“CONSUMER’S AWARENESS AND PREFERENCE

ABOUT ELECTRIC VEHICLES IN SURAT”

Anurag Pandey
Gauri Choudhary
Lovemeet Ladha
Muaaz Lokhandwala
BBA-20 SEC A
School of Business, Auro University.
E-mail: muaaz.lokhandwala.bba20@aurouniversity.edu.in

Ms. Yamee Sapre

Module Leader
Faculty of School of Business, Auro University.
E-mail: yamee.sapre@aurouniversity.edu.in

ABSTRACT-With the current depletion of fossil fuels and high prices, another source of energy
is required to operate vehicles. The automotive sector sees electric vehicles as a solution for
industry and the environment in India. However, the current level of electric vehicle market
penetration is relatively low despite the government's implementation of electric vehicle
policies. Through this document, the potential accessibility of electric vehicles in India will be
investigated and consumer perception analyzed towards it.
Keywords: Electric vehicles, Consumer perception, Choice of vehicle, Environment,
Conventional vehicle, Government policies

INTRODUCTION

The century-old auto industry is preparing for change. The rise in the price of fossil fuels and the
impact of their emissions on the environment have made it necessary to change individual
transportation habits. The internal combustion engine sector is gradually moving towards
electric vehicles (EVs).

WHAT IS ELECTRIC VEHICLES

electric motors power electric vehicles and the rechargeable battery or other portable energy
storage device maintains the power supply. These vehicles are energy efficient, generate less
greenhouse gases (GHG) and reduce noise. The different categories of electric vehicles are as
follows:

HEV: Hybrid Electric Vehicles (HEVs) run on fuel and electricity and have a motor and an
electric motor. The electricity generated by the brake system charges the battery.
PHEV: Plug-in Hybrid Electric Vehicles (PHEVs) are like HEVs, except they have a small
motor and larger batteries. The batteries are charged through the braking system or by
connecting to an external electric charging station.
BEV: You have no motor and you use electric motors to power them with batteries as energy
storage. It relies on external power outlets to charge the battery. These vehicles are also known
as plug-in vehicles, EVs, or battery electric vehicles (BEVs).

ELECTRIC VEHICLES AND SUSTAINABILITY

The transport sector contributes around a quarter of greenhouse gas emissions. Cars are the
leading source of greenhouse gas emissions worldwide, with China emitting 25.9 percent, the
United States 13.87 percent, followed by India with 7.45 percent.
The 8th Clean Energy Ministerial Conference in 2016 adopted the theme “The EV30 ” in its
campaign. The member countries reaffirmed their commitment to the introduction of EVs. The
goal was to achieve a total market share of 30 percent for electric vehicles and a market share of
10 percent for the respective categories of passenger cars, light commercial vehicles, buses and
trucks by 2030 (IEA, 2016).
India's commitment to containing pollution and reducing its carbon footprint is also growing.
The country is preparing to switch to electric vehicles by 2030. The government wants
automakers to switch to electric vehicle production, which will reduce oil bills by $ 60 billion,
reduce emissions by 37 percent and it will reduce dependence on fuel imports as a shield
against vulnerability to crude oil prices and currency fluctuations.

FUTURE OF ELECTRIC VEHICLES

India's electric vehicle market was valued at $ 5 billion in 2020 and is projected to reach $ 47
billion by 2026, which has a CAGR of more than 44% over the forecast period (2021-2026 ).
India's electric vehicle market has been affected by the COVID19 pandemic outbreak due to
supply chain disruptions and downtime of production units due to continued lockdowns and
travel restrictions across the county. However, the electric vehicle (EV) market is still in its
infancy in India. It is expected to grow much faster during the forecast period due to various
government initiatives and actions. 4,444 e-commerce companies (eg Amazon) initiate initiatives
to use eMobility for last mile deliveries to reduce their carbon footprint. India is experimenting
with electric mobility for public transport and the country has rolled out electric intercity buses
in some of the major cities. In addition, state governments also play an active role in
implementing measures to promote the use of electric vehicles.

