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South Asian
Factors influencing the purchase Journal of
Marketing
intention toward electric vehicles;
a nonuser perspective
Dinesh Samarasinghe and Gayithri Niluka Kuruppu 149
Department of Industrial Management, University of Moratuwa,
Moratuwa, Sri Lanka, and Received 6 April 2023
Revised 1 September 2023
Tharanga Dissanayake 6 October 2023
21 November 2023
Department of Management of Technology, University of Moratuwa, 3 January 2024
Moratuwa, Sri Lanka 29 February 2024
Accepted 13 March 2024

Abstract
Purpose – The demand for electric vehicles (EVs) has significantly increased in recent years, though some
countries like Sri Lanka have reported the opposite direction compared to the global trend. Hence, this study
focused on identifying factors affecting EV purchase intention and barriers to the widespread adoption of EVs
in a developing country context. Also, this study presents an overview of the theoretical perspectives utilized
for understanding consumer intentions and adoption behavior toward alternative fuel vehicles (AFVs).
Design/methodology/approach – The questionnaire method was employed, and 394 individuals who lived in
Colombo City, Sri Lanka, with valid driving licenses and a hybrid or conventional vehicle were the study sample.
The partial least squares structural equation modeling (PLS-SEM) was used to test the research hypothesis.
Findings – The findings confirmed that the three relationships between the unified theory of acceptance and
use of technology (UTAUT) variables and EV purchase intention are significant, and there is no significant
moderator effect from the consumer’s perceived risk.
Originality/value – These results offer useful information for governments and EV companies to better
understand consumer behavior toward purchasing EVs.
Keywords Electric vehicles, Technology acceptance models (TAM), UTAUT, EVs, Perceived risk,
EV acceptance
Paper type Research paper

1. Introduction
The diffusion of electric vehicles can mitigate most environmental problems, including air
pollution, oil dependency, greenhouse gas emissions and global warming. Therefore, most
countries have taken action to provide policy incentives with the target of encouraging
consumers to purchase electric vehicles (EVs) (Zimm, 2021). However, there are barriers to the
widespread adoption of EVs. For example, experts believe that people shift gradually without
much effort if EVs are equal to or better performing than traditional cars and when EVs
become cost-effective. Researchers have identified that EVs must be like the traditional car in
terms of size, driving experience, driving range and price to achieve a mass switch from fossil
fuel cars to EVs (Agassi, 2009).
The demand for EVs has surged in recent years, transforming the landscape of road
transport. In 2021, global electric car sales hit 6.6 m, with a total of 16.5 m electric cars on the

© Dinesh Samarasinghe, Gayithri Niluka Kuruppu and Tharanga Dissanayake. Published in South
Asian Journal of Marketing. Published by Emerald Publishing Limited. This article is published under South Asian Journal of Marketing
the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and Vol. 5 No. 2, 2024
pp. 149-165
create derivative works of this article (for both commercial and non-commercial purposes), subject to full Emerald Publishing Limited
attribution to the original publication and authors. The full terms of this licence may be seen at http:// e-ISSN: 2738-2486
p-ISSN: 2719-2377
creativecommons.org/licences/by/4.0/legalcode DOI 10.1108/SAJM-04-2023-0026
SAJM road (IEA, 2022). Notably, leading countries like China, Germany, France, Sweden,
5,2 Denmark, the UK and the Netherlands have declared plans to ban fossil-fueled vehicles by
2040 (Petroff, 2017). Nevertheless, electric vehicles have yet to become a ubiquitous global
phenomenon.
Sales in developing and emerging countries like Sri Lanka have been slow (IEA, 2022).
According to Figure 1, newly registered electric cars accounted for less than 2% of newly
registered motor cars from 2017 to 2020, increasing to 7.81% in 2021 (Ministry of Transport
150 and Highways, 2023). These figures indicate a continued preference for petrol and diesel cars
over EVs among Sri Lankan consumers. However, there has been a significant change in this
trend in 2022, with a notable increase in the proportion of EVs among newly registered cars.
Nonetheless, the reasons behind this sudden change remain unidentified, highlighting a
research gap in understanding the factors influencing this shift.
Ensuring the successful adoption of new technology like pure EVs hinges on
understanding customer perceptions and adoption barriers. Tesla’s marketing strategy
emphasizes innovation, technology, and sustainability, presenting their EVs as cutting-edge
machines promoting environmental friendliness. Elon Musk’s public image and Tesla’s adept
use of social media play central roles in creating an aspirational identity appealing to those
valuing innovation and eco-friendly initiatives. This approach resonates with consumer
aspirations, fostering a sense of involvement in a cleaner, smarter future and ultimately,
boosting sales. However, it’s crucial to contextualize these strategies within Sri Lanka’s socio-
cultural and economic landscape.
This study employs the UTAUT model within its framework, integrating environmental
concerns as a key independent variable and perceived risk as a moderating variable. Unlike
prior studies focused primarily on psychological determinants (Jain et al., 2022), this model
expands its scope to include various factors influencing EV purchase intention. By
incorporating environmental concerns and perceived risk into the conceptual model, the
study addresses a theoretical gap by elucidating how these factors interact with EV
acceptance and adoption. Notably, while existing studies have focused on established EV
markets (Jain et al., 2022), this research uniquely explores an emerging market context,
specifically Sri Lanka. This distinction underscores the novelty of investigating EV adoption
factors in smaller, developing markets, offering insights that may diverge significantly from
those in more mature markets.

