the manufacturing and
promote the use of EVs as well. The scheme would provide companies with loans ranging
between Rs 10 crore and Rs 50 crore to build EVs and charging infrastructure. The scheme
also doesn't charge motor tax for the first lakh customers of EVs for five years.

BENEFITS OF ELECTRIC VEHICLES

• Electric vehicles are around 3-5 times more efficient than internal combustion vehicles in
utilising energy. Even if electric vehicles run on electricity produced from fossil fuels, the
overall efficiency of electric vehicles is still higher and the pollution is less, because large
thermal power plants are much more efficient than IC engines, and it is easier to control
emissions from power plants than vehicle engines.

• Electric vehicles save energy by regenerative braking. Around 30%-70% of the energy used
for propulsion can be recovered, with higher percentages applicable to stop-and-go city driving.
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• Air quality indices related to India indicate that the air in many cities of India is no longer
healthy. Automobile related pollution has been one of the causes of this.

• Aspects related to global warming need a shift to automobile solutions that reduce/do not
produce greenhouse gas emissions. If electric vehicles run on electricity produced from non-
polluting sources of energy like hydro, solar, wind, tidal and nuclear, they reduce emissions
due to vehicles almost to zero.

• India can become a global provider of clean mobility solutions and affordable and scalable
processes.

RESEARCH METHODOLOGY

A descriptive research methodology is used.

Primary data from a sample population of 212 is collected using an online questionnaire.
Secondary data has been collected through websites.

DATA ANALYSIS AND INTERPRETATION

The sample size is 212 out of which 60.4% are male and 39.6% are female. 7.5% of respondents
fall under the age group of 18-23 yrs., 55.7% in 24-40 yrs., and 27.8% in 41-55 yrs. and 9%
are 56 yrs. & above. Interpretation: 90.1% were in favour of eco-friendly vehicles and 9.9%
favoured conventional vehicles. Respondents are aware of climate conditions and are ready to
change their preference for eco-friendly cars. Interpretation: When asked about the choice of
vehicle, respondents majorly selected hybrid vehicles. Interpretation: Cost being an important
factor, the customer expects EVs in the 5-10 lakhs range.

FURTHER SCOPE AND RECOMMENDATIONS:

• It is recommended that future investigators use different methods from this study to
investigate electric vehicles and compare the changes to promote the universalization of
electric vehicles.

• The discussion in this study is limited to electric vehicles. It is recommended that future
researchers compare whether different energy vehicles with different principles are related to
assorted influences on consumer demand.

• Concerned with consumer demand, this study does not focus on electric vehicle-related
technologies. It is recommended that future researchers connect industry and consumers from
the manufacturing and industrial observations of electric vehicles.

LIMITATIONS AND SCOPE FOR FUTURE WORK

Like any research study, this paper is not without limitations. The first limitation is that the
survey was carried out only in Delhi NCR. This was mainly due to challenges in getting data
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on and from EV customers in other cities, EV sales being restricted to a handful of Indian cities
and the fact that Delhi NCR is the largest market for automobiles in India.

EV sales had picked up some pace in 2019–20 but might get impacted due to Covid-19 in the
next few months. Many Indian cities have started setting up EV charging infrastructure. As
more charging infrastructure comes up in several cities and as more EVs are introduced in the
Indian market, EV sales may pick up again across India.

Future studies can collect data from consumers across cities to forecast consumers' adoption
intention. Finally, future studies can also consider the relative impacts of government policies
at different levels, central, state, and local. This is because policies for EV support are being
provided in India at not just the national level but state level in many states and the city level
in some cities.

CONCLUSION: -

EV and HEV have their opportunities and obstacles, but it all comes down to us as to how we
choose to see it, therefore through this study we want to know and comprehend what proceeds
in the minds of the consumers and whether or not they are willing to do their bit in maintaining
a sustainable environment he fast-depleting fossil fuels and increasing environmental concerns
are playing a major role in promoting the developments in the field of EVs and their charging
infrastructure.

In the present study, it is found that the recent trends in research are more focused on the
development of new and fast EV charging infrastructure that can minimise the charging time
of EVs, increase the utilization of available renewable energies for Charging, minimization of
grid dependency for EV charging, and the optimal location of charging stations, which is
mainly focused on planning a new location network.

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