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Major Project Report

On
Consumer perception and purchase intention of electric car in India

Submitted to
Amity University Dubai
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In partial fulfilment of the requirements for the award of the degree of

Bachelor of Business Administration
By
Swapnil Kumar Singh A3906419495

Under the guidance of

Dr Mukund Jakhiya

AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY UTTAR PRADESH
NOIDA (U..P..)
December 2021

DECLARATION FORM
I.., Swapnil Kumar Singh student of BBA (General).., Enrollment No.. (A3906419495) batch
2019-23.., Amity School of Business.., Amity University.., Uttar Pradesh.., Noida hereby
declare that I have gone through project guidelines including policy on health and safety..,
policy on plagiarism etc..

Place: Noida
Date:

Swapnil Kumar Singh(A3906419495)

Amity School of Business
Amity University.., Uttar Pradesh.., Noida

CERTIFICATE
On the basis of declaration submitted by Swapnil Kumar Singh student of BBA (General).., I
hereby certify that the project titled “Consumer perception and purchase intention of electric
car in India” which is submitted to Department of BBA.., Amity School of Business.., Amity
University Uttar Pradesh.., in partial fulfilment of the requirement for the award of the degree
of Bachelor of Business Administration.., is an original contribution with existing knowledge
and faithful record of work carried out by him under my guidance and supervision..
To the best of my knowledge this work has not been submitted in part or full for any Degree
or Diploma to this University or elsewhere..

Place: Noida
Date:

Signature of Guide
(Dr.. Mukund Jakhiya)
Amity School of Business
Amity University Uttar Pradesh
 ACKNOWLEDGEMENT

“It has been a great honour and privileged to work on such a new and challenging field of
research.. I am very grateful to Dr.. Mukund Jakhiya (faculty guide).., for giving his valuable
time and constructive guidance in performing this research driven project helping us
throughout the duration of the project with his profound expertise.. It would not have been
possible to perform this project without his kind encouragement and valuable guidance..”

SwapnilKumar Singh (A3906419495)

Amity School of business

Amity University.., Uttar Pradesh.., Noida
 ABSTRACT

Pollution of the environment is currently a global concern.. Toxic emission

from internal combustion engines is one of the primary air pollutants.. In order
to mitigate the effects of fossil fuel emission and address environmental
concerns (ECs).., electric vehicles (EVs) are being promoted aggressively all
over the world.. Various governments are encouraging people to switch to EVs
by incentivizing the transition.. Previous studies indicate that the high cost of
the electric car.., non-availability of charging infrastructure.., time and range
anxiety act as impediments to consumer adoption.. The Government of India
has given a call for ‘only Electric Vehicles’ on Road by 2030..

Introduction
With the current shortage of fossil fuels and rising prices.., another source of
energy is needed to power the car.. The automotive industry sees electric
vehicles as a solution for Indian industry and the environment.. Although the
government has implemented an electric vehicle policy.., the current market
share of electric vehicles is relatively small.. Through this project.., the potential
opportunities for electric vehicles in India will be explored and consumer
attitudes will be analyzed.. India has the third largest road network in the
world.. Road travel in India appears to be the first choice.., with over 60% of the
population using private or shared vehicles.. (Statistics.., 2020)..
Traditional cars are the main cause of global warming and air pollution..
Brakes.., tires and road wear of all types of vehicles generate dust.. The impact
of ordinary diesel vehicles on air quality is worse than that of ordinary gasoline
vehicles.., and the pollution of gasoline and diesel vehicles is greater than that
of electric vehicles.. (European Economic Area.., 2018)
The government has started using fiscal policies such as road taxes to prevent
the purchase and use of more polluting cars.. The eco-tax is levied when the
vehicle is re-registered after 15 years of use to prevent people from using
polluting vehicles and switching to more fuel efficient and less polluting
vehicles.. Fuel taxes can encourage the development of more efficient and less
polluting vehicles and alternative fuels.. High fuel taxes or cultural changes can
provide a powerful incentive for consumers to buy or drive light.., small and
fuel efficient cars.. (Transport policy)..