Figure 1.
Electric car
registration
This paper has four main objectives: firstly, to examine current consumer perceptions of EVs South Asian
in the local context; secondly, to elucidate the relationships between factors affecting Journal of
purchase intention for EVs; thirdly, to determine the moderating effect of perceived risk on Marketing
the relationship between these factors and EV purchase intention and finally, to propose a
policy framework to promote EVs in Sri Lanka, focusing solely on passenger vehicles.
The remainder of this article is organized as follows: Section 2 outlines the literature, Section 3
presents the conceptual framework and Section 4 details the research methodology.
The results are discussed in Section 5, while Section 6 covers conclusions, implications, 151
limitations and suggestions for future research.

2. Literature review, research hypotheses and conceptual framework

This section presents the literature, hypotheses and conceptual framework of the present
studies.

2.1 Measuring the acceptance of EVs

The unified theory of acceptance and use of technology (UTAUT) model delineates factors
influencing technology adoption. Anchored in performance expectancy, effort expectancy,
social influence and facilitating conditions, UTAUT probes individuals’ tendencies toward
new technologies. While prior studies focused on psychological traits in mature EV markets
(Jain et al., 2022), this study employs UTAUT to explore additional factors. UTAUT’s
versatility demonstrated across various contexts like mobile devices and healthcare systems
(Raj et al., 2023), facilitates a comprehensive understanding and predictive modeling of
technology adoption patterns.

