Determinants of electric vehicle adoption: insights from Indian states

Abstract

Purpose

Electric Vehicles (EVs), owing to their low carbon emissions, have gained immense importance in achieving net-zero emissions by 2070. They have also appeared as viable substitute to conventional vehicles. Aligning with global initiatives, India has created a favourable ecosystem and has implemented several policies since 2011 to achieve its target. Consequently, the market share of EVs has surged, both globally and in India, over the past decade. Taking this into account, this study aims to identify the factors that influence EVs in a developing economy using the context of India.

Design/methodology/approach

This study identified important determinants of EV adoption from global literature and employed a multiple linear regression model (MLRM) using the ordinary least squares (OLS) technique. Secondary data were utilised to identify determinants in the Indian context, sourced from the Ministry, NITI Aayog, AQI, the Lok Sabha Question, and the Economic Survey of India.

Findings

This study found that the number of charging stations and local pollution levels significantly influence EV adoption in India. The insignificance of the other variables may be due to the emerging state of the Indian EV market.

Originality/value

This study adds to the growing body of literature on EV adoption in developing economies by analysing the factors that impact its adoption using regional data. In addition, this study provides a unique perspective on a developing economy and advocates a comprehensive policy for EV adoption that reflects long-term sustainability.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0479.

Citation

Nigam, N., Samanta, D. and Senapati, S. (2025), "Determinants of electric vehicle adoption: insights from Indian states", International Journal of Social Economics, Vol. 52 No. 1, pp. 91-107. https://doi.org/10.1108/IJSE-06-2023-0479