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Evaluating China’s Electric Vehicle Adoption with PESTLE: Stakeholder Perspectives on Sustainability and Adoption Barriers

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  • Daniyal Irfan

    (School of Management, Guangzhou University, Guangzhou 510006, China)

  • Xuan Tang

    (School of Management, Guangzhou University, Guangzhou 510006, China)

Abstract

The electric vehicle (EV) business model integrates advanced battery technology, dynamic power train architectures, and intelligent energy management systems with ecosystem strategies and digital services. It incorporates environmental sustainability through lifecycle analysis and renewable energy integration. China, with 9.49 million EV sales in 2023 (33% market share), faces infrastructure gaps constraining further growth. China is strategically mitigating CO 2 emissions while fostering economic expansion, notwithstanding constraints such as suboptimal battery technology advancements, elevated production expenditure, and enduring ecological impacts. This Political, Economic, Social, Technological, Legal, Environmental (PESTLE) assessment, operationalized through a survey of 800 stakeholders and Statistical Package for the Social Sciences IBM SPSS SPSS (Version 28) quantitative analysis (factor loading = 0.73 for Technology; eigenvalue = 4.12), identifies infrastructure gaps as the dominant barrier (72% of stakeholders). Political factors (β = 0.82) emerged as the strongest adoption predictor, outweighing economic subsidies in significance. The adoption of EVs in China presents a significant prospect for reducing CO 2 emissions and advancing technology. However, economic barriers, market dynamics, inadequate infrastructure, regulatory uncertainty, and social acceptance issues are addressed in the assessment. The study recommends prioritizing infrastructure investment (e.g., 500 K fast-charging stations by 2027) and policy stability to overcome adoption barriers. This study provides three key advances: (1) quantification of PESTLE factor weights via factor analysis, revealing technological (infrastructure) and political factors as dominant; (2) identification of infrastructure gaps, not subsidies, as the primary adoption barrier; and (3) demonstration of infrastructure’s persistence post-subsidy cuts. These insights redefine EV adoption priorities in China.

Suggested Citation

  • Daniyal Irfan & Xuan Tang, 2025. "Evaluating China’s Electric Vehicle Adoption with PESTLE: Stakeholder Perspectives on Sustainability and Adoption Barriers," Sustainability, MDPI, vol. 17(14), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6258-:d:1697192
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