2.2 Hypotheses
The following hypotheses were used in relation to the literature:
Empirical studies generally confirm a positive relationship between performance
expectancy and EV purchase intention. For example, Emsenhuber and Zielke (2012) found
variables that perceived usefulness and relative advantage have a significant positive
relationship. Similarly, it has been found that drivers confident in the performance of electric
vehicles show a higher level of purchase intention and recommend EVs to others (Jabeen,
2016). Hence, the first hypothesis of the study is:
H1. Performance expectancy has a significant impact on the buying intention of EVs.
Effort expectancy means the degree of ease associated with using an EV. The construction of
effort expectancy is made up of three combined variables from different models, and those are
namely perceived ease of use, complexity and ease of use (Venkatesh et al., 2003). As per
Emsenhuber and Zielke (2012), perceived ease of use positively affects EV purchase intention.
Similarly, Mashayekhi (2012) revealed that when more people perceive the use of a battery-
electric vehicle as difficult, the less they adopt that battery-electric vehicle. Hence, the second
hypothesis of the study is:
H2. Effort expectancy has a significant impact on the buying intention of EVs.
Social influence refers to the importance consumers attach to others believing they should use
EVs. It comprises subjective norms, social factors and image (Wu et al., 2007). Family
members’ influence, friends’ influence and the beliefs of important people are commonly used
indicators for social influence in EV acceptance studies (Riga, 2015). Similarly, Karunanayake
and Wanninayake’s (2015) study in Sri Lanka revealed a positive relationship between social
SAJM influence and hybrid vehicle purchase intention. Thus, the third hypothesis posits this
5,2 relationship.
H3. Social influence has a significant impact on the buying intention of EVs.
Facilitating conditions means the consumers’ perceptions of the resources and support
available to use EVs, such as infrastructure, availability of necessary resources and policies
(Jayawardena et al., 2022). Hung et al. (2003) found that facilitating conditions affect the
152 acceptance of a new system. Similarly, a study conducted by Karunanayake (2017) in Sri
Lanka found that the facilitating conditions construct has a positive relationship with the
purchase intention of alternative fuel vehicles. Hence, the fourth hypothesis of the study is:
H4. Facilitating conditions have a significant impact on the buying intention of EVs.
Environmental concern includes understanding, efforts to find solutions and a willingness to
contribute to environmental causes (Dunlap and Jones, 2003). Mashayekhi’s (2012) study
found a significant link between environmental concern and purchase intention (Ziegler,
2012). However, Lee (2009) and Karunanayake and Wanninayake (2015) discovered that
environmental concerns may not affect young respondents’ purchasing behavior
significantly. Hence, the study’s fifth hypothesis explores this further.
H5. Environmental concerns have a significant impact on the buying intention of EVs.
Perceived risk encompasses various dimensions, including social, financial, functional,
privacy, physical, time and psychological risks (Sunitha et al., 2012). Mashayekhi (2012)
highlighted functional risk, linked to usability challenges, as a critical barrier to widespread
electric vehicle adoption in urban areas. Karunanayake and Wanninayake (2015)
demonstrated that perceived risk significantly impacts the purchase intention of hybrid
vehicles, while Karunanayake (2017) found a similar effect on alternative fuel vehicle
purchase intention. Consequently, the sixth hypothesis of this study investigates:
H6. Perceived risk moderates the relationship between independent variables and EV
purchase intention.
The following sub-hypotheses were used to measure the effectiveness of the moderator
variable on the above relationships.
H6a. Perceived risk moderates the relationship between performance expectancy and
EV purchase intention.
H6b. Perceived risk moderates the relationship between effort expectancy and EV
purchase intention.
H6c. Perceived risk moderates the relationship between social influence and EV
purchase intention.
H6d. Perceived risk moderates the relationship between facilitating conditions and EV
purchase intention.
H6e. Perceived risk moderates the relationship between environmental concern and EV
purchase intention.

2.3 Conceptual framework

Figure 2, the conceptual framework utilized in this study is developed based on the UTAUT
model, alongside other constructs identified in the literature regarding EV adoption. Aligned
with the UTAUT model, key independent variables – performance expectancy, effort
expectancy, social influence and facilitating conditions – are utilized to gauge purchase
 Performance H1
South Asian
Journal of
expectancy Marketing
Effort H2

Expectancy H6a

Social
H3 H6b
Purchase
153
influence H6c Intention
H4
Facilitating H6d

conditions H5
H6e

Environmental
Perceived Risk
concern Figure 2.
Conceptual model
Source(s): Developed by authors based on the literature review

intention (Bhatnagr and Rajesh, 2023; Venkatesh et al., 2003). Additionally, acknowledging
the significance of environmental concerns in influencing consumer behavior toward EV
adoption, environmental concern is also integrated as an independent variable (Noel and
Sovacool, 2016), complementing the UTAUT model variables. The focal dependent variable
is the intention to purchase an EV (Lai et al., 2015). Moreover, beyond examining these direct
relationships, the study posits that consumer-perceived risk moderates the associations
between the independent variables and EV purchase intention.