Contemporary environmental issues are driving the production and sale of

electric vehicles.. In 2018.., this Indian manufacturer's dream of an electric car
turned into the best alternative to gasoline vehicles (traditional diesel - gasoline
internal combustion engines).. For example.., Nissan is developing 20 new
models of electric vehicles.. Indian national companies such as Tata Motors..,
Mahindra & Mahindra.., TVS Motors and Bajaj Auto are trying to integrate the
advantages of high growth electric vehicles into their strategic competitive
advantages.. .. ..Marlet.. This emerging market has experienced various strategic
alliances (Fiat and Tata Motors.., Ford and Renault and M&M.., Kawasaki and
Bajaj Auto.., TVS and Suzuki.., Jaguar Land Rover from Tata Motors..,
Ssangyong from M&M and Bajaj Auto and KTM).. ..
The FAME India project is an incentive plan for the promotion of electric and
hybrid vehicles.. It aims to improve electric transport and provide financial
incentives to increase production of electric vehicles and build electric transport
infrastructure.. In 2015.., the Ministry of Heavy Industry and Public Enterprises
launched FAME to encourage the production and promotion of environmentally
friendly vehicles.., including electric vehicles and hybrid vehicles.. The project
plans to build charging infrastructure (José.., 2018)
 Objective of the Study

The goal of this research is to learn more about Indian consumers' perceptions about electric
vehicles and their intentions to buy them..

"RESEARCH METHODOLOGY"

The method employed is descriptive research.. A questionnaire is used to acquire primary

data from a sample population of 515 people.. On the internet.., primary data and some
secondary data are used..

"LITERATURE REVIEW"
1: Consumers Understanding and Buying Electric Vehicles: Sundar Bhalla..,
Inas Salma Ali.., Afroz Nasreen.., the choice of cars depends on environmental
issues.., cost.., convenience.., reliability.., technology.., social acceptability and
the availability of infrastructure.. These arguments have been tested against
conventional cars and electric cars.. They believe that these factors have a direct
impact on a person's vehicle choices.. They found that electric car makers and
governments needed to invest more in the acceptance of cars in society by
building more infrastructure and focusing more on technology that would
increase reliability..
Analysis shows that people are very aware of the benefits of the environment..
Investing in the automotive industry is the responsibility of government and
manufacturers.. (Sundarbara.., 2018)

2: Capacity of Indian market for electric vehicles.., infrastructure of charging

stations and challenges of Indian market: Instead of forging ahead.., India
should invest in small-scale re-exploration measures to solve the problems of
local recharging.. The change should encourage families to recharge their
batteries.. Proper planning of location.., population.., traffic density and safety
should be taken into account before implementing large-scale charging
infrastructure.. The integration of activities in the energy and transport sectors is
important.. Development objectives through various innovative policies and
programs.., for example.., tax credits.., purchase subsidies.., reduced tolls.., free
parking and restricted highway access to provide financial incentives for electric
motorists to help to develop the market.. .. (Dash PK.., 2013)
3: Electric vehicles in India: market analysis and access.., policies and
consumption issues: Preham K.. Gujarati.., Varsha a.. Shaw.., Makrand M.. The
situation in India is different as the current market share of electric and plug-in
hybrid vehicles is around 0..1%.. Almost all vehicles are now considering using
fossil fuels for transportation.. By emitting greenhouse gases.., they pollute the
environment and cause global warming.. The gap between national oil
production and consumption is widening.. India imports about 70% of its oil
needs each year.. Therefore.., research on the factors and challenges that
influence them is near.. A sustainable and clean choice.. (Preetam K.. Gujarati..,
2018)

4: International Committee for Clean Transport: Lingzi Jin.., Peter Slovak.., The
initial growth of the electric vehicle market is still underway.., but some
obstacles are hindering their widespread adoption.. These barriers include the
additional cost of new technology.., the relative disadvantages of the technology
for specific run and load times.., and the customer's perception of the
availability and capacity of the technology.. The last aspect.., commonly
referred to as “consumer awareness”.., is important.. (Gold Lingse.., 2017)
 ELECTRIC VEHICLE TYPE

Electric motors power electric vehicles.., but rechargeable batteries or other

portable energy storage devices power electric vehicles.. These vehicles are fuel
efficient.., emit less greenhouse gases (GHGs) and are quieter.. Different
categories of EV:

HEV: Hybrid Electric Vehicle (HEV) is a hybrid electric vehicle.., or HEV..,

with a gasoline engine and an electric motor for driving a car.. All the energy in
the battery is generated by regenerative braking.., which helps the gasoline
engine accelerate the energy lost during braking.. In vehicles with conventional
internal combustion engines.., this braking power is usually lost as heat to the
brake pads and rotors..

