INTRODUCTION in India. Pollution from automobile becomes

INTRODUCTION AND BACKGROUND

 

                    India is one of the hot
destinations for manufacturing and selling of automotive. India was fourth largest vehicle
manufacturer in the world 2016, producing 23.96 million vehicles in financial
year 2015-16. The total turnover of
the auto industry amounted to USD 145 billion in 2015-16. Nearly 13 million
workers are working in automotive industry. Indian passenger vehicle exports
amounted to 0.76 million units in 2015-17. Over 3.05 million units of passenger
vehicles, 0.71 million commercial vehicles, 17.59 million two wheelers and 0.51
million three wheelers are sold in year 2017 (Indian auto industry; Dec9 2017).

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Domestic sales of vehicles increase 10.05% in 2017 (Economics Time Auto; June
09 2017). Due to fast increase in number of vehicles in India, the air
pollution also increases faster.

 

Now days Air
pollution become a serious issue in India. The world has taken note of the
discussions that India may be planning a major shift to electric vehicles by
2030. To reduce the air pollution Indian government aspires for nation with
hundred percent electric vehicles by 2030. An electric vehicle is a key
technology to reduce the emission of green house gases and carbon dioxide from
automobile. India is working on a new policy for electric vehicles. The sales
of electric cars are one of the growing markets in India. Pollution from
automobile becomes environment concerns in many countries. Burning fossil fuel
is the important cause of the pollution. The cost of fuel is playing a major
role in India. The increase in growth of motorcycles, cars and increase in cost
of oil price in world market were leads to increase the cost of fuels. In India
cost of Petrol is more than diesel. Electric vehicle also help in reducing the
consumption of energy in automobile sector. The adoption of electric passenger
vehicles is expected to save India about USD 300 billion in oil imports.

 

Federation of Indian
chambers of commerce and industry and Rocky mountain institute says, this
annual market size would present an opportunity for Indian companies to become
leader in electric vehicle technology on a global scale.  TATA Motors signed new contract with Indian
government for supplying 10,000 electric cars. These 10,000 electric cars will
be provided to Energy efficiency service limited for $17,200 per unit. Energy
efficiency service limited is a joint venture with National Power Corporation,
Rural Electrification Corporation, and Power Finance Corporation. India
unveiled ‘National Electric Mobility Mission Plan (NEMMP) 2020’ in 2013 to
address the issues of National energy security, vehicular pollution and growth
of domestic manufacturing capabilities.

 

Minister of State for
Power and Renewable Energy Piyush Goyal said the centre is preparing a road map
to ensure that only electric vehicles will be produced and sold in the country
by 2030. Rejecting hybrid vehicles as being unviable, he described it as an
intermediate technology, which the country has no use for. India should opt for
the best available technology. A few manufacturers are promoting hybrid
vehicles because they do not have electric vehicles in their portfolio, he said.

This means that if the government pushes to implement this policy most of the
vehicles on Indian streets will be powered by electricity rather than petrol
and diesel. CNG vehicles will also be phased out.

 

Our proposed work is
the survey to know, Indian people purchase intention toward Electric cars. From
this study, we can understand, whether the change will be profitable for people
and manufacturers or not. This is the correct time to study about this, because
generally a car lifetime given by Government Regional Transport Authority is maximum
of fifteen year. So we already in the time limit. And various car-manufacturing
companies have already started manufacturing the Electric cars.   

 

 

PROBLEM
STATEMENT

 

The main problems are Environmental pollution, increase
in cost of fuel and the government order about cars after 2030. Environmental
issues are critical nowadays. More than a million people die in India every
year as a result of breathing in toxic fumes, with an investigation by
Greenpeace finding that the number of deaths caused by air pollution is only a
fraction less than the number of smoking-related deaths. The investigation also
found that 3% of the country’s gross domestic product was lost due to the
levels of toxic smog. In 2014, the World Health Organization determined that
out of the 20 global cities with the most air pollution, 13 are in India. Petrol
and diesel prices have hit 3-year high even though crude oil prices have almost
halved during the period. India is importing more and more of the crude oil it
needs. The fact also is that more and more of the imported and expensive fuel
is being used to drive vehicles-commercial and personal. By 2006, the country
was consuming 120 million tones of crude oil, but produced only 34 million tones
domestically. The problem is that domestic production has more or less
stagnated, but consumption is spiraling. Therefore, we import more. Any
increase in the international price of crude hits India badly. A staggering
share of public money goes into buying crude oil. After the price hike last
year, many Delhi-ITs reportedly switched to buses and the metro–the Delhi
Metro Rail Corporation flaunted a 12 per cent increase in trips. According to
data collected by the Central Statistical Organization over the past 10 years,
transport accounts for a greater proportion of the household budget in India. It
is clear that fuel price, in particular the price of transportation, costs each
household. Indians are spending more on conveyance than ever before, especially
the more affluent in cities, who rely heavily on personal vehicles. Other than
these, the important reason is the announcement by government about banning
petrol and diesel vehicles after 2030. 
As many companies started manufacturing Electric cars, some companies
already selling the electric cars. Peoples started purchasing the electric cars
now days. Widespread adoption of electric vehicles (EVs) may contribute to the
alleviation of problems such as environmental pollution, global warming and oil
dependency.

