CONSUMER BEHAVIOR AND ITS ROLE IN THE GROWTH OF INDONESIA’S ELECTRIC VEHICLE INDUSTRY

Authors

  • Grace Virginia Latif Parahyangan Catholic University
  • Laurentius Beta Wijanarko Pranoto Parahyangan Catholic University
  • Orpha Jane Parahyangan Catholic University

DOI:

https://doi.org/10.37253/jgbmr.v8i1.11985

Keywords:

Electric vehicle adoption, Consumer behavior, Social influence, Brand trust, Indonesia

Abstract

The rapid development of Indonesia’s electric vehicle (EV) industry has increased the importance of understanding consumer behavior in the adoption process. This study examines behavioral factors associated with EV adoption in Indonesia through a qualitative thematic analysis of secondary data, including academic literature, policy documents, industry reports, and institutional publications, complemented by expert validation. The analysis identifies five recurring themes: perceived benefits, perceived risks, social influence, brand trust, and incentives. The findings suggest that Indonesian consumers primarily evaluate EVs based on operational efficiency, ownership costs, convenience, and perceived value, while concerns regarding affordability, charging infrastructure, technological reliability, and resale value continue to constrain adoption. By synthesizing evidence from diverse sources, this study provides a context-specific understanding of behavioral considerations relevant to Indonesia’s transition toward sustainable mobility.

Downloads

Download data is not yet available.

References

AC Ventures. (2023, July). Indonesia’s Electric Vehicle Outlook SUPERCHARGING TOMORROW’S MOBILITY. AC Ventures. https://acv.vc/wp-content/uploads/2023/07/Report-Indonesias-Electric-Vehicle-Outlook-Supercharging-Tomorrows-Mobility_NEW.pdf

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

Andini, V. (2024). Indonesia’s rise as an EV Hub. JLL Indonesia. https://www.jll.co.id/en/trends-and-insights/research/indonesias-rise-as-an-ev-hub

Astuti, R. D., & Susanto, A. A. (2024). Challenges of electric vehicle adoption in Indonesia: Revealing the hidden factors affecting purchase intention. Jurnal Siasat Bisnis, 28(2), 149–171. https://doi.org/10.20885/jsb.vol28.iss2.art2

AT Kearney. (2020). Indonesian automotive trends and a road map for 2030. https://www.kearney.com/documents/291362523/291366696/Indonesian+Automotive+Trends+and+a+Road+Map+for+2030.pdf/4fd5bcef-cb71-5bdd-06bd-3879a3858789?t=1578541553000

Basrowi, R. W., Rahayu, E. M., Khoe, L. C., Wasito, E., & Sundjaya, T. (2021). The road to healthy ageing: What has Indonesia achieved so far? Nutrients, 13(10), 1–11. https://doi.org/10.3390/nu13103441

Bhattacharji, C. (2025). Only seven countries meet who air quality standards; most polluted are Chad and bangladesh - northern india also dominates. Health Policy Watch. https://healthpolicy-watch.news/northern-india-dominates-global-air-pollution-rankings/

Bhattacharyya, S. S., & Thakre, S. (2020). Exploring the factors influencing electric vehicle adoption: An empirical investigation in the emerging economy context of India. Foresight, 23(3), 311–326. https://doi.org/10.1108/fs-04-2020-0037

Bohnsack, R., Kolk, A., Pinkse, J., & Bidmon, C. M. (2020). Driving the electric bandwagon: The Dynamics of Incumbents’ Sustainable Innovation. Business Strategy and the Environment, 29(2), 727–743. https://doi.org/10.1002/bse.2430

BPS Statistic Indonesia. (2024). Indonesia’s middle class: A crucial pillar for national economic stability - news and press release - BPS-statistics Indonesia. https://www.bps.go.id/en/news/2024/10/25/622/indonesia-s-middle-class--a-crucial-pillar-for-national-economic-stability.html

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

British Petroleum. (2021). Statistical Review of World Energy 2021. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2021-full-report.pdf

Bryła, P., Chatterjee, S., & Ciabiada-Bryła, B. (2022). Consumer adoption of electric vehicles: A systematic literature review. Energies, 16(1), 1–16. https://doi.org/10.3390/en16010205

Business Indonesia. (2025). Car sales in Indonesia decline amid rising EV popularity. https://business-indonesia.org/news/car-sales-in-indonesia-decline-amid-rising-ev-popularity

Chaturvedi, P., Kulshreshtha, K., Tripathi, V., & Agnihotri, D. (2022). Exploring consumers’ motives for electric vehicle adoption: Bridging the attitude–behavior gap. Benchmarking: An International Journal, 30(10), 4174–4192. https://doi.org/10.1108/bij-10-2021-0618

Creswell, J. W. (2017). Research design : Qualitative, quantitative, and mixed methods approaches. SAGE Publications.

