Investigating powertrain preferences in car purchase decisions in Germany

Abstract

By 2030, Germany aims to halve its transport sector’s greenhouse gas emissions and increase the number of battery electric vehicles to 15 million. Data on factors influencing the purchase of low- or zero-emission vehicles is still scarce. To uncover the factors driving car purchase decisions, we conducted a stated preference survey in spring 2022 and estimated an error component model. Battery electric vehicles are the preferred choice of respondents in the hypothetical situation of buying a new car, but this does not extend to the used market. Our findings indicate a substantial demand for battery electric vehicles; however, high prices and supply bottlenecks could hinder their rapid expansion. The findings show that price is the main factor in choosing an electric powertrain, both in terms of purchase price and energy costs. This confirms that Germany’s current policy of reducing purchase prices for battery electric vehicles is highly effective.