The Mediating Effect of Buyers’ Confidence Attitude on the Relationship Between Buyers’ Perception of Product Cost-Benefit, Product Compatibility, and Government Tax and Subsidies Towards Sustainable Adoption of Electric Vehicles in Malaysia

Abstract

The electric vehicle industry in Malaysia constitutes approximately 80% of total industry output, reflecting its growing significance as the country moves toward achieving carbon neutrality by 2050. This paper investigates buyers’ adoption of the electric vehicle industry in Malaysia by examining the perception of product cost-benefit, product compatibility, government tax policies and incentives by incorporating the buyers’ confidence attitude as a mediator. A quantitative cross-sectional approach was applied using data gathered from survey questionnaires from employed Malaysians aged 21 and above, with a minimum sample size of 384 respondents. Data analysis was conducted using Structural Equation Modeling (SEM)-AMOS, to validate the constructs. The study is expected to show the mediating effect of buyers’ confidence attitude between factors influence buyers’ adoption on electric vehicle in Malaysia. Grounded in Diffusion of Innovation theory, the findings offer practical insights for policymakers and industry stakeholders to enhance electric vehicle adoption and industry long-term sustainability.