2.4 Operationalization
The first independent construct, performance expectancy, is measured through perceived
usefulness, outcome expectations and relative advantage (Emsenhuber and Zielke, 2012).
The second construct, effort expectancy, is measured through perceived ease of use,
complexity, and ease of use (Venkatesh et al., 2003). Additionally, social influence (Venkatesh
et al., 2012), facilitating conditions (Brown and Venkatesh, 2005) and environmental concerns
are each measured through three indicators. The moderating construct, perceived risk, is
measured through four indicators: economic risk, functional risk, physical risk and social risk
(Sunitha et al., 2012). Each indicator is further divided into three sub-indicators. The
dependent variable, purchase intention, is measured through three indicators: speaking
favorably, recommending buying and expecting to buy (Ling et al., 2010).

3. Research methodology
3.1 Data collection and sample size
The study targeted nonusers of electric vehicles, including owners of hybrid and
conventional fossil fuel vehicles and prospective car buyers seeking information about
purchasing a motor vehicle. A sample of 500 participants was meticulously chosen using
judgmental sampling techniques, excluding current electric car users. This sample size meets
Samarasinghe and Samarasinghe’s (2013) and Roscoe’s (1975) recommended minimum
sample size guidelines, despite the study’s inclusion of 16 variables.
Both primary and secondary data were utilized in this study. Primary data were collected
through a questionnaire, following methodologies employed by other scholars
SAJM (Karunanayake and Wanninayake, 2015), to explore consumers’ perceptions of electric cars.
5,2 The study encompassed 14 variables, with a structured questionnaire comprising questions
and statements adapted from prior research. A five-point Likert scale was employed for all
indicator questions, while demographic information was collected in the final section.
Before distribution, the questionnaire underwent rigorous validation by two academics to
ensure measurement accuracy. A pilot study with ten car owners refined its readability and
comprehensibility, guiding improvements for clarity. The finalized questionnaire was
154 distributed to 500 nonusers of electric vehicles, yielding 400 completed responses. After
scrutiny for missing data, six questionnaires were excluded, leaving 394 for subsequent
analysis, with an approximate 79% response rate.

3.2 Data analysis

Data analysis occurred in two stages. Initially, descriptive statistical techniques were used to
understand the dataset. Additionally, exploratory factor analysis was performed by using
SPSS software and SMART PLS 3 software to assess the construct validity and reliability.
Subsequently, inferential statistical analysis techniques, particularly structural equation
modeling (SEM), were employed to validate the conceptual model and the hypothesized
relationships.

4. Data analysis and discussion

4.1 Reliability and validity of the constructs
All constructs exhibited a Cronbach’s alpha value exceeding 0.6 and a composite reliability of
0.7 or higher, meeting the reliability criteria (Nunnally, 1978). Factor analysis revealed factor
loadings exceeding 0.5 for all elements, while average variance extracted (AVE) values
surpassed 0.5, establishing convergent validity (Churchil, 1979). Additionally, all variables
demonstrated face and content validity, having been adapted from established measures in
the literature (Sekaran and Bougie, 2009). HTMT correlations were below 0.9, indicating
acceptable discriminant validity for all constructs.

4.2 Test of linearity and normality of the data

According to the results of the SPSS data analysis, the data were non-normal and hence, the
partial least squares (PLS) method was used (Fornell and Bookstein, 1982).

4.3 Composition of the sample

The demographic profile of the respondents summarized according to the respondent
characteristics is shown in Table 1.
In the sample, 88% of respondents were male, while 12% were female. The majority (48%)
fell into the 26–30 age category, with 11% in the 31–35 age range. Regarding education, 52%
were graduates, while only 1.3% had completed up to the advanced level. A significant
portion (90%) held at least a university degree. Occupation-wise, 11.7% were managers, 8.9%
were executive-level employees, 4.5% were academics and 3.5% were businessmen.
Additionally, 3.2% were government employees, with 16.5% representing various other
occupations. In terms of income, 32.4% reported earnings between 100,000 and 150,000 LKR,
while 13.4% earned below 50,000 LKR and 14.7% earned above 200,000 LKR.

