Willingness to Pay for Attribute of Electric Vehicles in Thailand

Abstract

Between 2017 and 2020, the number of newly registered electric vehicles in Thailand skyrocketed by 191%, demonstrating that Thais are becoming more interested in electric vehicles. As a result, this research aims to (a) study potential consumers' purchasing preference for electric vehicles and (b) estimate the willingness to pay for each attribute of electric vehicles. This study conducted a choice experiment using an online survey to collect a sample of 207 electric vehicles potential buyers. The mixed logit model was used to examine the key attributes of electric vehicles that affect consumers' willingness to pay. Consumers are willing to pay a relatively high price for electric vehicles with a long driving range, followed by low battery recharging time and vehicle maintenance costs. Specifically, the respondents were willing to pay significantly more for the driving range of 400 km comparing to that of 200 km or 100 km. Furthermore, the respondents were willing to pay significantly more for a shorter recharging time of 60 or 120 minutes comparing to 360 minutes. The above results can be utilized to provide design and marketing recommendations for the electric vehicle industry.