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008

Edelman. (2023, May 24). 2023 Edelman Trust Barometer Indonesia Report. https://www.edelman.id/sites/g/files/aatuss276/files/2023-05/2023%20Edelman%20Trust%20Barometer_Indonesia%20Report.pdf

Eryolanda, E. I., Sukanto, A. G., Teasari, I., & Mahyudi, A. (2024). Factors that influence electric vehicle purchase intention: An evidence from Indonesia. Matrik: Jurnal Manajemen, Strategi Bisnis, dan Kewirausahaan, 18(1). https://doi.org/10.24843/MATRIK:JMBK.2024.v18.i01.p07

Fathoni, F., Kesidou, E., Rifansha, M. M., & Tiftazani, A. (2025). Drivers and barriers of eco-innovation in electric vehicle diffusion: Evidence from Indonesia. Journal of Environmental Management, 389, 1–13. https://doi.org/10.1016/j.jenvman.2025.126021

Glenk, G., Meier, R., & Reichelstein, S. (2021). Cost dynamics of clean energy technologies. Schmalenbach Journal of Business Research, 73(2), 179–206. https://doi.org/10.1007/s41471-021-00114-8

Gohoungodji, P., N’Dri, A. B., Latulippe, J.-M., & Matos, A. L. (2020). What is stopping the automotive industry from going green? A systematic review of barriers to Green Innovation in the automotive industry. Journal of Cleaner Production, 277. https://doi.org/10.1016/j.jclepro.2020.123524

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. https://doi.org/10.3390/su14041972

Hakam, D. F., & Jumayla, S. (2024). Electric vehicle adoption in Indonesia: Lesson learned from developed and developing countries. Sustainable Futures, 8, 1–13. https://doi.org/10.1016/j.sftr.2024.100348

Hardman, S., Shiu, E., & Steinberger-Wilckens, R. (2017). Comparing high-end and low-end early adopters of battery electric vehicles. Transportation Research Part A, 88, 40–57. https://doi.org/10.1016/j.tra.2016.12.013

Harsono, B., & Hermawan, P. (2024). Predicting consumer preferences for electric vehicles in Indonesia using analytical hierarchy process (Case Study Hyundai Motor Indonesia). International Research Journal of Economics and Management Studies, 3(8), 1–7. https://doi.org/10.56472/25835238/irjems-v3i8p154

Hartati, S., Karim, E., & Rashid, I. (2025). Impact of social media activity on consumer’s Brand Trust: A Meta-analysis study from a communication perspective. Business Review and Case Studies, 6(1), 133–143. https://doi.org/10.17358/brcs.6.1.133

Hasudungan, A., Tandean, B., Aurelius, E., Widarsyah, R., & Artha, I. K. (2024). The impact of government incentives on electric vehicle adoption in the metropolitan jakarta area. Jurnal Ekonomi Pembangunan, 21(2), 1–9. https://doi.org/10.29259/jep.v21i2.23050

Higueras-Castillo, E., Molinillo, S., Liébana-Cabanillas, F., & Villarejo-Ramos, Á. F. (2021). The role of environmental concern and social influence in electric vehicle adoption. Technological Forecasting and Social Change, 166, 120664. https://doi.org/10.1016/j.techfore.2021.120664

Huda, A. A., Bridle, R., & Suharsono, A. (2025, February 7). Indonesian electric vehicle boom: A temporary trend or a long-term vision?. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/indonesian-electric-vehicle-boom-temporary-trend-or-long-term-vision

Hyundai. (2025). Hyundai Ioniq 5: Mobil Listrik Premium Dengan Teknologi Terdepan. HYUNDAI MOTORS. https://www.hyundai.com/id/en/hyundai-story/articles/hyundai-ioniq-5-mobil-listrik-premium-dengan-teknologi-terdepan-0000000526#:~:text=Local%20Assembly%20Process%20in%20Indonesia,competitive%20prices%20for%20Indonesian%20consumers

INVI. (2024). How government policies and incentives support the development of electric vehicles?. INVI Indonesia. https://www.invi-indonesia.co.id/blog/how-government-policies-and-incentives-support-the-development-of-electric-vehicles/

Iqbal, M., & Suzianti, A. (2021). New Product Development Process Design for small and Medium Enterprises: A systematic literature review from the perspective of open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 153. https://doi.org/10.3390/joitmc7020153

Jabeen, F., Olaru, D., Smith, B., Braunl, T., & Speidel, S. (2021). Electric vehicle adoption: The role of trust and perceived risk. Energy Policy, 156, 112421. https://doi.org/10.1016/j.enpol.2021.112421

Kulkarni, P., & Kolli, H. (2023). Sensory marketing theory: How sensorial stimuli influence consumer behavior and subconscious decision-making. Journal of Student Research, 11(3), 1–14. https://doi.org/10.47611/jsrhs.v11i3.3403

