Key considerations for driving electric vehicle (EV) adoption involve various critical factors that consumers must take into account. One of these is the consideration point, which occurs when consumers begin to contemplate switching to EVs in their vehicle purchasing decisions. While market penetration may initially be low, with the increasing launch of products, comparable performance to internal combustion engine (ICE) vehicles, and a balance in total cost of ownership (TCO), the percentage of consumers considering EVs continues to rise.
Another crucial factor driving adoption is the inflection point. This point is reached when various aspects related to EVs such as performance, battery technology, and supporting ecosystems become established. The market then begins to show significant interest in electric vehicles.
One primary parameter in EV consideration is performance comparable to ICE vehicles. Consumers are unwilling to compromise on vehicle performance when transitioning to EVs. Additionally, total cost of ownership (TCO) is also a major consideration. With competitive ownership costs compared to conventional vehicles, consumers are more motivated to choose EVs.
In addition to performance and cost, upfront price and charging time are also significant considerations for consumers. An acceptable upfront price and reasonable charging time make EVs a more attractive option.
Meanwhile, to reach the inflection point, several crucial factors must be met. One of these is the availability of adequate financing for EV purchases. Furthermore, reliability of battery technology, reduction in battery prices, and the development of service networks and established charging infrastructures are also determining factors in reaching this inflection point.
With these parameters fulfilled, EV adoption in Indonesia can rapidly expand. This is not just about adopting environmentally friendly technology but also about creating a supportive ecosystem to drive the transformation towards more sustainable mobility.
Source: KPMG Indonesia