4.4 Results of the structural model

The initial measurement model was constructed based on existing literature,
conceptualization and theory. Each linked path between the constructs represents an
explicit research hypothesis to be tested. In this study, six hypotheses were assessed. Figure 3
 South Asian
Respondent characteristics Number Percentage Journal of
Gender Female 47 11.9 Marketing
Male 347 88.1
Age 18–25 24 6.1
26–30 190 48.2
31–35 45 11.4
36–40 34 8.6 155
41–45 36 9.1
46–50 12 3.0
51–55 24 6.1
56–60 11 2.8
Over 60 years 18 4.6
Education Up to advanced level 5 1.3
Diploma level or similar 29 7.4
University degree or similar 206 52.3
Master’s degree or similar 135 34.3
Ph.D. or similar 19 4.8
Occupation Engineering professional 203 51.5
Academic/Lecturer 18 4.6
Manager 46 11.7
Executive level 35 8.9
Businessmen 14 3.6
Government staff 13 3.3
Other 65 16.5
Income Below 50,000 LKR 53 13.5
50,000 LKR–99,999 LKR 117 29.7
100,000 LKR–149,999 LKR 128 32.5
150,000 LKR–199,999 LKR 38 9.6 Table 1.
Above 200,000 LKR 58 14.7 Composition of the
Source(s): Table by authors sample

Figure 3.
Inner model
SAJM and Table 2 illustrate the initial PLS structural model, providing calculated p-values, path
5,2 coefficients and variance explained (R2) for each dependent variable construct.
The results indicate that the model accounts for 47.8% of variability, reflecting its
goodness of fit to the population, considering the sample size and the number of variables and
items utilized (Hair et al., 2011).
4.4.1 The relationship between independent and dependent variables – hypotheses 1–5. The
path coefficients and p-values were derived from bootstrap resampling, a technique used to
156 estimate standard errors and confidence intervals for various statistical measures. Table 3
presents a summary of the path coefficients alongside the corresponding p-values obtained
through bootstrap resampling. Notably, bootstrapping is independent of sample normality or
size, making it a robust method for statistical inference (Efron and Gong, 1983).
The two path coefficients were not significant, as per the result of the bootstrapping
indicated. The PE → PI, SI → PI and FC → PI paths were the significant paths (p < 0.05).
Hence, hypotheses 1, 3 and 4 were accepted and Hypotheses 2 and 5 were rejected. The
relationship between perceived risk and purchase intention (TPR → PI) was significant and
therefore considered the effect of TPR on the above-measured relationships.
4.4.2 Moderation effect – hypotheses 6a–6e. According to Table 4, the relationship between
perceived risk exhibits a significant negative impact on consumer purchase intention.
However, bootstrapping results revealed that none of the path coefficients for moderator
effects were significant. Consequently, hypotheses 6a–6e were rejected, suggesting no
moderating effect of perceived risk on the relationships influencing EV purchase intention.
Following Fornell and Larcker’s (1981) suggestion, various alternative models fitting the data
and theory were explored, leading to a respecification of the structural model to enhance
parsimony and model fit.

Construct R2 R2 adjusted
Table 2.
R-square value of the Purchase intention 0.478 0.463
inner model Source(s): Table by authors

Path coefficient T-statistics p-values

PE → PI 0.342 5.842 0.000

EE → PI 0.033 0.414 0.679
Table 3. SI → PI 0.208 4.027 0.000
Inner model path FC → PI 0.139 2.685 0.007
coefficients and EC → PI 0.070 1.325 0.185
significance level Source(s): Table by authors

Path coefficient T-statistics p-values

TPR → PI 0.114 2.183 0.031

PE*TPR → PI 0.044 0.717 0.473
Table 4. EE*TPR → PI 0.029 0.345 0.731
Inner model path SI*TPR → PI 0.042 0.698 0.485
coefficients and FC*TPR → PI 0.027 0.610 0.542
significance level – EC*TPR → PI 0.104 1.805 0.071
effect of TPR Source(s): Table by authors
4.5 Moderator effect analysis for independent variables South Asian
The authors decided to perform a separate moderator effect analysis for all independent Journal of
variables, considering only one independent variable at a time. Marketing
The authors created separate models in SmartPLS and examined the moderator effect on
each independent variable individually. The path coefficients and calculated p-values from
the bootstrap resampling procedure are summarized in Tables 5 and 6.
The relationship of the PE → PI is the most significant in this model. SI → PI and FC → PI
path coefficients are also significant, indicating that social influence and facilitating 157
conditions do positively influence EV purchase intention (PI); hence, we accept hypotheses 1,
3 and 4.
According to Gopal et al. (1992), in a multiple regression model, path coefficients are
interpreted as standardized beta weights. Lin and Hsieh (2010) suggested that standardized
path coefficients between 0.20 and 0.30 are meaningful. Conversely, Gonzalez and Griffin
(2001) proposed guidelines for studies with limited theoretical or empirical foundations: path
coefficients greater than 0.50 are considered “large” effects, around 0.30 are “medium” effects
and less than 0.10 indicate “small” effects.
The results of this structural model analysis summarized in Table 7 indicate that
performance expectancy (PE) has a significant effect on EV purchase intention, the path
coefficient is 0.422 and (p < 0.05), social influence (SI) has a meaningful significant effect on