LITERATURE REVIEW

technological and financial features of an EV have a considerable influence on its utility,

including its purchase and operating costs, driving range, charging time, vehicle Potential Need
for Electric Vehicles, Charging Station Infrastructure and its Challenges for the Indian Market:
by Praveen Kumar and Kalyan Dash, Rather than making radical reforms, India could engage in
small-scale reinforcements to address load concerns locally. Charging at home should be
promoted. Before installing the large scale charging infrastructure, proper planning of site,
culture, traffic density, and safety should be addressed. It is critical to integrate operations in the
energy and transportation sector. Proper planning on a large scale is very important. Targets for
development Drivers of electric cars, for contrast, are provided a financial consumer incentive,
such as tax credits, purchase subsidies, cheaper tolls, free parking, and access to special highway
lanes, which will enable the market increase. P. K. Dash (2013)
Electric Vehicles: Which Technology for an Urban Distribution Centre?: by Philippe Lebeau,
Cedric De Cauwer, Joeri Van Mierlo, Cathy Macharis, Shipping has a significant influence on
urban mobility. The researcher looked at the possibility of integrating electric cars into urban
logistical operations. A fleet equipped with different technologies has the potential to reduce last-
mile expenses. The researchers developed a fleet size and mix shortest path challenge for EVs
with time windows. The authors' main contribution was to take into account the fluctuation of
the EV range. But in the future, EV can be proven as the most efficient vehicles.EVs are
generally the most competitive technology in the category of small vans. In the sector of large
vans, diesel has been the most cost-effective alternative, since electric cars would need to travel a
greater distance to be cost-competitive. Hybrid vehicles are favoured in the truck market because
their running and fixed costs are lower than that of diesel trucks. (Philippe Lebeau, 2015)
Consumer preferences for electric vehicles: by Fanchao Liao, Eric Molin & Bert van Wee, The
widespread use of EVs may help to relieve issues such as pollution, global warming, and oil
reliance. EV penetration is, however, comparably limited, despite the government's undertaking
aggressive promotional strategy. They offered a complete description of studies on consumer
preferences for EVs in order to inform policymakers and guide the development. They explore
the economic and psychological strategies electric car companies have gained.The e
performance, and market brand variety. The density of charging stations has a positive influence
on the utility and development of electric vehicles. The influence of incentive policies, such as
tax cuts, is incredibly powerful. Fanchao Liao (2017)

Electric Vehicles: A Synthesis of the Current Literature with a Focus on Economic and
Environmental Viability: Marcello Contestabile, Dr Gregory Offer, Dr Robin North According
to one study, the longer-term penetration of EVs will be hugely dependent on developments in
battery technology, which will reduce costs and enhance energy content, as well as the
availability of either an appropriate charging infrastructure. (2012) (Marcello Contestabile)
Electric Vehicles in India: Market Analysis with Consumer Perspective, Policies and Issues:
Pritam K. Gujarathi, Varsha A. Shah, Makarand M. Lokhande, The Indian scenario differs ever
since the present market share of EV/PHEV is less than 0.1 percent. Nowadays, virtually all cars
consider using fossil fuels for mobility. These damage the atmosphere by emitting greenhouse
gases, which cause global warming. The disparity between domestic petroleum output and
consumption is growing. India's total is around 70% of its oil requirements each year. As a result,
there is an urgent need to explore the variables and challenges related to sustainable and cleaner
alternatives. 2018 (Pritam K. Gujarathi)
Study on Electric Vehicles in India Opportunities and Challenges: by Mohamed M, G Tamil
Arasan, and G Sivakumar, The replacement of internal combustion engines with electric engines
would significantly cut pollution while also benefiting customers. Many countries have adopted
this technology, which is helping to improve the environment. The researcher discovered the
potential and problems associated with the integration of EVs in India. Government Projects,
Batteries, Industries, and the Environment have all been examined. These difficulties, such as the
cost of EVs, the performance of EVs in India, and the demand for EVs, were taken into account.
The introduction of EVs in India is largely intended to reduce emissions and reduce oil costs.The
government will make the most of the opportunities offered & discover adequate interventions to
the difficulties. Mohamed M (Mohamed M, 2018)
Electric Vehicles in India: Market Analysis with Consumer Perspective, Policies and Issues:
Pritam K. Gujarathi, Varsha A. Shah, Makarand M. Lokhande, The Indian scenario differs since
the present customer base of EV/PHEV is about 0.1 percent. Nowadays, nearly all cars consider
fossil fuel-based mobility. These damage the atmosphere by emitting greenhouse gases, which
cause global warming. The difference between domestic petroleum output and demand is
increasing. India imports around 70% of it's own oil needs each year. As a result, there is an
urgent need to study causes and difficulties for sustainable and greener solutions. (Pritam K.
Gujarathi, 2018)
Perception and Awareness Level of Potential Customers towards Electric Cars: Masurali.A,
Surya P, In terms of greenhouse gas emissions, China accounted for around 18% of the total in
the transportation sector. The Electric Vehicle (EV) is one of

