A study on the perception of consumers of CUTTACK towards electric vehicles

Guided by: Mr. Rajat Kumar Baliarsingh

(Faculty Marketing) IMIT, Cuttack Submitted by-Bikash Barik

Reg.no-2006102029

CONTENT

• INTRODUCTION
• GROWTH OF EV COMPANIES IN INDIA
• THE E.V. COMPANY WHICH ARE AVAILABLE IN CUTTACK CITY
• GOVERNMENT INITIATIVES
• CONSUMER PERCEPTION
• LITERATURE REVIEW
• OBJECTIVE OF THE STUDY
• HYPOTHESIS
• RESEARCH METHODOLOGY
• CONCLUSION

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INTRODUCTION

• India is a country with the third-largest road network in the world. Road travel seemed to be a preferred choice in India with over 60 % of the population used personal or shared vehicles to commute. (Statista,2020) Conventional vehicles are a major cause of global warming and environmental air pollution. All types of vehicles produce dust from brakes, tires, and road wear. The average diesel vehicle has worse effect on air quality than the average gasoline vehicle. But both gasoline and diesel vehicle pollutes more than the electric vehicle. (EEA , 2018)
• An electric vehicle (EV) is a vehicle that uses one or more electric motors or traction motors for propulsion. An electric vehicle may be powered through a collector system by electricity from off-vehicle sources, or may be self-contained with a battery, solar panels, fuel cells or an electric generator to convert fuel to electricity. EVs include, but are not limited to, road and rail vehicles, surface and underwater vessels, electric aircraft and electric spacecraft.
• EVs first came into existence in the mid-19th century, when electricity was among the preferred methods for motor vehicle propulsion, providing a level of comfort and ease of operation that could not be achieved by the gasoline cars of the time. Modern internal combustion engines have been the dominant propulsion method for motor vehicles for almost 100 years, but electric power has remained commonplace in other vehicle types, such as trains and smaller vehicles of all types.

INTRODUCTION

• There are a few different types of electric vehicle (EV). Some run purely on electricity, these are called pure electric vehicles. And some can also be run on petrol or diesel, these are called hybrid electric vehicles.
• In FY 2020, two-wheeler sales in India reached 15.12 million units. India has a huge market for two-wheelers which accounts for 70% of the 200 million total vehicles in the Indian market. This commute of every common man is also responsible for over 20% of the total Carbon dioxide emissions and about 30% of particulate emissions in urban areas. Since this market is set to only grow further in the future, it gives rise to an urgent need to switch to cleaner mode, especially in the urban areas. This is also important as 7 out of 10 most polluted cities in the world are in India. While eco-friendly commute is certainly a need of the hour, which is embraced by many, strong governmental push and affordability also play a vital role in the growing demand for electric vehicles (EVs).

• The NITI Aayog has shifted its focus on Sustainable Development Goals (SDGs) which began on 1 January 2016 and are expected to be achieved by 31 December 2030. NITI Aayog is aiming at 30% electronic vehicle inclusion in India by 2030.

GROWTH OF EV COMPANIES IN INDIA

• E2W companies in India have raised over $600 million in investments over the last two years. The electric two-wheeler (E2W) market in India has witnessed a Compound Annual Growth Rate (CAGR)of 62% from FY2016 till FY2020. The FY2020 sales of electric two-wheelers stood at 152,000 units, which is a marginal increase of 20% over that of the previous year. E2W space is expected to witness significant changes after 2024 when the battery prices are expected to fall below $100/ kWh. ‘This price is seen as the point around which EVs would reach at price parity with the Internal Combustion Engine (ICE) vehicles’. Researches show that this market is likely to grow from 1.52 lakh units in FY2020 to about 34.5 lakh units by FY2025 (CAGR of 87%).

