CUSTOMER PREFERENCE ANALYSIS ON ATTRIBUTES OF HYBRID ELECTRIC VEHICLE: A CHOICE-BASED CONJOINT APPROACH

• Main Author: Vinstein Silaen, Randy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71204
• Institution: Institut Teknologi Bandung

Adoption of electric vehicles (EV) and the development of supporting infrastructure is one of the primary government measures to eliminate this dependency on internal combustion engines (ICE) and substantially reduce carbon dioxide (CO2) emissions from the transportation sector. EV will lessen the nation's reliance on imported crude oil, improve the trade balance and national energy security, and reduce the cost of fossil fuel subsidies to the state budget. In accordance with Presidential Regulation No. 55 of 2019 addressing the acceleration of the Battery-Based Electric Motor Vehicle (KBLBB) program for highway mobility, the Indonesian Ministry of Industry has set a 20% target for the use of electric battery-powered vehicles by 2025. In addition to providing incentives and charging infrastructure for electric vehicles, the KBLBB program also regulates electricity rates, technical requirements, and ultimately environmental preservation. The government hopes the growth of the environmentally friendly automotive industry in this area would support the carbon emission reduction target. Thus, the transportation industry may lead a transition by developing electric vehicles and a green ecosystem. Toyota Indonesia is committed to assisting the government's target of more effective CO2 emission reduction through a multi-pathway strategy involving automotive technology and electrification. As stated in the Toyota Environmental Challenge regarding zero CO2 emissions in future new vehicles, Toyota Indonesia continues to offer a variety of electrified vehicles, including Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), and Battery Electric Vehicle (BEV), on the Indonesian market. According to The Association of Indonesia Automotive Industries (GAIKINDO), Toyota dominates the Indonesian automotive industry, accounting for 31% of national auto sales. However, Toyota's electric vehicle sales in the country remain relatively modest, reaching approximately 6,600 units since the introduction of Toyota electric vehicles in Indonesia. This contribution of Toyota's domestic sales to the EV industry is still far below the government's target of 20% electrification by 2025, which would require around 400,000 units to be sold domestically by all auto makers. Hybrid electric vehicle (HEV) combine an internal combustion engine (ICE) with electric motors (EV), automatically selecting the appropriate power source and integrate. This mode combines the advantages of a zero-emission electric motor and a fuel-efficient conventional engine in anticipation of the limited infrastructure for charging electric car batteries. HEVs are more capable in a variety of scenarios and road conditions because they do not rely on battery capacity. Furthermore, HEVs are easy to operate and have moderate operating costs. Among all forms of electric vehicles (EVs) in Indonesia, the Battery Electric Vehicle (BEV) is the only one to have received the most favorable policy incentives from the government. Currently, HEVs have less advantages than other electric vehicles. Why not provide the same benefits to HEVs if the end objective is to reduce national emissions? Given HEVs are the more affordable and earliest form of electric vehicles. Moreover, unlike BEVs, HEVs do not necessitate infrastructure. Therefore, increasing the circulation of EVs in Indonesia may be aided by a more favorable HEV policy. Overall, the purpose of this research is to analyze customer preferences about HEVs. For the success of the vehicle electrification program, we must consider starting from the customer point of view, in which the vehicle experience of the customer becomes the key factor. When a customer decides to utilize an electric vehicle, what attributes will influence their decision? Additionally, it is necessary to determine whether the existing government program to encourage the circulation of electric vehicles in Indonesia is effective or not. This research will concentrate on understanding customer preference issues necessary for future strategies. Using a conjoint analysis approach, the objective of this study was to determine the most preferred combination of HEV attributes. This research assessed whether a variety of attributes, such as vehicle (1) pricing, (2) driving range, (3) fuel consumption level, (4) emission level, and (5) HEV policies, had the most influence on purchasing decisions. A conjoint analysis and a choice-based survey design were utilized to determine respondents' preferences for HEV. The results revealed that price was the attribute that influenced respondents' purchase decisions the most (40%), followed by policy (22%), emission (16%), consumption (14%), and driving range (9%) being the least preferred. To promote the adoption of electric vehicles in Indonesia, it is vital to examine customer preference and the sufficiency of government incentives. Therefore, Toyota Indonesia must conduct a thorough analysis and develop an appropriate action plan to produce an electric vehicle that meets customer preferences, and to ensure that the company can contribute more to the Indonesian government's 20% electrified vehicle by 2025 target.