the most promising viable alternative solutions to the crisis. Several automakers are launching
EVs and diversifying their product lines. Developing EVs may help reduce fuel dependency and
pollution, which is good for both customers and the country. People's knowledge of EVs is
heavily influenced with their degree of education. Aside from producers, the government should
work hard to raise awareness and promote favourable attitudes among potential buyers.
Masurali.A (Masurali.A, 2018)
A Study of Consumer Perception and Purchase Intention of Electric Vehicles: Pretty Bhalla,
Inass Salamah Ali, Afroze Nazneen, The selection of an automobile is influenced by
environmental concerns, cost, comfort, trust, technology, social acceptance, and infrastructure
availability. These arguments have been tested for both conventional and electric vehicles. They
believe that these elements have a direct impact on an individual's car selection. They discovered
that EV manufacturers and the government must invest more on societal acceptability of the car
by building more infrastructure and focusing more on technology to build trust. The
responsibility for investing in car production falls on the shoulders of the government and
manufacturers. (Bhalla, Pretty, 2018)
Electric Vehicles for India: Overview and Challenges: by Mr. A. Rakesh Kumar, Dr.
Sanjeevikumar Padmanaban, Global pollution is on the rise, and every effort is being made to
reduce CO2 emissions and rescue your planet. The introduction of electric vehicles is one such
attempt. The transportation industry is one of the major emitters of CO2, thus it is critical to
minimise it. The government has ambitious ambitions to introduce EVs to the Indian market
while maintaining pace with the supervolcano eruption of EVs. The National Electric Mobility
Mission Plan 2020 includes a comprehensive study on EVs. India faces a significant hurdle in
transitioning from internal combustion engines to electric vehicles. This necessitates extensive
planning as well as R&D.To address anxiety, charging infrastructures must be appropriately
built. It is critical to meet consumer needs by electrifying all government buses and providing

METHODOLOGY

NEED AND IMPORTANCE OF THE STUDY

● To know what Surat consumers think of adopting electric vehicles over gasoline vehicles.
● To know about and the current scenario of electric vehicles.
● To know the problem consumer's facing towards electric vehicles so that it can be used as a
solution for the future by the manufacturer or government.
● To know the awareness level of customers toward electric vehicles.

OBJECTIVES

● To study the awareness level of customers regarding electric vehicles.

● To study why customers prefer or don't prefer electric vehicles.
● To determine factors influencing consumer buying behaviour.

● To study current expectations of consumers with respect to electric vehicles, this will lead to
its potential in future.

RESEARCH METHODOLOGY
Research design: descriptive research.

Population:The population consists of all the individuals who use cars or for that matter any type
of vehicles in Surat City.

Sampling frame:The individuals of selected areas of the west zone of Surat who own a car or any
other type of vehicle.

Sampling units:Sampling units are individuals who use cars.

Sample size:190 respondents have taken for sample size.

Sampling method:Non probability convenient sampling .

DATA ANALYSIS AND INTERPRETATION

The above chart shows that 94.2% are aware of electric vehicles and a smaller percentage of
respondents only don't know about electric vehicles

The above chart shows that 89.5% don't own any electric vehicles and a very less percentage of
respondents own or have booked electric vehicles.
The above chart shows that 60% of respondents believe that electric vehicles have an advantage
over owning a gasoline powered car and 13.2% don't agree on that. And the left ratio 26.8% are
neutral about that.

The above chart shows that 46.8% are sure that electric vehicles have sustainably efficient for the
conversation of environment. 34.7% think that electric vehicles are on somewhat on
improvement and the remaining are 13.2% are unsure or think that it is not at all efficient.
The above chart shows that 51.1% are in favor of government incentivizing electric vehicles
sales. The other 29.9% are neutral about it and the 16.8% think that it will not affect the sales and
the remaining are against it.

The above bar chart shows 3 questions to find out respondents opinion of the following : Evs can
save a lot of money for car buyers , where 83 respondents agreed , 50 respondents are neutral, 30
people strongly agree and 25 people disagree . The second question is EVs are too expensive for
most buyers , 82 respondents agree with it , 52 respondents are neutral , 33 respondents strongly
agree and 18 people disagree . The third question is electric cars can help reduce global
warming , 81 respondents agree with it , 76 respondents strongly agree , 19 respondents are
neutral and 11 people disagree.
The above chart shows that limited options for recharging car could be the main reason that can
discourage for buying electric vehicles which is like 51.3% . And there could be many other
reasons such as: limited driving time ( 45.5 % ) , higher price( 42.8% ),lack of consumer choices(
21.4 % ) and some don't trust the technology(7 % ) and some are other specified reasons which
are around 3.2% of the total respondents respectively.
The above chats shows 3 electric vehicles in indian market : Hyundai konic , Tata nexon and MG
ZS .

