Generation Y and the Shift to Electric Vehicles in Indonesia: Exploring Key Drivers and Barriers

https://doi.org/10.35912/jbpd.v4i2.4531
Published: Jan 15, 2025

Abstract:

Purpose: Compared With other Asian countries, the usage rate of electric vehicles in Indonesia remains slow owing to a lack of public interest. This paper explores some significant factors that affect the interest of electric vehicles for Gen Y EV products, including environmental concerns and individual consequences.

Research Methodology: We extend the previous study by adding other variables, including individual and environmental consequences. Data from 446 respondents were collected through a judgmental sampling procedure and analyzed using partial least squares structural equation Modeling.

Results: The results showed that attitudes towards the five dimensions of the UTAUT-2 model significantly influenced intention to purchase. However, attitude did not mediate the relationship between habit and purchase intention. On the other hand, attitude mediation vastly influences not only the association between individual consequences and purchase intention, but also that between environmental concerns and purchase intention. On the other hand, subjective norms also have a positive influence on purchase intention, while perceived risk is not considered to affect the purchasing decisions of Generation Y.

Conclusions: This study found that Generation Y’s purchase intention toward electric vehicles in Indonesia is significantly influenced by favorable attitudes formed through factors such as performance expectancy, ease of use, price value, personal benefits, and environmental concern. Social influence and perceived behavioral control also play important roles, while perceived risk was found to be insignificant in affecting purchasing decisions.

Limitations: This research is limited to the perspective of Generation Y in Indonesia and may not reflect the behavioral intentions of other generational cohorts or regions.

Contributions: These conclusions contribute to the growing body of knowledge on sustainable mobility by integrating UTAUT-2 and TPB frameworks to identify critical behavioral determinants among Generation Y. The insights provide valuable implications for electric vehicle manufacturers, marketers, and policymakers to craft more targeted, effective strategies aimed at increasing EV adoption.

Keywords:
1. Electric Car
2. Environmental Concern
3. Generation Y
4. Individual Consequences
5. Perceived Risk
6. Purchase Intention
7. Theory Planned of Behaviour
8. UTAUT2
Authors:
1 . Indira Rachmawati
2 . Ichwan Faiz Al Amin
View PDF
How to Cite
Rachmawati, I. ., & Al Amin, I. F. . (2025). Generation Y and the Shift to Electric Vehicles in Indonesia: Exploring Key Drivers and Barriers. Jurnal Bisnis Dan Pemasaran Digital, 4(2), 133–145. https://doi.org/10.35912/jbpd.v4i2.4531
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 4 No. 2 (2025): Januari
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Afnan, D., Wijaya, M., Kartono, D. T., & Wibowo, A. (2024). Sustainability strategy: Strengthening SDGs desa through CSR communication program. Journal of Sustainable Tourism and Entrepreneurship, 5(3), 179-190.

    Afroz, R., Masud, M. M., Akhtar, R., Islam, M. A., & Duasa, J. B. (2015). Consumer purchase intention towards environmentally friendly vehicles: an empirical investigation in Kuala Lumpur, Malaysia. Environmental Science and Pollution Research, 22, 16153-16163.

    Afroz, R., Rahman, A., Masud, M. M., Akhtar, R., & Duasa, J. B. (2015). How individual values and attitude influence consumers’ purchase intention of electric vehicles—Some insights from Kuala Lumpur, Malaysia. Environment and Urbanization ASIA, 6(2), 193-211.

    Ajzen, I. (1991). The Theory of planned behavior. Organizational Behavior and Human Decision Processes.

    BPS. (2021). Statistik Kelapa Sawit Indonesia 2021.

    Chen, S.-H., & Shun, Y.-L. (2023). Integrating Importance-Satisfaction Model and Performance Evaluation Matrix to improve service quality. International Journal of Financial, Accounting, and Management, 5(3), 373-386.

    Cooper, D. R., & Schindler, P. S. (2013). Business research methods.

    Featherman, M., Jia, S. J., Califf, C. B., & Hajli, N. (2021). The impact of new technologies on consumers beliefs: Reducing the perceived risks of electric vehicle adoption. Technological Forecasting and Social Change, 169, 120847.

    Gunawan, I., Redi, A. A. N. P., Santosa, A. A., Maghfiroh, M. F. N., Pandyaswargo, A. H., & Kurniawan, A. C. (2022). Determinants of customer intentions to use electric vehicle in Indonesia: An integrated model analysis. Sustainability, 14(4), 1972.

    Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling.

    Huang, X., & Ge, J. (2019). Electric vehicle development in Beijing: An analysis of consumer purchase intention. Journal of cleaner production, 216, 361-372.

    Jacoby, J., Olson, J. C., & Haddock, R. A. (1971). Price, brand name, and product composition characteristics as determinants of perceived quality. Journal of applied psychology, 55(6), 570.

    Jain, N. K., Bhaskar, K., & Jain, S. (2022). What drives adoption intention of electric vehicles in India? An integrated UTAUT model with environmental concerns, perceived risk and government support. Research in Transportation Business & Management, 42, 100730.

    Ndoh, U. N., & Umbugadu, M. A. (2024). Multimedia instructional materials in teaching basic science concepts for students with hearing impairment. Journal of Social, Humanity, and Education, 4(3), 181-192.

    Nurullah, A., Gozali, E. O. D., Hamzah, R. S., Bakti, H., Khasman, R., & Maharani, M. A. (2024). An assessment of banking sector performance in Indonesia. International Journal of Financial, Accounting, and Management, 5(4), 407-417.