THE E.V. COMPANY WHICH ARE AVAILABLE IN CUTTACK MARKET

E-Vehicles will reduce the usage of fossil fuels . So the E-Vehicles is Emerging as an eco-friendly innovation Here some company are

• 1. Hero electric
• 2. Tata motors
• 3. Ather energy
• 4. Mahindra electric
• 5. Ola electric

GOVERNMENT INITIATIVES

• Governments started using fiscal policies, such as road tax, to discourage the purchase and use of more polluting cars. Green tax is imposed while re-registering the vehicle after 15 years of use to make people discontinue the use of polluting vehicles and encourage them for fuel-efficient and less polluting vehicles. Fuel taxes may act as an incentive for the production of more efficient, less polluting, vehicle and the development of alternative fuels. High fuel taxes or cultural change may provide a powerful incentive for consumers to buy lighter, smaller, fuel-efficient cars, or to not drive. (transport policy)

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• The FAME India Scheme is an incentive scheme for promotion of electric and hybrid vehicles. It aims to promote electric mobility and gives financial incentives for enhancing EV production and the creation of electric transportation infrastructure. In 2015 the Ministry of Heavy Industries and Public Enterprises launched FAME to incentivize the production and promotion of eco-friendly vehicles including EV and hybrid vehicles. The scheme is proposed for establishing charging infrastructure (Jose, 2018)
• The National Electric Mobility Mission Plan (NEMMP) 2020, a National Mission document providing the vision and therefore the roadmap for the faster adoption of EVs and its manufacturing. This plan has been designed to boost national fuel security, to supply affordable and environmentally friendly transportation, and to enable the Indian automotive industry to attain global manufacturing leadership. (Gulati, 2013)

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GOVERNMENT INITIATIVES

CONSUMER PERCEPCTION

• Customer perception refers to how a customer feels about a company. This includes their thoughts, emotions and opinions related to a brand and its products or services. Customer perception can be positive or negative. Customer perception can also impact whether consumers are loyal to your brand or switch to your competitors.
• Adoption of any Innovation by consumers is based on awareness and perception regarding the innovation. Now The Study focused on Perception and adoption of Electric Vehicle in India by comparing the use, features, acceptance , reliability of traditional cars, bike scotty with upcoming Electric vehicles.

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LITERATURE REVIEW

• Satti Swami Reddy, Kola Siva Tharun (2013) have found that co2 emissions are the primary cause of global warming and hybrid vehicles are the answers for the prevention of pollution in the atmosphere.
• Arora, S., Shen, W. and Kapoor, A. (2016) have illustrated in their study that certain important mechanical features can be integrated while designing the battery which in turn can reduce the failure of Li-ion battery and improve some of the additional safety features.
• Burke, A. (2000) in his exploration found out that micro porous carbons are very much used in carbon electrodes and organic electrolytes, which are fabricated for ultra capacitors, an important component in the engine of electric vehicles.
• Chakraborty, A. (2011)has opined that renewable source of energy is very much important and it plays an important role in transmission of this energy to various forms by using different power electronic equipment.
• OLUBAYO MOSES BABATUNDE1, JOSIAH LANGE MUNDA1, ANDYSKANDAR HAMAM. (2020) have found out in their research that because of lack of electrification in the Sub-Saharan Africa, there is a growing demand of these hybrid motors among the household consumers for water pumping, lighting, powering refrigerators for storing vaccines etc.

LITERATURE REVIEW

• Allcott, H. and N. Wozny. (2014)have inferred in their research that fuel price and vehicle markets are dependent on each other. More of consumers have become very sensitive to fuel price and this is a great opportunity for the hybrid or electric vehicle companies.
• TekTjing Lie, Krishnamachar Prasad, Ning Ding. (2017) have illustrated in their research that electric vehicles are very efficient as far as fuel economy, power electrics, energy storage and greenhouse effect is concerned.
• Monica B Ashok(2019)has suggested in her research that an important aspect of protection of environment is sustainability. She also opined that in order to raise an awareness among the people for using more and more environment friendly vehicles, Govt should give more and more subsidy.
• Adepetu, A. Keshav, S.(2017)have found out in their research that the consumers are little bit skeptical about the price of these fuel efficient vehicles and the adoption of such vehicles may be slow.