 

 

 

 

LITERATURE REVIEW

 

Based on the work of
Beliveau (2010), cars contribute to almost 25% of global CO2 emissions. The
significant volume of cars has contributed to urban pollution in the bigger
picture of global warming. In order to stop or slow down the global warming due
to emissions of CO2, a hybrid car is considered the most innovative product in
the automotive industry (Yon, Nasreen Khan & Muhammad, 2012). The Theory of
Planned Behavior was developed in response to a related existing model— The
Theory of Reasoned Action (TRA) (Ajzen, 1988, 1991). Briefly, the Theory of
Reasoned Action (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980) places
intention as the principal predictor of behavior. So conceived, the more one
intends to engage in behavior, the more likely is the occurrence of the
behavior. Determining intention are attitude and subjective norm. The attitudinal
determinant of intention is defined as the overall evaluation of behavior. This
overall evaluation, in turn, is composed of the salient beliefs: the perceived
likelihood of particular consequences of the behavior occurring, weighted by an
evaluation of the consequences. The subjective norm determinant of attitude is
conceptualized as social pressure from significant others to perform or not
perform the behavior. The subjective norm, in turn, is composed of normative
beliefs: the perceived pressure from salient referents, weighted by the
motivation to comply with the referents. The TRA has received support across a
range of contexts (Sheppard, Hartwick, & Warshaw, 1988). A recognized
limitation of the TRA is that it was developed to deal with behaviors that are
completely under an individual’s volitional control (Ajzen, 1988; Fishbein,
1993).

 

Theory of Consumption
Value (TCV) is a main source of competitive advantage for a company as
consumers nowadays put their concerns more in value to perform their purchasing
behaviour (Woodruff, 1997; Teoh & Noor, 2015). Furthermore, to be more
specific, perceived value becomes one of the significant variables in affecting
the consumer purchasing choices (Zeithaml, 1988; Yeo, Mohamed, & Muda,
2016). Same goes to green perceived value, green PI is positively affected by
it (Chen & Chang, 2012; Teoh & Noor, 2015).  Sheth, Newman, and Gross (1991a) are
significant contributors of perceived value studies among the various perceived
value approaches (Sanchez-Fernandez & Iniesta-Bonillo, 2007; Teoh &
Noor, 2015). In the later year, they expanded the idea of perceived value to be
recognized as consumption value, which is now known as TCV (Yeo et al., 2016). Social
values are perceived utility obtained from association with one or more social
groups (Sheth et al, 1991a, p. 161). 
Social values are meaning associated with the product as well as the
product image (Sheth et al. 1991; Teoh and Noor 2015). Perceived net utility
gained from the consumption and utilization of green product according to the
social pressure perception or the reputation and esteem obtained from the
engagement and involvement in environmental preserving (Biswas and Roy,2015a). EPV
is defined as the perceived utility that resulting from a situation that causes
curiosity provides knowledge and/or satisfies the wish (Sheth et al., 1991a).

Thus, marketers agree that the consumers? buying intention can be influenced by
the uses of „innovation and variety searching? (Burcu & Seda, 2013). According
to Hur, Yoo, and Chung (2012), CV may be affected by antecedent social or
physical conditions that improve a product?s FV and SV (Awuni & Du,
2015).   CV may support or restrict a
decision or choice (Hung & Hsieh, 2010). Researcher has pointed that the
majority of the products are bought related to particular conditions or
circumstances (Bayer & Ke, 2013; Samson & Voyer, 2014). The norms
designed to measure the grade at which a significant want them to perform is
called subjective norm as termed by Rivis & Sheeran, 2003. The customers
need to embrace the technology with their willingness happens due to Subjective
Norms. The effect of subjective norms on creating intention exposed to be
commonly weaker in prior readings than the effect of attitude (Ham, Jeger,
& Ivkovic?, 2015) The study of Norris Krueger and his classmates (Krueger,
Reilly, & Carsrud, 2000) presented that subjective norms are not
interrelated with the intention of persons to establish their own businesses.

