Factors Influencing the Purchase Willingness towards Electric Vehicles in China

Abstract: As China is facing environmental problems, they are producing positive policies in order to stimulate the sales of electric vehicles. In addition, China is one of the largest electric vehicle markets in the world and the electric vehicles market has a promising growth potential. In light of this, this thesis aims to investigate the factors affecting Chinese consumers’ willingness to purchase electric vehicles. This thesis draws on rational choice theory to analyze the six determining factors including driving range of electric vehicles, charging infrastructure, purchase cost, government financial incentives, individual environmental awareness and perceived social influence, as electric vehicles are not cheap goods and make consumers take full consideration before buying. This study adopts a quantitative approach and conducts a survey to investigate this topic. Based on 249 online questionnaires from Chinese consumers, this study employs SPSS to conduct a regression analysis to test the six determining factors. The empirical results indicate that charging infrastructure, government financial incentives, individual environmental awareness and perceived social influence have significant impact on Chinese consumers’ willingness to purchase electric vehicles, while our results do not show that the driving range of electric vehicles and purchase cost matters in influencing Chinese consumers’ willingness to purchase electric vehicles. Meanwhile, this study contributes to the research on the consumption of electric vehicles by providing an empirical context of China, considering rational choice theory and understanding perceived social influence. Also, this study provides relevant suggestions to electric vehicle manufacturers and the Chinese government about how to encourage the Chinese to adopt electric vehicles in China. Keywords: Electric Vehicles, Willingness to purchase, SPSS, Rational choice theory, Chin