Optimization of Financial Management for Enhancing the Electric Vehicle Market in Medan, Indonesia

Abstract

The global shift towards sustainable transportation, exemplified by the increasing adoption of Electric Vehicles (EVs), represents a vital response to contemporary environmental and energy challenges. This study investigates the determinants of consumers’ Desire to Purchase EVs within the unique context of the Medan market, where consumer preferences and market dynamics differ from more globally examined settings. Additionally, it explores the mediating roles of Consumer Awareness Campaigns and Local Industry Partnerships in shaping purchase intent. Through a comprehensive survey of 832 respondents in Medan, Indonesia, the study reveals crucial insights. Government incentives, including tax breaks and rebates, emerge as influential factors, significantly increasing consumers’ inclination to adopt EVs. Equally vital is the accessibility and availability of charging infrastructure, which is pivotal in bolstering consumer confidence in EVs. Consumer perceptions and attitudes have a significant bearing on purchase intent, with positive perceptions regarding environmental benefits, cost savings, and driving experiences contributing to the heightened desire for EV ownership. Effective financial management strategies also play a positive role, emphasizing the significance of sound financial planning and resource allocation. Further-more, this research emphasizes the instrumental role of Consumer Awareness Campaigns in shaping purchase intent. These campaigns are a powerful tool for elucidating the multifaceted advantages of EV ownership, encompassing environmental consciousness, economic feasibility, and enhanced driving experiences. Local Industry Partnerships within the Medan EV market equally contribute to heightened purchase intent, reflecting the synergistic effects of collaborative initiatives.