    Roche, M. Y., Mourato, S., Fischedick, M., Pietzner, K., & Viebahn, P. (2010). Public attitudes towards and demand for hydrogen and fuel cell vehicles: A review of the evidence and methodological implications. Energy policy, 38(10), 5301-5310.

    Shalender, K., & Sharma, N. (2021). Using extended theory of planned behaviour (TPB) to predict adoption intention of electric vehicles in India. Environment, Development and Sustainability, 23(1), 665-681.

    Stern, P. C. (1992). Psychological dimensions of global environmental change. Annual review of psychology.

    Wang, S., Fan, J., Zhao, D., Yang, S., & Fu, Y. (2016). Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model. Transportation, 43, 123-143.

    Wang, X.-W., Cao, Y.-M., & Zhang, N. (2021). The influences of incentive policy perceptions and consumer social attributes on battery electric vehicle purchase intentions. Energy policy, 151, 112163.

    Yuen, K. F., Huyen, D. T. K., Wang, X., & Qi, G. (2020). Factors influencing the adoption of shared autonomous vehicles. International Journal of Environmental Research and Public Health, 17(13), 4868.

  1. Afnan, D., Wijaya, M., Kartono, D. T., & Wibowo, A. (2024). Sustainability strategy: Strengthening SDGs desa through CSR communication program. Journal of Sustainable Tourism and Entrepreneurship, 5(3), 179-190.
  2. Afroz, R., Masud, M. M., Akhtar, R., Islam, M. A., & Duasa, J. B. (2015). Consumer purchase intention towards environmentally friendly vehicles: an empirical investigation in Kuala Lumpur, Malaysia. Environmental Science and Pollution Research, 22, 16153-16163.
  3. Afroz, R., Rahman, A., Masud, M. M., Akhtar, R., & Duasa, J. B. (2015). How individual values and attitude influence consumers’ purchase intention of electric vehicles—Some insights from Kuala Lumpur, Malaysia. Environment and Urbanization ASIA, 6(2), 193-211.
  4. Ajzen, I. (1991). The Theory of planned behavior. Organizational Behavior and Human Decision Processes.
  5. BPS. (2021). Statistik Kelapa Sawit Indonesia 2021.
  6. Chen, S.-H., & Shun, Y.-L. (2023). Integrating Importance-Satisfaction Model and Performance Evaluation Matrix to improve service quality. International Journal of Financial, Accounting, and Management, 5(3), 373-386.
  7. Cooper, D. R., & Schindler, P. S. (2013). Business research methods.
  8. Featherman, M., Jia, S. J., Califf, C. B., & Hajli, N. (2021). The impact of new technologies on consumers beliefs: Reducing the perceived risks of electric vehicle adoption. Technological Forecasting and Social Change, 169, 120847.
  9. Gunawan, I., Redi, A. A. N. P., Santosa, A. A., Maghfiroh, M. F. N., Pandyaswargo, A. H., & Kurniawan, A. C. (2022). Determinants of customer intentions to use electric vehicle in Indonesia: An integrated model analysis. Sustainability, 14(4), 1972.
  10. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling.
  11. Huang, X., & Ge, J. (2019). Electric vehicle development in Beijing: An analysis of consumer purchase intention. Journal of cleaner production, 216, 361-372.
  12. Jacoby, J., Olson, J. C., & Haddock, R. A. (1971). Price, brand name, and product composition characteristics as determinants of perceived quality. Journal of applied psychology, 55(6), 570.
  13. Jain, N. K., Bhaskar, K., & Jain, S. (2022). What drives adoption intention of electric vehicles in India? An integrated UTAUT model with environmental concerns, perceived risk and government support. Research in Transportation Business & Management, 42, 100730.
  14. Ndoh, U. N., & Umbugadu, M. A. (2024). Multimedia instructional materials in teaching basic science concepts for students with hearing impairment. Journal of Social, Humanity, and Education, 4(3), 181-192.
  15. Nurullah, A., Gozali, E. O. D., Hamzah, R. S., Bakti, H., Khasman, R., & Maharani, M. A. (2024). An assessment of banking sector performance in Indonesia. International Journal of Financial, Accounting, and Management, 5(4), 407-417.
  16. Roche, M. Y., Mourato, S., Fischedick, M., Pietzner, K., & Viebahn, P. (2010). Public attitudes towards and demand for hydrogen and fuel cell vehicles: A review of the evidence and methodological implications. Energy policy, 38(10), 5301-5310.
  17. Shalender, K., & Sharma, N. (2021). Using extended theory of planned behaviour (TPB) to predict adoption intention of electric vehicles in India. Environment, Development and Sustainability, 23(1), 665-681.
  18. Stern, P. C. (1992). Psychological dimensions of global environmental change. Annual review of psychology.
  19. Wang, S., Fan, J., Zhao, D., Yang, S., & Fu, Y. (2016). Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model. Transportation, 43, 123-143.
  20. Wang, X.-W., Cao, Y.-M., & Zhang, N. (2021). The influences of incentive policy perceptions and consumer social attributes on battery electric vehicle purchase intentions. Energy policy, 151, 112163.
  21. Yuen, K. F., Huyen, D. T. K., Wang, X., & Qi, G. (2020). Factors influencing the adoption of shared autonomous vehicles. International Journal of Environmental Research and Public Health, 17(13), 4868.