1) Hyundai konic

Out of 191 responses 65 respondents have maybe heard the EV 60 respondents are somewhat
familiar with the EV 43 respondents have never heard of this EV and 23 have in depth
knowledge about the EV

2) Tata nexon

Out of 191 responses 45 respondents have maybe heard the EV 91 respondents are somewhat
familiar with the EV 20 respondents have never heard of this EV and 25 have in depth
knowledge about the EV

3) MG ZS

Out of 191 responses 53 respondents have maybe heard the EV 51 respondents are somewhat
familiar with the EV 49 respondents have never heard of this EV and 28 have in depth
knowledge about the EV

The above chart shows the percentage of people who believe in sustainability, 53.7% people
somewhat believe in sustainability , 39.4% people are highly conscious about sustainability and
6.9% people don't believe in sustainability.
The above chart showes the sources from which the respondents have rated 1 to 5 where 5 being
the most viewed and 1 being the leas viewd

1) Internet

Out of 191 responses 52 respondents have selected band 1 , 18have selected band 2 , 30 have
selected band 3 , 41 have selected band 4 and 50 have selected band 5

2) Word of mouth

Out of 191 responses 18 respondents have selected band 1 , 59 have selected band 2 , 45 have
selected band 3 , 40 have selected band 4 and 29 have selected band 5

3) Online website

Out of 191 responses 40 respondents have selected band 1 , 33 have selected band 2 , 52 have
selected band 3 , 37 have selected band 4 and 29 have selected band 5

4) Blog

Out of 191 responses 52 respondents have selected band 1 , 35 have selected band 2 , 50 have
selected band 3 , 35 have selected band 4 and 19 have selected band 5

5) Magazine

Out of 191 responses 62 respondents have selected band 1 , 38 have selected band 2 , 40 have
selected band 3 , 26 have selected band 4 and 15 have selected band 5

6) Advertisement
Out of 173 responses 52 respondents have selected band 1 , 18have selected band 2 , 30 have
selected band 3 , 41 have selected band 4 and 50 have selected band 5

7) Customer review

Out of 173 responses 52 respondents have selected band 1 , 18have selected band 2 , 30 have
selected band 3 , 41 have selected band 4 and 50 have selected band 5

8) Newspaper

Out of 173 responses 48 respondents have selected band 1 , 32 have selected band 2 , 43 have
selected band 3 , 30 have selected band 4 and 30 have selected band 5

9) Television

Out of 173 responses 40 respondents have selected band 1 , 30 have selected band 2 , 50 have
selected band 3 , 34 have selected band 4 and 17 have selected band 5

The above chart shows how do people think buying an electric vehicle will change their social
acceptability , 51.3% people think electric vehicles will make a positive impact on their image
29.1% people think electric vehicles will make no change in their image and 19.6% people think
electric vehicles won't have any impact on their image.
From the above chart 42.2% of respondents will take into consideration the opinion of family
and friends for the car choice. 21.9% respondents will take the advice of professionals for the car
choice.19.3% respondents will rely on their own knowledge and 16.6% respondents will
consider peer suggestions for the car choice.

From the above chart 38.8% of respondents are not sure that their next car will be electric
vehicles. 13.3% of respondents will buy an electric vehicle in the next 10 years. 23.4% of
respondents will buy an electric vehicle in the next 5 year. 19.1% of the respondents want to buy
electric vehicles as soon as possible and 5.4 of the respondents have no intention to buy electric
vehicles as their next car.
From the above chart 63.1% respondents are male and 36.9% are female.

The above chart shows that 49.5% of respondents are under 25 years. 23.4% of respondents are
from the age group of 26 to 30 years. 14.4% of respondents are from the age group of 31 to 40
years. 8% of respondents are from the age group of 41 to 50 years and 4.7% of the respondents
are over 50 years.
The above chart shows the education level of the respondents 51.6% have done the Bachelor's
Degree. 24.7% have done High School. 16.7% have done the Master/ PG Diploma. 3.2 % have
done PhD and 3.8% have not completed high school.

The above chart shows that 38.2% respondents have a yearly income of Rs 5,00,000. 27.8%
respondents have a yearly income of Rs 5,00,000-10,00,000. 20.8% respondents have a yearly
income of Rs 10,00,000-20,00,000 and 13.2% respondents have a yearly income of more than
RS 20,00,000.
SCOPE OF FURTHER RESEARCH

This research looked at both primary and secondary data on electric vehicles in surat. Despite the
fact that the study discovered a potential market for electric cars in Surat , there is still need for
more research with a larger number of samples and additional parameters.

