UNDERSTANDING CONSUMERS INTENTION TO PURCHASE GREEN VEHICLE: A LITERATURE REVIEW

Global warming is one of the main issues discuss by nations leaders. It is a crucial problem that needs to be address immediately. One of the solutions to global warming is green vehicles. Hybrids and electric vehicles are not new products in the automobile market. Unfortunately, the sales percentage for both types of green vehicles are still behind the petrol engine vehicles. Regardless of the world leaders’ dream to fill the street with green vehicles by 2035 in developed countries, the dream is still far from reality. As for developing countries, the people are more familiar with hybrid vehicles compare to electric vehicles. Other than that, the consumer perceptions regarding green vehicles are not all in positive aspect. Green vehicles are more associated as luxury goods in consumer perspective. There are also critics on the reliability and durability of the green vehicles as consumers find trouble to believe that green vehicles could compete with petrol engine vehicles. This paper identifies factors that could influence consumer to purchase green vehicles. Thus, providing a better insight in promoting green vehicles to consumers.