OBJECTIVE OF THE STUDY

• To evaluate the awareness levels of consumers on E- Vehicles.
• To study the factors that influence consumers to purchase E- Vehicles.

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HYPOTHESIS

• H10 (Null Hypothesis) : There is no association between the awareness levels of consumers and their attitude to purchase EV.

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• H1a (Alternative Hypothesis) : There is an association between the awareness levels of consumers and their attitude to purchase EV.

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RESEARCH METHODOLOGY

• The study is conducted in the city of Cuttack in Odisha. The respondents are either using EV or they are prospective customers. The sample size is taken as 90. A convenient sampling method is used to select the respondents.
• Primary Data collection is done through questionnaire method and interview method.
• Secondary data are collected from various journals, Govt. websites, magazines and articles. Descriptive statistics, charts and graphs are some of the statistical techniques that is used for analyzing the data.

1. EDUCATIONAL QUALIFICATION

• Table 1 shows educational qualification of the respondents on the basis of gender. There is a maximum of 22 male respondents and 11 female respondents who are graduates.
• Chart-1 shows maximum male respondents who have participated in the study are qualified. Maximum female respondents are also qualified. They are graduate and above.

2. DESIGNATION

• Table 2 shows designation of the respondents on the basis of gender. There is a maximum of 21 male respondents and 11 female respondents who are level II executives and level III executives respectively.
• Chart-2 shows maximum male respondents who have participated in the study are in good positions in their job.

3. TYPES OF VEHICLES

• Table 3 shows types of vehicles driven by the respondents. Maximum of 55 respondents drive two wheelers whereas 35 respondents drive 4 wheelers.
• Chart-3 shows the same. There is a scope for the companies to bring in E-two wheelers in Cuttack market as compared to four wheelers.

4. FUEL BY USED VEHICLES

• Table 4 shows fuels used by vehicles driven by the respondents. Maximum of 62 respondents drive vehicles fueled by petrol whereas 11 respondents drive E-vehicles.
• Chart-4 shows the same. 11 E-vehicles include 2 wheelers and 4 wheelers both. However in Cuttack use of four wheeler E-vehicles is very less. In our study we got only two E-four wheelers.

5. FUEL EXPENSES

• Table 5 shows fuel expenses per month by the respondents. Maximum of 50 respondents have an expenses of Rs. 1000 – 3000 per month. Only 13 respondents have expenses of above Rs.5000. It is very well represented in Chart-5 with a bar graph.

6. Awareness of Electric Vehicles

• Table 6 shows awareness level of the respondents about various aspects of E-vehicles on a scale of 3. Agree(3), Neutral (2) and Disagree (1).
• The mean scores are also mentioned in the above table. Though the mean scores in each and every aspect is more than 2, still there is lack of awareness on many of the aspects which is need to be improved.
• Probably that is the reason we found very less number of E-vehicles in our study.
• From chart-6 it can be seen that there are many aspects on which the number of respondents who disagree is quite visible.

6. Awareness of Electric Vehicles

CONCLUSION

• Hybrid-electric vehicles (HEVs) combine the benefits of both IC engines and electric motors and can be configured to obtain different objectives, such as improved fuel economy, increased power, or additional auxiliary power for electronic devices and power tools. The transmission of power using freewheels and chain wheels are very cheap and reliable. One disadvantage is that driving on electric power is not a good option for a long distance travel. Though this combined power train system can become much useful in more stop and go traffic situations. With the use of this power train system, the overall fuel consumption and fuel economy is improved. Such vehicle would run on fuel but would use its electric motor to boost the power when needed. The costs of HEVs are a little more than the conventional cars but they are more efficient and the exhaust emissions are less. In Cuttack the awareness regarding HEV needs to be improved. There are very negligible users of E-four wheelers. There are few numbers of E-two wheeler users. It is found from the study that if the awareness level can be improved then attitude towards purchase of HEV will also be improved.