Acceptance of Electric Two-Wheelers in India: Results From a Stated Choice Survey

Abstract

Increasing energy insecurity, and a growing contribution of transport sector in total greenhouse gas (GHG) emission have recently pushed India to look for alternative energy sources and ‘de-carbonise’ its transport sector. As a part of policy to introduce more electric vehicles (EVs) in Indian market, government is providing demand incentives (along with supply incentives and infrastructure development). As a lower-middle income economy in India two-wheelers play major role in private vehicle market. This paper focuses on the efficacy of some of the demand incentives and roles of infrastructure and peer effect on acceptance of electric two-wheelers in India. This study utilises a stated preference discrete choice survey to collect responses from Indian residents for analysing the determinants of electric two-wheeler adoption. Respondents had to choose between a petrol vehicle (base) and EV in six different choice scenarios. Results from random parameter model indicate that price, refuelling time, availability of charging and servicing infrastructure, road tax and registration fee, and fuel prices are significant determinants of vehicle choice. Government policies supporting price subsidies, preferential tax treatments, improvements of infrastructure should continue. Differential treatment of petrol and electricity (price difference) can also make electric two-wheelers more attractive.

Keywords: Electric two-wheeler, Technology adoption, Stated preference, Random-parameter logit, Discrete choice models

JEL Classification: O330, Q510, Q580, R400, R410, R490