Consumer's Behavioural Intention Towards Adoption of E-Bike in Kathmandu Valley: Structural Equation Modelling Analysis

As societies awareness of environmental issues increases, people’s inclination towards electric vehicles (EV) is increasing. EV is considered an adaption technology to reduce greenhouse gas emissions from the personal transportation sector. The government of Nepal plans to speed up the use of EVs, to reduce the reliance upon imported fossil fuels, Nepal has a high potential for renewable energy such as hydroelectricity, photovoltaics, and wind energy. These renewable sources could be more than adequate to meet the demand for EVs in country and for export. In this context, this study examines consumer behavioural towards adopting e-bikes in Kathmandu valley. This study adopted explanatory research to examine the variables that influence consumer's adoption of e-bikes. The study captured data from 385 cycle users from Kathmandu valley using a structural questionnaire. Both descriptive and inferential statistics were analysed via structural equation modelling using SPSS and SPSS-AMOS. The result indicates that all bike users (99.84%) in the valley are aware of electric bikes, and half of the respondents (53.76%) prefer to adopt e-bikes. Other users are ready to adopt e-bikes if government formulates attractive policies regarding e-vehicles, also if infrastructural facilities are provided electric vehicles. The majority of the respondents (79%) revealed that the lack of charging infrastructure and stations is the major barrier to e-bike adoption. Surprisingly, this study observed that respondents are not ready to adapt e-bikes though they are well known about the positive impacts of the e-bikes. To enhance adoption of e-bike, increasing awareness regarding e-bike technology, improving government policies and plans. The affordability of e-bikes being 300% more costly together with weak marketing and infrastructure development. There are currently no e-bike manufacturers in Nepal, and their adoption could establish a valuable market sector. In addition, this new global sector offers opportunities for Nepal to engage in a circular component supply or recovery chain, focusing on product innovation.