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Market Promotion of Electric Vehicle
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?
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
4
86.9
12.9
.2
0.0
20.0
40.0
60.0
80.0
100.0
Male Female Others
Gender
7.5
37.7
34.3
18.7
1.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
19-25
years
26-35
years
36-45
years
45-60
years
Above
60 years
Age Group
Male: 86.9%
Female: 12.9%
79.6% were
below 45 years
Bachelors: 43.80%
Masters: 41.61%
5
Private Service: 41.4%
Self Employed: 32.6%
0.97 1.46 2.43
9.73
43.80 41.61
-
10.00
20.00
30.00
40.00
50.00
Education
41.4
9.0
32.6
5.1 2.2 1.5
8.3
0.0
10.0
20.0
30.0
40.0
50.0
Occupation
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%
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?
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?
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
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
Perception towards Electric Vehicle
11
Mean Std. Deviation
Environment Concern 4.4704 .58609
Operation Maintenance Cost 3.6959 .69840
Awareness 3.8224 .66081
Price 3.7190 .73963
Quality of Vehicle 2.9943 .73821
Promotion 2.7486 .76971
Availability 2.0397 .78557
Tariff 3.5328 .82463
Attitude 3.3812 .71008
Adoption Intension 3.4193 .90207
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)
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
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
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
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
Conclusion and Recommendations
17
• Focus on charging station
• Highlight product features in promotion
• Manage battery disposal mechanism
Avant Garde Solution (P) Ltd
Sankhamul, Kathmandu, Nepal
Contact : 977 1 5242340
info@avantgarde.com.np
www.avantgarde.com.np

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Market promotion of Electric Vehicle in Nepal

  • 1. Market Promotion of Electric Vehicle
  • 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
  • 5. Bachelors: 43.80% Masters: 41.61% 5 Private Service: 41.4% Self Employed: 32.6% 0.97 1.46 2.43 9.73 43.80 41.61 - 10.00 20.00 30.00 40.00 50.00 Education 41.4 9.0 32.6 5.1 2.2 1.5 8.3 0.0 10.0 20.0 30.0 40.0 50.0 Occupation
  • 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
  • 11. Perception towards Electric Vehicle 11 Mean Std. Deviation Environment Concern 4.4704 .58609 Operation Maintenance Cost 3.6959 .69840 Awareness 3.8224 .66081 Price 3.7190 .73963 Quality of Vehicle 2.9943 .73821 Promotion 2.7486 .76971 Availability 2.0397 .78557 Tariff 3.5328 .82463 Attitude 3.3812 .71008 Adoption Intension 3.4193 .90207
  • 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
  • 17. Conclusion and Recommendations 17 • Focus on charging station • Highlight product features in promotion • Manage battery disposal mechanism
  • 18. Avant Garde Solution (P) Ltd Sankhamul, Kathmandu, Nepal Contact : 977 1 5242340 info@avantgarde.com.np www.avantgarde.com.np