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Factors influencing purchase of electric vehicles in China

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Mitigation and Adaptation Strategies for Global Change Aims and scope Submit manuscript

Abstract

The development of electric vehicle (EV) market has significant implications on reducing oil consumption and greenhouse gas emissions. It has been considered as an important mitigation strategy by China with strong incentive policies in the past few years. However, with the phasing out of financial subsidy, government and companies should come up with effective solutions to maintain the growing trend of China’s EV market. In this study, the main factors that influence consumers’ EV purchase in China’s overall market and license plate-controlled (LPC) cities are analyzed using logistic regression. T tests are then used to assess consumers’ preferences and differences between LPC cities and cities with no license plate control (NLPC). The results suggest that the license plate control policy is more influential than purchasing subsidy to Chinese consumers, and the negative impact of subsidy phasing out can be alleviated by other policy instruments. To cope with future challenges, the government and automobile companies should pay more attention to the differences between LPC and NLPC cities regarding customers’ EV preferences and influencing factors, and customize policy design towards NLPC cities. More public promotion of EVs are also required to eliminate potential consumers’ misperceptions and increase social acceptance of EVs.

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Funding

National Key Research and Development Project (2018YFC1509006) and the National Natural Science Foundation of China (71774095 and 71673162).

Author information

Authors and Affiliations

  1. Zhang Jiagang Joint Institute for Hydrogen Energy and Lithium-Ion Battery Technology, Tsinghua University, Beijing, 100084, China

    Danhua Ouyang & Xunmin Ou

  2. Institute of Energy, Environment and Economy, Tsinghua University, Beijing, 100084, China

    Danhua Ouyang, Xunmin Ou & Qian Zhang

  3. China Automotive Energy Research Center, Tsinghua University, Beijing, 100084, China

    Danhua Ouyang, Xunmin Ou & Qian Zhang

  4. School of Public Administration and Policy, Renmin University of China, 59 Zhongguancun Ave., Beijing, 100872, China

    Changgui Dong

Authors
  1. Danhua Ouyang
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  2. Xunmin Ou
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  3. Qian Zhang
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  4. Changgui Dong
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Corresponding author

Correspondence to Changgui Dong.

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Appendix

Appendix

1.1 Survey on electric vehicle owners and potential consumers

  1. (1)

    Common questions for both potential consumers and EV owners

    1. 1.

      Gender:

      1. A.

        Male

      2. B.

        Female

    2. 2.

      Age:

      1. A.

        Under 20 years old

      2. B.

        Between 20 and 30 years old

      3. C.

        Between 30 and 40 years old

      4. D.

        Between 40 and 50 years old

      5. E.

        Between 50 and 60 years old

      6. F.

        60 years old or older

    3. 3.

      Highest education level obtained:

      1. A.

        Junior high school and below

      2. B.

        High school

      3. C.

        Technical secondary school

      4. D.

        College

      5. E.

        Bachelor

      6. F.

        Master

      7. G.

        PhD

    4. 4.

      Annual household income:

      1. A.

        ≤100,000 Yuan

      2. B.

        100,000-200,000 Yuan

      3. C.

        200,000-300,000 Yuan

      4. D.

        ≥300,000 Yuan

    5. 5.

      What is the main usage of your vehicle?

      1. A.

        Commuting

      2. B.

        Family reasons

      3. C.

        Entertainment

      4. D.

        Travel

      5. E.

        Business

    6. 6.

      Which of the most important factor that influence your vehicle purchase:

      1. A.

        Purchase cost

      2. B.

        Fuel economy

      3. C.

        Operating cost (refueling fee / charging fee, daily maintenance costs, etc.)

      4. D.

        Vehicle performance (such as power performance, driving range, etc.)

      5. E.

        Incentive policies (such as license plate control, subsidies, etc.)

      6. F.

        Word of mouth (brand reputation, evaluation of consumers who have purchased cars, etc.)

      7. G.

        Safety

      8. H.

        Appearance

      9. I.

        Other

    7. 7.

      Please rate the impact level of the following purchase factors (1=lowest, 5=highest):

      1. A.

        Purchase cost

      2. B.

        Fuel economy (kWh/100km)

      3. C.

        Battery performance (such as battery life, actual driving range, etc.)

      4. D.

        Power performance (such as 100 km acceleration time, etc.)

