Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability

Electric vehicles (EVs) have garnered significant attention in recent years due to their crucial role in mitigating carbon emissions and addressing urban air pollution. Despite their growing adoption, the development of the EV market faces several challenges, including insufficient charging infrastr...

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Main Authors: Anggi Febrianto, Mokh. Suef, Muhammad Saiful Hakim, Debbie Kemala Sari
Format: Article
Language:English
Published: Elsevier 2025-05-01
Series:Transportation Research Interdisciplinary Perspectives
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590198225001484
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author Anggi Febrianto
Mokh. Suef
Muhammad Saiful Hakim
Debbie Kemala Sari
author_facet Anggi Febrianto
Mokh. Suef
Muhammad Saiful Hakim
Debbie Kemala Sari
author_sort Anggi Febrianto
collection DOAJ
description Electric vehicles (EVs) have garnered significant attention in recent years due to their crucial role in mitigating carbon emissions and addressing urban air pollution. Despite their growing adoption, the development of the EV market faces several challenges, including insufficient charging infrastructure and high initial costs, which continue to impede the growth of electric vehicle businesses. This study aims to identify the key success factors for electric vehicle businesses from the perspectives of both customers and entrepreneurs. A survey methodology was employed, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that, from the customer perspective, all factors—technology, management, economics, environment, marketing, and sales—exert a significant influence on business success, with technology being the most dominant factor. Conversely, from the entrepreneur’s perspective, environmental factors were found to be insignificant, whereas technology, economics, and marketing emerged as strong determinants. The implications of this study underscore the critical importance of technological innovation, effective management, strategic marketing, and environmental consciousness for achieving success in the electric vehicle business in Indonesia. It is expected that strategies incorporating these elements will contribute to sustained success in a competitive and dynamic market.
format Article
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institution DOAJ
issn 2590-1982
language English
publishDate 2025-05-01
publisher Elsevier
record_format Article
series Transportation Research Interdisciplinary Perspectives
spelling doaj-art-6cd39637d94b454c87f5097e40569ba22025-08-20T03:22:58ZengElsevierTransportation Research Interdisciplinary Perspectives2590-19822025-05-013110146910.1016/j.trip.2025.101469Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainabilityAnggi Febrianto0Mokh. Suef1Muhammad Saiful Hakim2Debbie Kemala Sari3Management Technology, Institut Teknologi Sepuluh Nopember, Indonesia; Corresponding author.Industrial Engineering, Institut Teknologi Sepuluh Nopember, IndonesiaBusiness Management, Institut Teknologi Sepuluh Nopember, IndonesiaIndustrial Engineering, Universitas Trisakti, IndonesiaElectric vehicles (EVs) have garnered significant attention in recent years due to their crucial role in mitigating carbon emissions and addressing urban air pollution. Despite their growing adoption, the development of the EV market faces several challenges, including insufficient charging infrastructure and high initial costs, which continue to impede the growth of electric vehicle businesses. This study aims to identify the key success factors for electric vehicle businesses from the perspectives of both customers and entrepreneurs. A survey methodology was employed, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that, from the customer perspective, all factors—technology, management, economics, environment, marketing, and sales—exert a significant influence on business success, with technology being the most dominant factor. Conversely, from the entrepreneur’s perspective, environmental factors were found to be insignificant, whereas technology, economics, and marketing emerged as strong determinants. The implications of this study underscore the critical importance of technological innovation, effective management, strategic marketing, and environmental consciousness for achieving success in the electric vehicle business in Indonesia. It is expected that strategies incorporating these elements will contribute to sustained success in a competitive and dynamic market.http://www.sciencedirect.com/science/article/pii/S2590198225001484Technology adoptionElectric vehicle businessSustainabilityInnovation managementPLS-SEM
spellingShingle Anggi Febrianto
Mokh. Suef
Muhammad Saiful Hakim
Debbie Kemala Sari
Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
Transportation Research Interdisciplinary Perspectives
Technology adoption
Electric vehicle business
Sustainability
Innovation management
PLS-SEM
title Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
title_full Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
title_fullStr Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
title_full_unstemmed Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
title_short Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability
title_sort key factors for electric vehicle business in indonesia challenges opportunities and sustainability
topic Technology adoption
Electric vehicle business
Sustainability
Innovation management
PLS-SEM
url http://www.sciencedirect.com/science/article/pii/S2590198225001484
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