PHEV: The plug-in hybrid electric vehicle (PHEV) consists of a motor and an
electric motor to drive the car.. Like regular hybrid cars.., batteries can be
charged with regenerative braking.. They differ from ordinary hybrid vehicles
by having larger batteries and the possibility of plugging them into the network
to recharge them.. A typical hybrid vehicle can travel 1 to 2 miles before
starting the gasoline engine (at a lower gear).., 10 to 40 miles before the PHEV
gasoline engine is assisted.. Once fully autonomous
 CONSUMER PERCEPTION TOWARDS EV IN INDIA

To understand the consumer perception towards ev in India a questionnaire was used and it
was a structured questionnaire.. This questionnaire was circulated online and some responces
were obtained from telephonic interview.. The sample size is 51 as these were the people who
responded to the questions..
There were certain reasons for selecting an ev in India.. The answer to those reasons are as
follows:

It is critical to understand the factors that influence EV selection in order to determine

consumer perception.. Respondents cite lower carbon emissions.., less reliance on fossil
fuels.., and low operating costs as important factors..

There were certain drawbacks observed from the respondents while interviewing them those
are as follows:

-
Respondents cite recharging time.., charging station availability.., and charging difficulty as
major drawbacks or limitations to considering EVs in the current scenario..

FACTORS INFLUENCING PURCHASE INTENTION OF EV

Factors such as the environment.., value for money.., range of drives and infrastructure are
having a favourable impact on the purchase of Consumers' decision..

One of the most significant impediments to the successful implementation of the

government's electric vehicle schemes in India is a lack of adequate charging infrastructure
(CI)..

The price range.., range confidence.., and charging infrastructure have all been identified as
hurdles to EV adoption.. Indian consumers are extremely price sensitive.., with an EV costing
nearly three times as much as an equivalent ICE..

Recharging an electric vehicle takes a lot more time.. Inadequate charging infrastructure and
slow-charging batteries keep people from buying them.. According to an official study from
India's Ministry of Power's Bureau of Energy Efficiency.., there are only 750+ charging
stations around the country..

The driving range of electric vehicles is yet to be expanded and upgraded due to their low
range.., and it is unable to meet the requirements for long-distance users..
 MEASURES TO OVERVOME CHALLENGES

The government is looking into the battery swapping option concept to overcome the
impediments to EV adoption.. The exchanging approach has proven partially successful in
Israel and China.. The challenges include battery size and power.. These can differ depending
on the fabricator and model (e..g...., Maruti Alto and Honda City).. This model's challenging
circumstance necessitates a comparable design to fit the same difficult-to-reach battery..
Another option could be battery leasing.., which would lower the cost of ownership..
However.., a significant but unsolved difficulty is the ease with which charging points may
be found in numerous locations around a metropolis..
 TATA MOTORS ATTITUDE TOWARDS EV IN INDIA

Tata Motors is guiding its underlying company toward sustainability.., aiming to provide 10
battery-powered vehicles to the Indian market by 2025.., following a global deadline for a
fume-free Jaguar lineup.. As a company.., we will spend ahead of time to establish charging
infrastructure across the country.. Tata Motors will be at the forefront of this shift in the
Indian market.. In addition.., to secure supplies.., the Tata group is aggressively considering
partnerships in cell and battery manufacturing in India and Europe.. The Nexon is at the
forefront of automakers' green drive to home.., where electric vehicle penetration is predicted
to skyrocket in the coming years.. In the automotive market.., the Tata group will be the
torchbearer for green mobility.., creating a virtuous cycle of growth and returns for
shareholders.. Tata Motors has a 71 percent market share in the passenger electric vehicle
segment..
The Jaguar Land Rover (JLR) brand is owned by Tata Motors.., ensuring India's competitive
presence in the global luxury car market.., which is currently dominated by German
automakers.. JLR has began Tata Motors' journey toward sustainability.., with these brands
aiming for a portfolio of zero tailpipe emissions by 2036.. By 2025.., Jaguar will be entirely
electric.., and by 2030.., three-fifths of JLR volume will be pure BEV automobiles..
Consumer preferences for personal mobility are driving significant demand at home..,
according to the business..
 UAE PERSPECTIVE

