Consumer preferences for electric vehicles in Germany

Abstract

Purpose. Analyze the preference for battery electric vehicles (BEVs) as opposed to hybrid electric vehicles (HEVs) or normal combustible vehicles (NCVs) in Germany. Design. Survey of 400 respondents who stated their preference for one of the three vehicles and considered purchase price, driving range, fuel costs, emissions, refueling availability, refueling time, acceleration and policy incentives. Binary and multinomial choice logit models are applied. Main findings. We find strong evidence that previous experience of driving a BEV and car sharing are significant factors to state a preference for electric cars. Other factors such as driving range, purchase price, gender, ecological awareness and incentives such as tax exemptions also influence the choice. Originality. The preference for BEVs among German customers would increase if granted the opportunity of a driving experience and, more intensely when combined with car sharing opportunities. Increasing the availability of car sharing of electric vehicles seems an excellent way to penetrate the market.