Determinants of European Consumers’ Purchase Intention Toward Hybrid and Electric Vehicles: A PESTLE Analysis

Abstract

The promotion of hybrid and electric vehicles (HEVs/EVs) has been a key point in the European shift towards sustainable mobility. The industry has been growing fast during the last ten years, but the growth has been heterogeneous at the regional level due to differences in income, infrastructures, and supportive policies. The current study examines the determinants of European consumers’ intentions to buy HEVs/EVs. The analysis uses a PESTLE framework to analyse political, economic, social, technological, legal, and environmental conditions informing consumer adoption. The study reveals how EU climate regulations are stringent, national support, and local non-monetary motivations influence market penetration. The study also cites common challenges like high installation costs, severe price sensitivity, limited rural presence in some areas, and social or cultural variations in consumer behaviours. While technological advances and safety and recycling laws offer room for future growth, environmental benefits are contingent upon sustainable electricity supply and raw material handling. Studies identify that adoption forms a multi-sided process driven by affordability, availability, and awareness. To address the issues, the present study recommends the harmonization of the subsidies in the member states, the provision of special financial support for the poorer consumers, the addition of charging points for rural areas, and the communication of total cost of ownership advantages.