Executive Seminar on Market Promotion of Electric Vehicle
Avant Garde Solution in collaboration with Kathmandu University School of Management and IETE Nepal Chapter organized a seminar program to disseminate their research findings on inadequate market achievement of Electric Vehicle. The findings were presented to prominent marketing practitioners from the automobile sector. The presentation was followed by panel discussion. The studies explored customers’ perspective on Electric Vehicle sector especially their perception and attitude towards purchasing the Electric Vehicles.
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2. Introduction
2
• Electric vehicle are driven by electric motors
• History of more than a decade but inadequate market
achievement
• How customers perceive EV?
• What factors affect attitude formation towards EV?
• Are customer intent to adopt?
3. How was it studied?
3
• Quantitative and Qualitative Methods
• Survey Questionnaire with Non EV users
• 411 samples (KTM, Bhaktapur, Lalitpur, Banke,
Rupandehi)
• Purposive sampling at central locations
• Focus Group Discussion (Non EV Users)
• In depth Interview (EV Users)
• Key Informants Interview (DOTM , Dealers)
• Frequency Distribution, Descriptive Statistics,
Regression, Thematic Analysis of qualitative
data
6. Below 10 years:
90.8%
6
15.6
20.9
27.7 26.5
8.0
1.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Less
than
one
year
One to
three
years
Three
to five
years
Five to
ten
years
Ten to
twenty
years
More
than
twenty
years
Duration of Vehicle Use (Non EV)
80.5 76.9
44.3
22.4
11.7
0.0
20.0
40.0
60.0
80.0
100.0
Office/
Home
Family
Use
Short
Drive
Long
Drive
Others
Purpose of Vehicle Use
Office/Home Use: 80.5%
Family Use: 76.9%
Short Drive: 44.3%
7. Second Vehicle
No: 80.8%
Yes: 19.2%
7
One: 65.82%
Two: 24.05%
19.2
80.8
0.0
20.0
40.0
60.0
80.0
100.0
Yes No
Possess second vehicle
65.82%
24.05%
5.06% 5.06%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
One Two Three More
than
three
If second vehicle, how
many?
8. Want to buy electric vehicle in Future?
Yes: 54%, No: 21.2%, Don’t Know: 24.8%
8
89.10%
63.96%
53.15%
44.14%
24.32%
19.37%
12.61%
9.01%
8.11%
6.31%
Reduces Pollution/Environment…
Low Operation Cost
Low Regular Maintenance Cost
Gasoline not available every time
Easy for all Family members to…
Electric Vehicles are Safety
Good performance of the vehicle
Low Vehicle Price
High Resale Value
Good road condition
If want to buy EV, what are the reasons?
9. Why don’t want to buy EV?
9
78.16%
70.11%
58.62%
45.98%
43.68%
41.38%
40.23%
33.33%
24.14%
22.99%
16.09%
16.09%
No charging stations available
High Price of the vehicle
High battery replacement cost
Less variety/options available
Not suitable for long drive
Maintenance center not available
Not suitable for hills/mountains
Low pickup
Low resale value
Bad road condition
Need a full-fledged car
Low perfomance of the vehicle
10. Don’t want to buy EV
What may encourage to buy?
10
80.46%
70.11%
59.77%
55.17%
47.13%
37.93%
35.63%
29.89%
26.44%
21.84%
19.54%
19.54%
Availability of fast charging stations
Availability of maintenance satations
Multi purpose vehicle (short/long route)
Price cheaper or in-line with gasoline…
Charging facility at home/office
Good resale value
Good pick up
Low maintenance cost
Varieties/options of electric vehicle…
Good road condition
Low operation cost
Low battery replacement cost
12. Regression Results
12
• Quality of EV, Low tariff, Awareness, Low operation
and maintenance cost and availability creates
attitude towards EV. (βQ= .274 ,βT=.201 ,βA=.181,
βO=.147, βAV=.1O1, R2 =.359)
• Price, Promotion and Environmental Concern have
no affect on attitude formation towards EV.
• Adoption Intension towards EV is formed through
attitude (β=.844, R2 =.441)
13. Focus Group Discussion (Non EV
Users)
13
• High price although low custom tax. Low road tax
• Prefer as a second car within city, use as a fancy
vehicle
• Unaware of EV features, distance travelled at full
charge, safety issues, price of spare parts
• Lack of expertise for maintenance
• Very less options available. Need a multipurpose
car
• Issues: Fast charging stations, vehicle pickup,
battery life, high battery replacement cost,
constant voltage supply, no resale value, Lithium
Ion battery disposal
14. In depth Interview (EV Users)
14
• High price compared to gasoline vehicle.
• Use as a city car, have not taken outside
KTM.
• Easy and comfort while driving.
• Low operation and maintenance cost
• Easy charging at home and office
• Not reliable for long route
15. In depth Interview (Government stakeholders)
15
• Government promoting EV, Plan: 20% of the
vehicle sales are EV by 2020 A. D.
• Low custom duty and road tax
• Won’t establish charging station, encourage
dealer
• Working for setting charging standards
• No current battery disposal plan and
modality
16. Key Informants Interview (Dealers)
16
• Pre Introduction and experimental Phase, EV
market is growing
• No aggressive promotion
• Low operation and maintenance cost
• Limited sales, no infrastructure to sell in high
volume
• Immediate switching to EV is low
• Pick up is an issue