So the authors argue that the long-established connection between subjective
norms and intentions indicates the likely presence of projecting effect of
these factors, giving method to a strong inspiration for additional study. Customer
purchase intention defined as pivotal determinant of actual purchasing behavior
of customers where the higher the intention will lead to higher probability of
the customer will make the purchase actually (Rehman and Dost, 2013). Rehman
and Dost (2013) stated that intentions are totally controllable by customer
deliberately.  According to Mei, Ling,
and Piew (2012), by using information in an organized manner, men act
rationally for they will look at the effects of their actions before they
engage in some actual behaviours. Besides, Dodds, Monroe and Grewal (1991) and
Schiffman and Kanuk (2000) said that PI will lead to customer?s willingness to
purchase a product.   In our research, we
focus on PI as intention has extensive implications and it influences actions
of individual positively (Driver & Ajzen, 1992; Schlosser et al., 2006;
Pierre et al., 2005).

 

 

RESEARCH
OBJECTIVE

 

To examine the relationship between subjective norms and
people purchase intention towards Electric cars in India.

 

To examine the relationship between social values and people
purchase intention towards Electric cars in India.

 

To examine the relationship between Attitude and people
purchase intention towards Electric cars in India.

 

To examine the relationship between Epistemic values and people
purchase intention towards Electric cars in India.

 

To examine the relationship between Conditional values
and people purchase intention towards Electric cars in India.

 

RESEARCH QUESTIONS

 

What is the
relationship between Subjective norm and people purchase intention towards
Electric car in India?

 

What is the
relationship between Social value and people purchase intention towards
Electric car in India?

 

What is the
relationship between Attitude and people purchase intention towards Electric
car in India?

 

What is the
relationship between epistemic value and people purchase intention towards
Electric car in India?

 

What is the
relationship between conditional values and people purchase intention towards
Electric car in India?

 

 

 

 

RESEARCH
MODEL

 

 

Research model is derived from Theory of Planned Behavior
and Theory of consumption values.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VARIABLES

INDIPENDENT VARIABLES                                DEPENDENT
VARIABLES

 

Subjective norms.                                                   Purchase
intention

Social values.

Attitude

Epistemic values.

Conditional values.

HYPOTHESES:

 

H1 There is a
positive correlation between subjective norm and people purchase intention
towards electric cars in India.

 

H2 There is a
positive correlation between Social value and people purchase intention towards
electric cars in India.

 

H3 There is a
positive correlation between Attitude and people purchase intention towards
electric cars in India.

 

H4 There is a
positive correlation between Epistemic values and people purchase intention
towards electric cars in India.

 

H5 There is a
positive correlation between Conditional values and people purchase intention
towards electric cars in India.

RESEARCH
METHODOLOGIES

 

In this research I am going to use quantitative approach
in evaluating how values may influence the customer purchase intention towards
Electric cars in India throughout this research. Quantitative approach tends to
be a highly trusted method in using numbers to represent the opinions or ideas.

This approach is suitable to investigate the behavioral component like the
customer PI. Chalmers (1976) stated that quantitative approach involves asking
and answering questions through conducting survey among respondents such as using
questionnaire. Thus, we will use survey methodology to gather the data needed.

 

METHODS
OF GATHERING DATA

 

The survey questionnaire is framed with thirty questions
based on the independent and dependent variable along with the personal
questions. This questionnaire is distributed to peoples by random method in
various places in India to meet the target.

 

SAMPLE
DESIGN

 

This research follows simple random sampling in order to
reach the objective.

 

 

STATISTICAL
TREATMENT

 

R is a language and environment for statistical computing
and graphics.

R provides a wide variety of statistical (linear and
nonlinear modeling, classical statistical tests, time-series analysis,
classification, clustering,) and graphical techniques, and is highly
extensible.

One of R’s strengths is the ease with which well-designed
publication-quality plots can be produced, including mathematical symbols and
formulae where needed. Great care has been taken over the defaults for the
minor design choices in graphics, but the user retains full control.

The term “environment” is intended to characterize it as
a fully planned and coherent system, rather than an incremental accretion of
very specific and inflexible tools, as is frequently the case with other data
analysis software.