Navigating the Path to Electric Vehicle Adoption: Assessing the Influence of Consumer Subsidy Awareness and Product Preference on Purchase Readiness

Abstract

Consumer purchase readiness for electric vehicles (EVs) remains an area that needs to be explored in scholarly research. This study investigates the factors influencing consumer readiness to purchase electric motorcycles (EM) and electric cars (EC), including subsidy awareness and vehicle preferences. The study conducted in four cities across Indonesia engaged 1713 participants selected through convenient sampling. Data collection utilised an online questionnaire. The findings hold significance for the automotive industry, particularly electric vehicle manufacturers and governments involved in subsidy allocation. The results reveal that subsidy awareness positively influences preferences for both EM and conventional motorcycles (CM) and readiness to purchase EM and EC. However, contrary to expectations, consumers' preference for EM does not significantly impact their readiness to purchase, highlighting the nuanced dynamics of consumer behaviour. Additionally, while EC preference positively affects readiness to purchase conventional cars (CC), CM preference does not significantly influence EM purchase readiness, suggesting further exploration. These findings contribute to a deeper understanding of consumer behaviour in the context of EV adoption and underscore the importance of subsidy awareness in shaping consumer preferences and purchase readiness. The study's implications extend to policymakers and industry stakeholders, emphasising the potential of targeted interventions to promote EV adoption and sustainable transportation practices.