Path coefficient T-statistics p-values

Table 5.
PE → PI 0.489 12.650 0.000 Path coefficients and
TPR → PI 0.243 5.242 0.000 significance level –
PE*TPR → PI 0.023 0.608 0.543 moderator effect on PE
Source(s): Table by authors construct

Path coefficient T-statistics p-values

Moderator effect on effort expectancy construct

EE → PI 0.468 8.968 0.000
TPR → PI 0.172 3.036 0.003
EE*TPR → PI 0.018 0.452 0.651
Moderator effect on social influence variable
SI → PI 0.360 7.469 0.000
TPR → PI 0.333 6.776 0.000
SI*TPR → PI 0.026 0.526 0.599
Moderator effect on facilitating conditions variable
FC → PI 0.262 4.618 0.000
TPR → PI 0.343 6.469 0.000
FC*TPR → PI 0.008 0.219 0.827
Moderator effect on environmental concern variable Table 6.
EC → PI 0.268 6.064 0.000 Path coefficients and
TPR → PI 0.365 8.115 0.000 significance level –
EC*TPR → PI 0.029 0.618 0.537 moderator effect
Source(s): Table by authors analysis
SAJM purchase intention (PI) and path coefficient is 0.233 and (p < 0.05). However, the influence of
5,2 these three factors, performance expectancy, social influence, and facilitating conditions, does
not moderate perceived risk. The moderator variable was tested with (Baron and Kenny,
1986) procedures for moderation hypotheses.

4.6 Model fit

158 According to Baron and Kenny (1986), model fit is evaluated using variance explained (R2)
and blindfolding techniques for determining predictive relevance (Q2). To assess the fit of the
model, R2 is used for dependent constructs and Stone–Geisser Q2 is used for predictive
relevance. Table 8 reports the explanatory power of the model. The R2 value is described by
its relationship with the variables believed to affect it. According to Sontag and Pedhazur
(1972), there are no firm criteria to evaluate R2 and the meaning of the R2 value can be changed
significantly between researchers and research study areas. Anyhow, it is suggested that it
be above 0.1 to be meaningful.
R2 of the analysis showed 47.8% purchase intention, which indicates that the model
explains 47.8% of all the variability of the response data around its mean.
This Q2 is an indicator that measures how well the observed values are reproduced by the
model and parameter estimates. Q2 can be calculated using blindfolding testing in SmartPLS,
which attempts to estimate the omitted dataset using the estimated parameters (Fornell and
Bookstein, 1982; Chin et al., 2003).
There are two types of predictive relevance (Q2) estimates, where omitted data points can
be predicted using underlying latent variables to produce cross-validated communality Q2.
Additionally, redundancy Q2 tests how well antecedent constructs predict omitted data.
Positive Q2 results, as shown in Table 9, and reported values closer across omission distances
indicate predictive relevance and stable model estimates, consistent with Fornell and
Bookstein (1982).

