Time to adopt a segmented approach to accelerate electric car adoption in emerging economies? Evidences from Indian metro cities

The sluggish pace of electric car adoption in emerging economies presents a formidable challenge in tackling the emission concerns arising from traditional combustion engine cars. Despite the implementation of numerous government initiatives, the uninspiring rate of electric car adoption demands alternative strategies in Indian context. Considering the diverse socio-economic characteristics of the Indian population and the resulting variations in perception, the study aims to segment non-Electric Car (non-EC) users of Indian metro cities and identify the perceived barriers to the adoption of electric cars. Unlike previous studies, the present work employs segmentation based on quality expectations, resulting in the identification of two distinct segments of non-EC users: captive users (loyal to combustion engine cars) and potential adopters (potential interest in electric vehicles). Additionally, the study also investigates the perception of EC users to derive intervention areas based on their experience of using electric cars. Barriers to electric car (EC) adoption for each segment are identified using a revised Importance-Performance Analysis (revised IPA) giving due consideration to factor structure and management schemes. The findings indicate the need for a segmented approach with short term and long term focus areas to accelerate electric car adoption in Indian cities. While the count of barriers identified by the two non-EC segments are different, there are many common barriers identified by these segments influencing their decision to adopt electric cars. The potential adopters identified range of travel, battery cost, charging infrastructure, and availability of parts, service and incentives as the major barriers. The captive users are concerned about the purchase cost and charging time in addition to those mentioned as barriers by the potential adopters. The comparative insights derived based on the findings are expected to aid policymakers and manufacturers to accelerate the electric car adoption in emerging economies.