Exploring the Effect of Price, Performance and Environmental Sustainability in the Adoption of Electric Vehicles

Objective: The study investigates how performance, price and environmental sustainability influence customer behaviour towards electric vehicle adoption in Indore, India. Methods: The study employed a mixed-method, descriptive and exploratory design. It administered a questionnaire to 438 respondents in the year 2023-24 in Indore. Data analysis was done based on a theoretical framework drawn from the literature, and correlation and MANOVA tests were performed to analyze the correlations between various sustainable factors of EV adoption in four-wheeler and owned vehicle segments. Findings: This study on electric vehicles (EVs) has examined correlations relating to age, performance, price, and environmental concerns. Age was found to have a negative correlation with EV price (-0.036), a weak correlation with performance (0.025), and a weak correlation with environment (0.019). Performance strongly correlated with price at 0.560, performance and environment at 0.355, and price and environment at 0.429. The results of MANOVA reported no significant differences in EV adoption case-wise for the age groups of 18-24, 25-34, 35-44 and 45+. Although Wilk's Lambda of 0.991 and partial Eta Squared of 0.003 supported the null hypothesis. Discriminant analysis identified performance and environment instead of price; performance and environment sustainability are the two key factors that have higher significance in EV adoption among the age group 35-44 and 45+. Novelty: The study provides a new perspective on EV adoption by challenging age-based marketing strategies. Environmentally conscious consumers are willing to pay a premium price for EVs, considering it a long-term sustainability investment. The study highlights performance and environmental benefits as key drivers of adoption, particularly among aged consumers, contracting traditional assumptions that younger demographics are the primary market for EVs. Keywords: Indore, E-vehicles, Perception, Adoption, Sustainable Transportation