Path coefficient T-statistics p-values

PE → PI 0.422 9.891 0.000

Table 7. SI → PI 0.233 4.988 0.000
Revised structural FC → PI 0.202 4.913 0.000
(inner) model results Source(s): Table by authors

Construct R2 R2 adjusted
Table 8.
R-square value of the Purchase intention 0.478 0.463
inner mode Source(s): Table by authors

Omission distance 7 Omission distance 15

Construct Redundancy Q2 Redundancy Q2
Table 9.
Omission Purchase intention 0.416 0.403
distance value Source(s): Table by authors
4.7 Total effects South Asian
In the original model, the hypothesized paths, PE → PI, SI → PI and FC → PI, are significant at Journal of
the 99.9% CI level. The respecified model demonstrates that PE significantly and positively Marketing
influences PI, and social influence and facilitating conditions influence EV purchase
intention. These findings are consistent with the underlying theory and conceptualization of
the original model. The perceived risk of consumers also provided a minor, significant and
negative influence on EV purchase intention, suggesting a negative effect on EV uptake.
159
4.8 Discussion
The study confirms that EVs meet consumer expectations regarding performance and effort
expectancy, but facilitating conditions fall short. Current hybrid and conventional vehicle
owners show minimal purchase intention toward EVs. While people speak positively about
EVs, they do not actively recommend them to others, potentially hindering their uptake.
Overall, the majority remain undecided about purchasing an EV as their next vehicle,
reflecting current consumer perceptions and fulfilling the first research objective.
In examining factors influencing EV purchase intention, the study identified significant
relationships with consumer behavior. Sri Lankan consumers’ performance expectancy
regarding electric vehicles aligns with Jain et al.’s (2022) findings, suggesting that improving
EV performance could enhance uptake. Social influence also emerges as a significant
predictor, alongside the crucial relationship between facilitating conditions and EV purchase
intention. The absence of factors like charging station availability and technical support
significantly affects EV uptake, with “Driving Range” and “Charging Infrastructure” cited as
primary concerns.
In addition, the most important finding of the study is that there is no significant
relationship between the environmental concern of consumers and their purchase intention
for EVs, similar to the findings of Karunanayake and Wanninayake (2015). Further, it was
found that there were no effects of perceived risk on the relationships between independent
variables and dependent variables. Consumers have a greater level of perceived risk
produced from functional and economic risks regarding the EV purchase intention.
Descriptive data analysis highlights substantial perceived risk among both vehicle owners
and potential EV buyers. Unlike prior studies by Karunanayake and Wanninayake (2015) and
Karunanayake (2017), which found a significant relationship between perceived risk and
purchase intention, this study underscores the dominance of factors like performance
expectancy, social influence, facilitating conditions, effort expectancy and environmental
concerns over perceived risk among nonusers of EVs in Sri Lanka. Thus, the direct link between
independent constructs and purchase intention remains unaltered by moderation.

4.9 Policy framework to promote EVs in Sri Lanka

In this section, the authors proposes a framework for the diffusion of EVs in the Colombo
metropolitan area and recommends a set of policies for increasing the rate of adoption of EVs
in Colombo.
Although perceived risk does not moderate the relationship between independent
variables and purchase intention, notable economic and functional risks persist in Sri Lanka’s
EV market. Concerns regarding vehicle resale and repair costs heighten economic risk, while
inadequate infrastructure contributes to functional risk, directly influencing EV purchase
intention. To promote EV adoption, Sri Lanka must prioritize enhancing performance
expectancy, social influence and facilitating conditions while alleviating perceived consumer
risk. Addressing economic risk is critical given Sri Lankan buyers’ emphasis on resale values,
while tackling functional risk is essential for market development, as depicted in Figure 4,
outlining policy directives for the industry.
SAJM Infrastructure Creating Social EV Performance
5,2 Development pressure improvements

Reduction of the
ECONOMIC RISK &
160 FUNCTIONAL RISK

Financial Incentives

Figure 4.
A proposed policy Increasing the EV adoption rate
framework for
promoting EVs
Source(s): Developed by authors

The authors consulted EV charging station professionals and EV owners club officials to
identify new barriers to EV adoption in Sri Lanka, integrating them into Figure 5. Resistance
from fuel station owners, motor vehicle agents and service center owners, as noted by
Sovacool and Hirsh (2009), influences policymakers. Addressing barriers involves tackling
value, cost, image and awareness dimensions, with the strategies proposed for each based on
Mashayekhi’s (2012) findings in Canada. The study’s results inform the development of a
framework emphasizing reducing functional and economic risk through enhancing
facilitating conditions, EV performance expectations and social pressure.

