Abstract:
Policies to promote the usage of energy saving vehicles, such as electric vehicles and hybrids,
were introduced and implemented in many countries. The Ethiopian government also introduces
different incentive measures to encourage importation and assembling of electric vehicles.
Among them is the curtailment of tax. Despite all those incentives by the government of Ethiopia,
to encourage the adoption of electric cars, yet majorities are seen to be lagging in adopting
electric cars. The general objective of this study is therefore, to examine determinants of
consumers’ buying preferences for electric vehicles in Addis Ababa, Ethiopia. To this effect, an
explanatory research design was implemented using a questionnaire survey with 286
conveniently selected samples or potential customers who went into electric vehicle shops and
exhibitions for purchasing or acquiring information on EVs in Addis Ababa. The collected data
were analyzed through correlation and multiple regression analysis mainly to determine the
direction and cause-and-effect relationship between the studied variables. The study result
revealed that perceived economic gain appears to be a significant predictor of buyers’ buying
preferences for electric vehicles. Charging stations and infrastructure accessibility also have a
positive and significant effect on buying preferences for electric vehicles followed by consumer
personal innovativeness. However, the regression coefficients indicate that there is positive but
insignificant relationship between public influence and environmental consciousness buying
preferences for electric vehicles. Relevant recommendations are forwarded that aim to
encourage adoption of electric vehicles. Thus, dealers and policymakers should promote or use
the perceived economic benefits of EVs as a reason for intervention in the electric vehicle market
and create more educational promotions to alert the consumers on the advantages and
importance of electric vehicles for having cleaner air to accelerate the adoption of electric
vehicles.
