THE FACTORS INFLUENCING THE ELECTRIC VEHICLE BUYING INTENTIONS

The number of motorized vehicles will be doubled until 2050 while bringing the associated problems like air pollution, greenhouse gas emissions and noise pollution as well as some concerns like uncertainty of sustainable supply regarding the use of oil-based fuels, which is the main energy source of transportation. The investments on environmental technologies have resulted in production of hybrid and electric cars, which can make an important contribution towards sustainable mobility while meeting the environmental demands of the future. A research of 2017 done by Serkan Baran ÖZ in Netherlands to measure the impact of factors on the buying intentions and purchase decision of EVs by contribution of 1144 respondents, shows that both human related factors and car related factors have a significant effect on the EV buying intentions of the consumers. The technologic factors especially related with batteries are among the most important factors; however, the monetary factors such as initial cost can boost the EV sales. In addition, socio-cultural factors such as being environmental conscious and technology enthusiasm have big effect on EV purchase behavior. Furthermore, the expectation of people from the Dutch government is high in terms of policies and incentives.

To what extent do the geo-demographic factors influence EV buying intentions?

There are nine aspects of geo-demographic factors. Five factors have no relation with both EV usage and EV purchase, which are age, occupation, country of origin, regions and family size. In addition, while gender has relation with EV usage only, marital status and family income has relation with EV purchase only. Furthermore, education level is the only factor in that group, which has relation with both EV usage and EV purchase.

Despite males are more technology enthusiastic and their interest towards EV usage is higher, there is no relation between gender and EV purchase. Married people are more environmental conscious and their interest towards EV usage and EV purchase is higher. However, there is no significant relation between marital status and EV usage. The families with higher income are more environmental conscious and their interest towards EV purchase is higher. However, there is no significant relation between family income and EV usage.

More educated people are more environmental conscious and more technology enthusiastic. Education has the only significant relation with EV buying intentions among geo-demographic factors.

To what extent do the socio-cultural factors influence EV buying intentions?

There are five aspects of socio-cultural factors and all have significant relation with both EV usage and EV purchase.

Being environmental conscious is one of the most important factors of socio-cultural group. The environmentalists have much more interest towards EV usage and EV purchase. Technology enthusiasm is another important factor of socio-cultural group. The technology enthusiastic people have much more interest towards EV usage and EV purchase than the others. The EV buying intentions of BEV and PHEV owners are higher than HEV owners. In addition, the EV buying intentions of HEV owners are higher than ICEV owners. Despite there is no linear relation with car usage frequency and EV buying intentions, there is significant statistic relation between them. The people, who experienced an EV, have more interest towards EV usage and EV purchase.

To what extent do the car technology factors influence EV buying intentions?

There are seven aspects of car technology and all have significant relation with both EV usage and EV purchase.

Only one advantage of EV is related with car technology, which is “safety of cars”. However, it is ranked seventh out of eight in terms of importance. There are twelve concerns about EVs, where six of them are car technology factors. “Range of batteries” is ranked first, charging time and lifetime of batteries are fourth and fifth concerns respectively, which is followed by performance ranked the eighth. Style/comfort and safety are the least important concerns. Range of batteries and lifetime of batteries are the most influential factors of EV purchase among car technology factors with the influence over “high=4”. Technological features of cars is the least influential factor with the influence close to “medium=3”, which is followed by style/comfort.

To what extent do the monetary factors influence EV buying intentions?

There are four aspects of monetary factors and three of them have significant relation with both EV usage and EV purchase, which are purchase cost, maintenance cost and fuel cost. Resale value has no significant relation with EV buying intentions.

Two monetary advantages of EVs are ranked as third and fourth out of eight, which are fuel economy and less maintenance cost, where ecological advantages are the first and the second. There are only two monetary concerns out of twelve. Initial cost is the second concern about EVs and resale value is ranked eighth. Initial price is the most influential factor of EV purchase among monetary factors with the influence over “high=4”. Fuel advantage has the influence close to “high=4”. Maintenance advantage and resale values have the influence close to “medium=3”.

To what extent do the ecological factors influence EV buying intentions?

There are three aspects of ecology factors and all have significant relation with both EV usage and EV purchase.

Two ecological factors are the most important advantages of EVs, which are low greenhouse gas emissions and decreasing dependency on petrol. The silence of EVs is ranked as the fifth advantage out of eight. Low greenhouse gas emissions is the most influential factor of EV purchase among ecological factors with the influence close to “high=4”. Low noise of EVs is the least influential factor.

To what extent do the political factors influence EV buying intentions?

There are two aspects of political factors and both have significant relation with both EV usage and EV purchase. Some of respondents stated that the tax incentive over leased electric cars is very important because nowadays many companies use especially leasing incentives.

Tax incentives have the strongest correlation with both EV usage and EV purchase. 53% of people support government policies and 73% of people support government incentives related with EVs.

To what extent do the after-sales factors influence EV buying intentions?

There are three aspects of after sales factors and all have significant relation with both EV usage and EV purchase.

Limited charging stations is the third biggest concern of EVs, limited service points is the seventh concern and warranty is the least important concern out of twelve. Availability of charging stations and warranty period of batteries are the most influential factors of EV purchase among after-sales factors with the influence over “high=4”. Prevalence of service points has the influence close to “high=4”.

To what extent do the car dealer factors influence EV buying intentions?

There are two aspects of car dealer’s factors and both have significant relation with both EV usage and EV purchase. Free electricity promotions and free maintenance promotions are among the least influential factors of EV purchase with the influence close to “medium=3”.

In terms of human related factors, it can be concluded that socio-cultural factors are more influential than geo-demographic factors. In terms of car related factors, ecological factors are accepted as more advantageous than monetary factors. The concerns are mostly related with batteries (car technology), initial price (monetary) and charging points (after-sale). The most influential factors of EV purchase are related with car technology (range of batteries, lifetime of batteries), after-sales (availability of charging points, warranty period) and monetary (initial cost). In addition, political factors have the strongest correlation. Furthermore, car dealer’s factors are the least important factors among car related factors. Moreover, the car related factors are more influential for the people who want to purchase an EV than for the people who want to use an EV.

43% of people prefer to pay same price for an EV instead of ICEV while only 41% of people are ready to pay more money. In addition, the 52% high interest towards EV usage decreases to 38% when it comes to purchase. However, 73% of people agree to purchase an EV when recovery of the additional costs through lower fuel costs and lower maintenance costs in five years is possible. This research shows that monetary factors can boost the EV sales more than other factors. In addition, this research shows that if it comes to pay extra money for the lower CO2 emission, most potential consumers would prefer a lower purchase price than an environmentally friendly car. Furthermore, consumers mainly concentrate on the purchase price as well as on the whole-life benefits such as lower maintenance and fuel costs.