Heterogeneity in Electric Vehicle Adoption: Indian Consumer Preferences
Rajeev Ranjan Kumar, Alok Raj, Prateek Sharma
Abstract
This study aims to explain the heterogeneity in individual purchasing decisions toward electric vehicles (EVs). To achieve this, we conducted a stated preference experiment among Indian consumers regarding EV adoption, using a two-stage integrated choice and latent variable model. Neo-classical and lifestyle theory is employed to examine consumers' purchasing decisions. Our findings indicate that consumers place more emphasis on the purchase price of EVs rather than the annual savings accrued from EV usage. Additionally, we observe that risk-averse behaviour is negatively, while social influence is positively associated with the consumer's likelihood towards EVs. We categorize consumers into three segments: “conservative”, “indifferent”, and “enthusiast”, to explain the heterogeneity in their preferences based on the charging station availability, annual usage, and household income. The study reveals that consumers in regions with fewer charging stations or those with low vehicle usage are more risk-averse compared to those in regions with a higher density of charging stations or higher vehicle usage. Regarding demographics, younger consumers and those with prior car experience are more inclined to adopt EVs. This study provides valuable insights that could assist governments and policymakers in formulating strategies to facilitate the adoption of electric vehicles.