      5. E.

        Charging convenience

      6. F.

        Daily maintenance costs

      7. G.

        Safety

      8. H.

        Second-hand selling price

  2. (2)

    Questions for potential consumers only

    1. 1.

      If you buy an EV, which technology do you prefer?

      1. A.

        BEV (such as BAIC EV200, BYD e5, Zhidou, etc.)

      2. B.

        PHEV (such as Roewe rx5, BYD Tang, etc.)

      3. C.

        Not sure

    2. 2.

      If you buy an EV, which model do you prefer?

      1. A.

        Low speed EV

      2. B.

        Sedan Vehicle (such as BAIC EV200, BYD Qin, Tesla Model 3, etc.)

      3. C.

        SUV (such as BYD Tang, Roewe RX5, Tesla Model X, etc.)

      4. D.

        Sports car (such as Tesla Model S, NIO EP9, BMW i8, etc.)

      5. E.

        Not Sure

    3. 3.

      If you buy an EV, which brand do you prefer?

      1. A.

        Domestic independent brand (such as BAIC New Energy, SAIC Roewe, BYD, etc.)

      2. B.

        Joint venture brand (such as Tengshi, Dongfeng Nissan, etc.)

      3. C.

        Import brand (such as Tesla, BMW, etc.)

      4. D.

        Not sure

    4. 4.

      What are the main disadvantages of EV?

      1. A.

        Charging inconvenience

      2. B.

        Limited driving range

      3. C.

        Immature technology

      4. D.

        Limited models in the market

      5. E.

        Low recognition

      6. F.

        Safety reason(battery)

      7. G.

        High purchase price

      8. H.

        Driving range drops after air conditioning is turned on

      9. I.

        Quick start, quick stop, low comfort

  3. (3)

    Questions for EV owners only

    1. 1.

      How often does your EV cannot satisfied your travel demand?

      1. A.

        Fully satisfied my needs

      2. B.

        1-2 times a month

      3. C.

        3-4 times a month

      4. D.

        More than 4 times a month

    2. 2.

      Please rate the impact of the following policies on your EV purchase (1=lowest, 5=highest)

      1. A.

        Purchase subsidies

      2. B.

        License plate control policy

      3. C.

        Free purchase tax

      4. D.

        Right of way (such as unlimited lines, bus lanes, etc.)

      5. E.

        Use of preferential policies (such as electricity price concessions, parking discounts, free tolls, etc.)

      6. F.

        Own charging pile protection policy

    3. 3.

      Will you still buy an EV if there is no EV purchase subsidy?

      1. A.

        Yes

      2. B.

        No

      3. C.

        Won’t buy a car now

    4. 4.

      Will you still buy an EV if there is no license plate control policy (Free EV license)?

      1. A.

        Yes

      2. B.

        No

      3. C.

        Won’t buy a car now

    5. 5.

      Will you still buy an EV if there is no EV tax exemption policy?

      1. A.

        Yes

      2. B.

        No

      3. C.

        Won’t buy a car now

    6. 6.

      Will you still buy an EV if there is no private charging pile guarantee policy?

      1. A.

        Yes

      2. B.

        No

      3. C.

        Won’t buy a car now

    7. 7.

      Will you still buy an EV if there is no ROW (right of way) policy?

      1. A.

        Yes

      2. B.

        No

      3. C.

        Won’t buy a car now

    8. 8.

      Do you have your own charging pile?

      1. A.

        Yes

      2. B.

        No

    9. 9.

      Have you encountered the following problems in the process of building your own charging pile?

      1. A.

        The installation goes on well

      2. B.

        Residential property management company

      3. C.

        Electricity company

      4. D.

        The community's power supply condition

      5. E.

        Other problems

    10. 10.

      The maintenance cost for your EV is:

      1. A.

        <300 Yuan/time

      2. B.

        300-500 Yuan/time

      3. C.

        >800 Yuan/time

      4. D.

        500-800 Yuan/time

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Ouyang, D., Ou, X., Zhang, Q. et al. Factors influencing purchase of electric vehicles in China. Mitig Adapt Strateg Glob Change 25, 413–440 (2020). https://doi.org/10.1007/s11027-019-09895-0

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  • DOI: https://doi.org/10.1007/s11027-019-09895-0

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