Chinese Consumers'Attitude toward Electric Vehicle on case of BYD company

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With development ofthe Chinese economy increasing pollution and energy dependency on imported fuels is becoming a critical problem. Currently, the State Planning Commission and the State Science and Technology Commission, which are led by the State Council, are charged with responsibility for the management ofChinas sustainable development, that is, for the implementation and administration of Chinas Agenda 21.Therefore, both foreign and local automakers and suppliers are venturing into the of new energy cars in aims oftaking bigger shares ofworlds fastest-growing auto market-China. This thesis concentrates on a new technology acceptance by Chinese consumers inautomobile industry. Research studies two main issues- the attitude ofconsumers toward purchasing environment-friendly vehicle and the attitude of consumers in adaptation a new technology of electric vehicle in China.BYD Company, Ltd. is the local leader in the production of hybrid and electric cars in China. Its new dual mode electric car F3DM went on sale in December 2008 and has failed to attract Chinese consumers. The firm has sold only 80 models; 20 0fthose were bought by the city of Shenzhen with the rest going to the local branch of China Construction Branch. Ultimately, the main objective ofthe thesis is to develop a conceptual framework of the factors that impact the decision of Chinese consumers to adopt an electric vehicle in China, based on previous conceptual models of the adoption of an innovation and a qualitative research on electric vehicle acceptance. First with a quantitative test study will concentrate on the attitude of consumers toward purchasing sustainable vehicles. Later on a Decomposed Theory of Planned Behavior (DTPB) and its frame work will be used to set up an explorative study to find out factors and concerns which influence Chinese consumers exception of environmentally friendly BYD F3DM vehicle. This framework can be applied in follow-up research to contribute to the development ofsustainable products and BYDs electric car. The second chapter will briefly introduce the most actual facts of market environment which effect Chinese car consumer and figures of automobile industry in China, Factors that encourage consumers to purchase automobiles, but also several factors that slow down development ofthe automobile industry. Later study takes a close look on electric car market in China and revolutionary development ofelectric vehicles by BYD company. Its technology innovation, cost ofproduction and consumer value proposition. The main part ofthe paper presents results ofthe consumer attitudes toward sustainable consumer behavior and purchase ofBYDs F3DM electric car. Several problems were pointed out with reliability of technology, production cost and consumer value proposition. Apart from infrastructural issues (charging stations) and battery issues (safety, mileage), consumer issues (perceptions, acceptance) need to be addressed. The advantages of electric car are mainly socially related and the disadvantages more individually related. In the long run it may be better for the society as a whole, but it takes a lot of effort from the individual to choose for this akernative because of the inconveniences, especially in the introduction phase of this new product. Recommendations how to overcome customers concerns and implement a new strategy to attain increase in sales and continue sustainable development in China are proposed. In the traditional auto area, BYD can always follow the leading companies in their market approach, but as the new leader in the new Chinese electric car market, BYD will need to define and explore the market on its own. The next five years will provide observers with more accurate trends and success or failure factors.
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