Socio-Economic and Demographic Factors Affecting Adoption of Electric Vehicles in India
Swaraj Patil
Swaraj Patil, Department of Economics, Eklavya School Ahmedabad, Ahmedabad (Gujarat), India.
Manuscript received on 24 November 2023 | Revised Manuscript received on 13 January 2024 | Manuscript Accepted on 15 May 2024 | Manuscript published on 30 May 2024 | PP: 1-10 | Volume-4 Issue-1, May 2024 | Retrieval Number: 100.1/ijef.A256104010524 | DOI: 10.54105/ijef.A2561.04010524
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The purpose of this study is to analyze the diverse socio-economic and demographic determinants that impact the adoption and growth of electric vehicles (EVs) in India. Quantitative research was conducted utilizing data from the Prowess IQ database. Growth of Electric Vehicles (EVs) is represented through the proxy of total income of ten prominent Indian EV manufacturing companies for eight years from 2016 to 2023. This analysis is conducted against nine independent variables, including GDP, Per Capita Income, Age of Company, Population Density, Average Petrol/Diesel Price, Price of Electricity Per Unit, Average Household Electricity Consumption, and vehicle electricity consumption. The data for these variables were extracted from governmental and company websites. The study employed statistical methods, including correlation and regression analysis, to examine the relationships between the dependent and independent variables. The results show notable positive correlations with GDP, per capita income, company age, and population density, as well as negative correlations with the prices of electricity and diesel. Regression analysis further substantiated six variables (population density, petrol prices, per capita income, GDP, diesel prices, and average household electricity consumption) as statistically significant contributors to GEV in India. These findings point towards the need to leverage the positive drivers and mitigate the effects of negative correlates. Policies offering financial support tailored to demographic and economic contexts may help achieve accelerated and sustainable growth for electric vehicles (EVs) in India. This study highlights the unique impact of demographic factors, such as population density, on the electric vehicle (EV) market in India.
Keywords: Electric Vehicles, Growth Factors, Socio-economic Variables, Indian EV Market, Population Density.
Scope of the Article: Capital Markets in Emerging Economies