Why electric vehicles failed

Abstract

China, Europe, Japan, and the US started with large public programs more than five years ago to make electric passenger cars popular. While China’s government aimed to create a strong Chinese car industry by leapfrogging to electric vehicles, Europe, the US, and Japan tried to compete with China, wanted to decrease the dependency on oil imports and to reduce \(\mathrm{{CO}}_{2}\) emissions from transportation. Today, we realize that all programs failed and electric vehicles are going to flop. One reason for that is insufficient information to customers. The article analyzes the acceptance of electric vehicles via an experimental design with comprehensive test drives. For the experiment, eleven plug-in electric vehicles were tested by 232 customers. The analysis is based on the Technology Acceptance Model and a literature based extension. A partial least squares approach with reflective and formative indicators was chosen as method. The main result of this study is that acceptance patterns change through increasing experience with the new product. For that, possibilities to test an innovation are absolutely essential. Electric vehicles can become part of the evoked set of new car buyers, if the customer is provided by sufficient individual information. Additionally, it is recommended to support the marketing of plug-in hybrids or range extended electric cars due to psychological concerns about the limited range of pure battery electric vehicles.