Estimating the Choices of Electric Vehicles: A Random Utility Model

Purpose: This study aims to understand the consumption behaviour of Malaysians on electric cars by utilizing the discrete choice modelling approach. This paper also describes the relationship between the socio-demographic factors of the consumers and their buying decision by utilising the random utility theory. Design/methodology/approach: Consumers in two major cities in Malaysia were sampled and given a set of choices determined from review of past studies. The choices are made up of three important attributes of electric cars, which are the price of the vehicle, the driving range of the vehicle and the charging time of the vehicle. Findings: Results show that brand, design and safety features of the vehicles have significant, influential power over the purchase behaviour of electric cars. This study also reveals that Malaysians have little knowledge on electric cars. The willingness to purchase electric cars among the respondents is also very low. Research Limitations: This study was conducted on consumers living in cities. Thus, future research may focus on consumers living in remote areas of the country. Originality/value: There is a dearth of literature that applied the utility theory in understanding consumers choices of electric vehicles. It is against this background that this study fills the literature gap through the attempt to examine the choice of electric cars, and the preferred attributes of electric cars among Malaysians using stated preference data.