In further researches we can include that how much percentage of people could find ev’s useful.
How the electric vehicles would involve in peoples day to day life. In how much time or in how
many hours would different batteries will be charged. How different cities will have different
no.s of charging stations. Which companies electric vehicles would have a great sale and which
company will not be successful in EV types of vehicles .

CONCLUSION

The objective was to study the awareness level of customers regarding electric vehicles. It can be
concluded that the majority of the respondents are aware of electric vehicles. From the research
we understand that 65% of respondents are aware about electric vehicles. Maybe briefly or in
detail but they know about electric vehicles. Whereas, the rest 35% of the respondents are not
aware of the term electric vehicle at all.
The second objective was to study why customers prefer electric vehicles and why they don‟t
and the conclusion derived is that we get to know that respondents think that electric vehicles
create less noise pollution, they are environment friendly, and are cost effective as well. But they
won‟t prefer electric vehicles due to factors like high cost, lack of charging stations, high cost of
maintaining it, and lack of service centres.
The third objective was to study current expectation of consumers with respect to Electric
Vehicles, this will lead to its potential in future and the conclusion derived is that most of the
respondents weren‟t sure if they‟d buy an electric vehicle, 40%of the respondents think electric
vehicle has the potential of capturing the gasoline market but it will take more than 20 years.
With the depletion of fossil fuels and constant hike in fuel prices, there is a need for energy
transition in vehicles in India. The Government has taken initiative to fight pollution levels by
promoting EVs and giving subsidies on purchase. To boost its production, the Govt has eased the
FDI norms. Various emerging brands are launching EVs in India. The Government and
manufacturers should join their hands to build the infrastructure and create a positive
environment for EVs.
The respondents are aware of global climate conditions and are ready to change their preference
from conventional to eco-friendly vehicles. Cost is an important factor while considering the
purchase of EV.
Respondents are willing to consider EVs as their future purchase option, if proper infrastructure
is available. Initial cost of purchase, less number of charging stations and the time required to
recharge the battery is creating limitations in boosting consumer confidence.

APPENDIX
REFERENCES

1. Praveen Kumar and K Dash.(2013). “Potential Need for Electric Vehicles, Charging Station
Infrastructure and its h Challenges for the Indian Market”, Advance in Electronic and Electric
Engineering, 471- 476 .

2.Philippe Lebeau.et.Al. (2015). “Conventional, Hybrid, or Electric Vehicles; Which Technology

for an Urban Distribution Centre?”, The Scientific World Journal, 11.

3.Fanchao Liao, Eric Molin. et.Al. (2017). “Consumer preferences for electric vehicles: a
literature review”, Transport review, 275.

4.Marcello Contestabile, Dr Gregory Offer.et.Al. (2012). “Electric Vehicles: A Synthesis of the

Current Literature with a Focus on Economic and Environmental Viability”.

5.Pritam K. Gujarathi, Varsha A. Shah.et.Al. (2018). “Electric Vehicles in India: Market

Analysis with Consumer Perspective, Policies and Issues”, Journal of Green Engineering.

6.Mohamed M, G Tamil Arasan.et.Al. (2018). “Study on Electric Vehicles in India Opportunities

and Challenges”, International Journal of Scientific Research in Environmental Science and
Toxicology , 5.

7.Pritam K. Gujarathi, Varsha A.Shah.et.Al. (2018). “Electric Vehicles in India: Market Analysis
with Consumer Perspective, Policies and Issues”, Journal of Green Engineering.

8.Masurali.A and Surya.P. (2018). “Perception and Awareness Level of Potential Customers
towards Electric Cars”, International Journal for Research in Applied Science & Engineering
Technology.

9.Pretty Bhalla, Inass Salamah Ali.et.Al. (2018). “A Study of Consumer Perception and Purchase
Intention of Electric Vehicles”, European Journal of Scientific Research, 362-368.

10.Mr. A. Rakesh Kumar and Dr.Sanjeevikumar Padmanaban. (2019). “Electric Vehicles for
India: Overview and Challenges”, IEEE India, 5.

11.https://ejmcm.com/pdf_7216_a56db3d7f55a5b1ac66729c3a1ce910e.html

12.https://www.twi-global.com/technical-knowledge/faqs/what-is-an-ev
13.https://www.bmu.edu.in/social/future-of-electric-vehicles-in-india/

14.https://www.forbesindia.com/blog/technology/are-electric-vehicles-truly-sustainable/