Determinant of Adoption Intention Towards Electric Vehicles in Malaysia

Chai, Chang Le (2023) Determinant of Adoption Intention Towards Electric Vehicles in Malaysia. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

Text 06 Chai Chang Le (MBA).pdf Restricted to Registered users only Download (2MB)

Abstract

In the 21st century, the urgency to address climate change, propelled by soaring carbon emissions from the transportation sector, has propelled electric vehicles (EVs) into the spotlight as a potential solution. Malaysia, despite enacting supportive governmental policies like the National Automotive Policy 2020, faces a significant hurdle in low EV adoption rates. Currently, EVs constitute a mere 5% of total vehicle registrations, with plug-in hybrid and hybrid EVs dominating the market share. The persisting challenges predominantly revolve around inadequate EV infrastructure, leading to range anxiety among consumers. This anxiety, stemming from concerns about limited charging stations and difficulties in long-distance travel, stands as a major barrier hindering the widespread acceptance and uptake of EVs in the country. Overall, this study seeks to bridge gaps in understanding Malaysian drivers' perspectives on EVs and explores socio-technical constraints, shedding light on crucial aspects for enhancing EV adoption. This research aims to uncover the determinants influencing EV adoption intention, encompassing factors like perceived economic benefit, anxiety, perceived behavioural control, environmental concern, and subjective norm. Additionally, it investigates the mediating role of attitude and the moderating effect of price sensitivity on the relationship between subjective norm and adoption intention. The research on Malaysian consumer attitudes towards Electric Vehicles (EVs) employs three main theories: Ajzen's Theory of Planned Behaviour (TPB), the Technology Acceptance Model (TAM), and the Social Cognitive Theory (SCT). These theories focus on attitudes, norms, perceived usefulness, ease of use, and the social environment's impact on consumer intentions regarding EV adoption. By integrating these frameworks, the study aims unveil the complex factors influencing Malaysians' decisions on embracing EVs, providing crucial insights for sustainable transportation initiatives. The research delves into the determinants of adoption intention towards Electric Vehicles (EVs) in Malaysia through a comprehensive methodology involving primary data collection and sophisticated analysis using SPSS and Partial Least Squares-Structural Equation Modelling (PLSSEM). With a sample size of 392 respondents, the study initially conducted a pilot test with 100 participants to ensure data reliability. Through meticulous data analysis, encompassing preliminary tests, descriptive and correlation analyses, the research identified crucial factors influencing EV adoption intentions. Notably, 7 out of 8 hypotheses were supported, highlighting the significance of variables like perceived economic benefit, environmental concern, and subjective norms in driving EV adoption intentions, despite an unexpected positive relationship with anxiety. The study contributes to filling gaps in understanding why Malaysians exhibit adoption intentions towards EVs despite the technology's novelty, emphasizing the importance of socio-technical factors and environmental concerns. Regarding the result generated from this research, the managerial implications suggest strategies for government and businesses, emphasizing the necessity for enhanced infrastructure, incentives, and public awareness campaigns to promote EV adoption. However, this study acknowledges limitations, advocating for future research to explore actual adoption behaviours, test additional moderating factors beyond price sensitivity, and expand the study to global contexts amidst escalating environmental concerns.