Consumer intention to accept electric two-wheelers in India: a valence theory approach to unveil the role of identity and utility

Two-wheelers in India account for more than 70% of the total motorised vehicles, with approximately half of the Indian households owning at least one two-wheeler as compared to 7.5% of the households owning a four-wheeler. An impetus towards electrification of mobility is crucial for India, given the enormous volume of oil imports and the subsequent negative impacts it has on the trade balance and the environment. However, the adoption rates of electric two-wheelers remain low, and hence, for fruitful penetration of electric two-wheelers in developing economies such as India, this study analyses the factors affecting the adoption behaviour of electric two-wheelers. This study uses data collected from 1375 potential electric two-wheeler buyers of Bengaluru, India, to study the influence of socio-demographic variables and certain latent factors such as environmental enthusiasm, technological enthusiasm, monetary benefits, environmental benefits, social image, lack of infrastructural readiness, perceived fee, and perceived risks on consumers’ intention to adopt electric two-wheelers. The results reveal environmental enthusiasm, technological enthusiasm, monetary benefits, environmental benefits, and social image to have a significant positive impact on electric two-wheeler adoption intention. Perceived fees and perceived risks are found to hinder the adoption of electric two-wheelers, while the lack of infrastructural facilities does not have a direct impact on the intention to adopt electric two-wheelers among potential buyers. Moreover, socio-demographic variables are also found to be significant determinants of electric vehicle adoption behaviour. This study provides some important implications for policy and decision-makers that can help in the widespread adoption of electric two-wheelers.