A highway of the slow road adoption of electric cars in developing countries: is this a factor?

Purpose The global automotive car industry is transforming from conventional vehicles to electric cars. The purpose of this study is to determine the effect of product design, price promotion, government subsidy policies and brand reputation on purchase intention electric cars and government subsidy policies and brand reputation as moderating factors. Design/methodology/approach A sample of 1,230 electric car consumers in Indonesia was collected and analysed. Survey techniques were used for online and offline data collection, distributed directly to consumers and through social media. Structural equation models were used for data analysis, along with the SmartPLS programme. Findings Key findings show government subsidy policy, brand reputation, price promotion and product design can encourage and positively influence consumers’ purchase intention of electric cars. Meanwhile, price promotion and product design can enhance brand reputation. However, the role of government subsidy policy is not significant in moderating the relationship between price promotion and purchase intention. On the other hand, brand reputation can moderate the relationship between price promotion and electric cars purchase intention. Originality/value The research model structure that has not been previously tested together, involving five variables: product design, price promotion, brand reputation, government subsidy policies and purchase intention, as well as testing the moderating roles of government subsidy policies and brand reputation with electric cars as the object of study located in Indonesia.