Kumar, R., & Alok, K. (2020). Adoption of electric vehicles: A literature review and prospects for sustainability. Journal of Cleaner Production, 253, 119911. https://doi.org/10.1016/j.jclepro.2019.119911

Lazuardy, A., Nurcahyo, R., Farizal, & Oktavina, R. (2025). Formulating an electric vehicle adoption model in Indonesia: Product quality, consumer characteristics, adoption context, and perception. International Journal of Sustainable Development and Planning. https://doi.org/10.18280/ijsdp.200131

Li, X., Wang, Y., & Sun, Q. (2023). Brand trust and consumer adoption intentions toward electric vehicles. Sustainability, 15(4), 3278. https://doi.org/10.3390/su15043278

Maghfiroh, M. F., Pandyaswargo, A. H., & Onoda, H. (2021). Current readiness status of electric vehicles in Indonesia: Multistakeholder perceptions. Sustainability, 13(23), 1–25. https://doi.org/10.3390/su132313177

Massie, J., Pandowo, M., & Runtu, V. T. (2022). ANALYZING WULING CONSUMER PURCHASE DECISION AT PT. KUMALA CEMERLANG ABADI (WULING MOTORS) MALALAYANG MANADO. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 10(4), 1–7. https://doi.org/10.35794/emba.v10i4.43881

McCulloch, N., & Surya, I. (2024, October 29). The politics of electric vehicles in Indonesia. E3G. https://www.e3g.org/news/the-politics-of-electric-vehicles-in-indonesia/

McKinsey & Company. (2022). Indonesia takes the lead in sustainable, inclusive growth: Indonesia. https://www.mckinsey.com/id/our-insights/indonesia-takes-the-lead-in-sustainable-inclusive-growth

Medina, A. F. (2024). Indonesia issues new tax incentives to spur EV production and sales. ASEAN Business News. https://www.aseanbriefing.com/news/indonesia-issues-new-tax-incentives-to-spur-ev-production-and-sales

Messias, F., Clara Wresti, M., & Kurniawati, K. (2025). Gen-z purchase intentions towards Electric Vehicles. Dinasti International Journal of Education Management And Social Science, 6(3), 2026–2042. https://doi.org/10.38035/dijemss.v6i3.3938

Mulya, A. (2024). Automotive industry in Indonesia: Opportunities and outlook. InvestinAsia. https://investinasia.id/blog/indonesia-automotive-industry/

Nagle, T. T., Müller, G., & Gruyaert, E. (2023). The Strategy and Tactics of Pricing, 1–360. https://doi.org/10.4324/9781003179566

Naini, N. F., Sugeng Santoso, Andriani, T. S., Claudia, U. G., & Nurfadillah. (2022). The effect of product quality, service quality, customer satisfaction on customer loyalty. Journal of Consumer Sciences, 7(1), 34–50. https://doi.org/10.29244/jcs.7.1.34-50

Nguyen, T. N., Lobo, A., & Greenland, S. (2021). Electric vehicle adoption: The role of perceived usefulness and environmental concern. Transportation Research Part D, 92, 102717. https://doi.org/10.1016/j.trd.2021.102717

Noel, L., Zarazua de Rubens, G., Kester, J., & Sovacool, B. K. (2019). Understanding the socio-technical transition of electric mobility. Energy Research & Social Science, 51, 1–13. https://doi.org/10.1016/j.erss.2019.01.019

Nurhuda, S. F. (2023). Pabrik Hyundai di Cikarang Sehari Bisa produksi 60 unit ioniq 5. detikoto. https://oto.detik.com/mobil-listrik/d-6962175/pabrik-hyundai-di-cikarang-sehari-bisa-produksi-60-unit-ioniq-5

OTO. (2025). Hyundai ioniq 5 2025 Harga OTR, Promo Juli, Spesifikasi & Review. https://www.oto.com/mobil-baru/hyundai/ioniq-5

Petromindo. (2025). Indonesia plans 63,000 EV charging stations by 2030. Petromindo.cpm. https://www.petromindo.com/news/article/indonesia-plans-63-000-ev-charging-stations-by-2030#:~:text=Indonesia%20plans%2063%2C000%20EV%20charging,EV%20charging%20stations%20by%202030

PT PLN. (2024). PLN Terus Genjot penambahan charging station Kendaraan Listrik di Berbagai Daerah. PT PLN (Persero). https://web.pln.co.id/media/siaran-pers/2024/08/pln-terus-genjot-penambahan-charging-station-kendaraan-listrik-di-berbagai-daerah#:~:text=Di%20samping%20itu%2C%20PLN%20juga,mitra%20untuk%20memenuhi%20kebutuhan%20masyarakat