5. Conclusions, implications and further research areas

This research was focused on finding the factors affecting the EV purchase decision and the
relationships between those factors. The target was to fill this gap in the research. The
findings came from six main hypotheses which are performance expectancy, social influence
and facilitating conditions have a significant relationship with EV purchase intention, effort
expectancy and environmental concern do not have a significant relationship with EV
purchase intention and perceived risk does not moderate the relationship between those
factors and EV purchase intention.
This study makes a significant contribution to academia and industry by integrating
environmental concerns into the UTAUT framework using indicators from the New
Environmental Paradigm (NEP). This innovative approach enhances understanding of
factors influencing EV adoption, advancing comprehension of consumer behavior. Moreover,
by incorporating perceived risk as a moderator, the framework gains conceptual robustness
and practical utility. Empirical findings reveal significant impacts of UTAUT constructs on
EV purchase intentions in Sri Lanka, highlighting the framework’s adaptability.
Additionally, identifying social pressure as a key driver underscores the importance of
sustainable product adoption.
Significantly, while environmental concern plays a lesser role in local EV acceptance,
performance expectancy emerges as crucial. Manufacturers must enhance the driving range
and battery life to meet consumers’ high-performance expectations. Marketing strategies
should strategically highlight these factors, potentially outweighing environmental
friendliness in promoting EVs. Additionally, government institutes can prioritize
infrastructure development to further facilitate EV adoption.
 South Asian
Facilitating Conditions Journal of
o Involvement of Government bodies for development of the Infrastructure (Charging Marketing
stations)
o Provision of incentives for the private charging station owners
o Provision of tax encouragements for EV repair center owners
o Invitation for authorized agents to import critical spare parts and provision of tax
incentives. 161
o Provision of ‘free of charge’ parking for EVs in Colombo metropolitan area
o Installation of Charging machines in public parking slots

Reduction of consumers’ Functional

risk produced due to lack of
Performance Expectations
o Promotional initiatives and enhance the awareness and information about latest EVs
o Advertise the lengthy driving range of latest EVs
o Technology enhancing initiatives (by the EV manufacturers)

Social Influence
o Create the social pressure using innovators and early adopters
o Create an environment where people are discussing about EV performances and incentives

Increased social pressure for

EV purchase decision.
Financial incentives

o Create a competitive price for EVs when compared with similar conventional vehicles by
reducing import duties on EVs.
o Reduced vehicle registration charges and reduced revenue tax for EVs
o Increased vehicle registration charges and reduced revenue tax for conventional vehicles
Figure 5.
o Provide financial incentives for EV agents and dealers Detailed policy
o Reduce loan/ leasing facilities for conventional vehicles framework for
promoting EVs
Source(s): Developed by authors

Furthermore, the study highlights the limited moderating impact of perceived risks,
particularly functional and economic, on the relationship between variables and purchase
intention. This finding contributes uniquely to the local literature, indicating minimal social
risk among consumers regarding EV adoption.
The proposed policy framework advocates for the Sri Lankan Government to spearhead
EV adoption through the establishment of a dedicated organization for EV infrastructure and
the cultivation of technical expertise. Integrated programs and incentives for vehicle
stakeholders are deemed crucial, with a focus on facilitating conditions and performance
expectations to drive EV purchase intentions. This highlights the necessity for concerted
efforts to promote adoption in Sri Lanka.
SAJM Although this study provides valuable insights, it has limitations. The sample was
5,2 restricted to Sri Lanka’s Colombo district, primarily comprising educated individuals,
especially graduate professionals under 30, which may bias the results. Future research
should expand the geographic scope and sample demographics for greater generalizability.
Moreover, incorporating a multi-dimensional stakeholder analysis involving authorized
agents, EV importers, and charging station owners could enrich policy frameworks.
Additionally, employing qualitative and mixed-method approaches to explore EV adoption
162 factors is recommended.

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Corresponding author 165

Gayithri Niluka Kuruppu can be contacted at: [email protected]

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