The UAE has taken a number of significant steps to show that it is serious about speeding up
the transition to electric vehicles.. We discover in this context that the country has converted
20% of its government fleet to electric vehicles and expects to have 42..,000 electric vehicles
on the road by 2030.. Despite the fact that sales of NGVs and hybrid cars are increasing..,
both are still seen as a temporary solution during the energy transition; nonetheless.., electric
vehicles represent the future of Green Mobility from an environmental aspect.. EVs may now
travel up to 600 kilometres and beyond.., and technology is progressing at a breakneck pace..
However.., their costs must be reduced in order for them to be affordable to the average
person.. The quantity of charging stations must be increased.. Currently.., the UAE has about
240 electric vehicle charging stations spread across the country.. In fact.., the United Arab
Emirates boasts the most electric vehicle charging facilities in the world.. The Dubai
Electricity and Water Authority's "Green Charger" initiative.., which aims By reducing
carbon emissions from the transportation industry and supporting the Dubai Green Mobility
Strategy 2030.., the emirate contributes to its efforts to develop innovative and ecologically
friendly solutions by providing charging stations for electric vehicles in various sections of
the emirate.. As a result.., the popularity of electric vehicles has soared in the UAE..
Government.., bank.., and vehicle dealer incentives have also resulted in an increase in EV
imports into the UAE.., as well as increasing environmental awareness among individuals..
For example.., until the first quarter of 2021.., there were 2473 electric vehicles registered in
Dubai.., while 6016 hybrid vehicles were registered.., bringing the total number of green
vehicles registered in Dubai to 8..,489 vehicles.. The number of electric government vehicles
in Dubai has reached 258.., while hybrid government vehicles have reached 2..,653.. Electric
vehicles are better for the environment since they release very little carbon.., especially when
the electricity is supplied from renewable energy sources like solar or wind.. Additionally..,
they are quieter than diesel vehicles.. From the consumer's standpoint.., it saves more than
half on fuel costs and necessitates less expensive and frequent maintenance..
 CONCLUSION

The transition to EVs in India is necessary.., if not imminent.., in the near future.. Unplanned
urbanisation and severe pollution have wreaked havoc on a number of cities.. They are
severely degraded.., with vehicular emissions being the principal cause.. India's commitment
to decreasing pollution and carbon emissions is expanding as well.. By 2030.., the country
intends to switch to electric vehicles.. The government wants automakers to move to electric
vehicle production.., which will save $60 billion in oil costs.., reduce pollution by 37%.., and
reduce dependency on foreign fuel imports.., while also acting as a hedge against crude price
and currency volatility..
The Indian government has mandated that all cars be electrified by 2030.. The Society of
Indian Automobile Manufacturers (SIAM.., 2017) published a white paper estimating that by
2030.., electric vehicles would account for 40% of new vehicle sales and 100% by 2047..
This momentous date falls on the 100th anniversary of the country's independence..
Due to the depletion of fossil resources and the continual rise in fuel prices in India.., an
energy shift in automobiles is required.. By promoting electric vehicles and giving purchase
discounts.., the government has taken initiatives to lower pollution levels.. The government
has relaxed FDI rules in order to promote output.. Several new brands are on the rise..EVs are
being launched in India.. To develop the future.., the government and manufacturers should
work together for infrastructure..
The current state of the world's environment and are willing to change their preferences from
Vehicles have gone from being conventional to being environmentally friendly.. When it
comes to purchasing an electric vehicle.., price is a major consideration..
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