Socio-Economic and Demographic Factors Affecting Adoption of Electric Vehicles in India
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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 (GEV) is represented through the proxy of total income of ten prominent Indian EV manufacturing companies for eight years from 2016 to 2023. This is analyzed 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, data for which was extracted from governmental and company websites. The study employed statistical methods, such as correlation and regression analysis, to examine the associations between the dependent and independent variables. The results depict notable positive correlations with GDP, per capita income, age of company, and population density, and negative correlations with the price 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, might help achieve accelerated and sustainable growth for EVs in India. This study highlights the unique impact of demographic elements like population density on the EV market in India.
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