Abstract:
The concern about green transportation has been increasing globally due to several environmental issues
caused by the transport sector. Moreover, there has been a rapid increase in car usage in private
transportation. This research was designed to examine consumer perceptions towards green cars. The general objective of the research was indentifying factors that affect consumers' purchasing
of green cars. The study adopted the Exploratory Factor Analysis (EFA) for analysing the variables
identified through a literature review. The study found that salient features of a car, such as ecofriendliness,
performance and the outlook of the car, influence the consumer perceptions regarding
purchasing a green car. Moreover, the study discovered that the salient features of a car which include
conventional factors like power, price, efficiency, design, comfort, and fuel economy are the prominent
factors that affect consumers in purchasing a green car. The impact of these salient features that shape consumers' perception of purchasing a green car is highly significant as it explains 35% of the total
variance of the model. Though eco-friendliness is the component which explains the second highest
variance from the total variance, the study found that the impact of eco-friendly features towards
purchasing green cars is comparatively low. The study indicates that the level of awareness about green
transportation and environmental concern among Sri Lankan consumers is low. Therefore, educating the
public about the necessity of moving towards green transportation is essential. The variables included in
salient features should be considered in taking initiatives to promote green cars among Sri Lankans.
Strategies such as tax concessions on electric and hybrid vehicles which can make an impact on the price
of green cars, and implementation of smart charging systems should be introduced to attract consumers
towards purchasing green cars.