PWC. (2023). Indonesia Electric Vehicle Consumer Survey 2023. https://www.pwc.com/id/en/publications/automotive/indonesia-electric-vehicle-consumer-survey-2023.pdf

PWC. (2024). The Road Ahead: Indonesia’s Electric Vehicle Readiness and Consumer Insights 2024. https://www.pwc.com/id/en/publications/automotive/indonesia-electric-vehicle-readiness-consumer-insights-2024.pdf

PWC. (2025). Indonesia’s EV market shows strong growth despite broader industry challenges. PwC. https://www.pwc.com/id/en/media-centre/press-release/2025/english/indonesias-ev-market-shows-strong-growth-despite-broader-industry-challenges.html#:~:text=The%20EV%20share%20of%20total,reach%2029%25%20by%202030.%E2%80%9D

Qiu, K., & Zhang, L. (2024). How online reviews affect purchase intention: A meta-analysis across contextual and cultural factors. Data and Information Management, 8(2), 100058. https://doi.org/10.1016/j.dim.2023.100058

Rasyid, A., Joshua, J., Khadijah, M., Qalbi, P. A., & Nurcahyo, R. (2023). Total cost analysis of combustion and electric cars in Indonesia. Proceedings of the International Conference on Industrial Engineering and Operations Management, 1–9. https://doi.org/10.46254/an13.20230233

Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press. https://books.google.co.id/books?id=9U1K5LjUOwEC&printsec=frontcover#v=onepage&q&f=false

Salsabila, Hana, & Salehudin, I. (2023). Plugged in and charging: Environmentalism factors does affect behavioral intention to purchase electric cars in Indonesia, but non-environmental factors are important too. Smart City, 3(2), 1–21. https://doi.org/10.56940/sc.v3.i2.1

Salsabila, Helmi, Habibi, R., & Harani, N. H. (2023). Social Media-based sentiment analysis: Electric Vehicle Usage in Indonesia. The Indonesian Journal of Computer Science, 12(3), 1132–1146. https://doi.org/10.33022/ijcs.v12i3.3250

Saputra, S., Yulfiswandi, & Yuwono, W. (2024). How Government Incentives Shape Consumer Intention to Adopt Electric Vehicles: A Study in Batam City. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 12(4), 403–420. https://doi.org/10.22437/ppd.v12i4.36897

Sovacool, B. K., Kester, J., Noel, L., & de Rubens, G. Z. (2018). The demographics of electric vehicle adoption. Transportation Research Part D, 62, 386–400. https://doi.org/10.1016/j.trd.2018.03.019

Syuhada, G., Akbar, A., Hardiawan, D., Pun, V., Darmawan, A., Heryati, S. H., Siregar, A. Y., Kusuma, R. R., Driejana, R., Ingole, V., Kass, D., & Mehta, S. (2023). Impacts of air pollution on health and cost of illness in Jakarta, Indonesia. International Journal of Environmental Research and Public Health, 20(4), 2916. https://doi.org/10.3390/ijerph20042916

Tarrow, S. (2019). Comparison, triangulation, and embedding research in history: A methodological self-analysis. Bulletin of Sociological Methodology/Bulletin de Méthodologie Sociologique, 141(1), 7–29. https://doi.org/10.1177/0759106318812786

US Department of Energy. (2021). Electric vehicle (EV) definition. https://afdc.energy.gov/laws/12660

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540

Vespestad, M. K., & Clancy, A. (2021). Exploring the use of content analysis methodology in consumer research. Journal of Retailing and Consumer Services, 59, 1–9. https://doi.org/10.1016/j.jretconser.2020.102427

Wang, Q., Zhang, W., Li, J., Mai, F., & Ma, Z. (2022). Effect of online review sentiment on product sales: The moderating role of review credibility perception. Computers in Human Behavior, 133, 107272. https://doi.org/10.1016/j.chb.2022.107272

Wellbrock, W., Ludin, D., Röhrle, L., & Gerstlberger, W. (2020). Sustainability in the automotive industry, importance of and impact on automobile interior – insights from an empirical survey. International Journal of Corporate Social Responsibility, 5(1), 1–11. https://doi.org/10.1186/s40991-020-00057-z

Wuling. (2025). Mobil Listrik Air EV: Harga, Subsidi, Spesifikasi, interior, Diskon Pemerintah, Pajak & PPN 2025. Wuling. https://wuling.id/id/air-ev

Wuling. (2023). #thisismyevway becomes a way for consumers to share the excitement with Wuling Air EV. Wuling. https://wuling.id/en/blog/press-release/thisismyevway-becomes-a-way-for-consumers-to-share-the-excitement-with-wuling-air-ev

Zhang, M., Sun, L., Li, Y., Wang, G. A., & He, Z. (2023). Using supplementary reviews to improve customer requirement identification and product design development. Journal of Management Science and Engineering, 8(4), 584–597.

Downloads

Published

2026-07-09