How to Cross the Chasm for the Electric Vehicle World’s Laggards—A Case Study in Kuwait

Abstract

Ever since the discovery of oil in 1938, the State of Kuwait has increasingly sought out international brands in the car market due to the high purchasing power of Kuwaiti nationals. However, the makers of electric vehicles (EVs) have not been able to penetrate this market, with the exception of innovators and early adopters. The phenomenon in disruptive innovation theory—called “Crossing the Chasm”—regarding a mass market appeal has not yet occurred in Kuwait. Through deep interviews with 12 Kuwaiti owners of EVs and automotive dealers who sold either EVs or Hybrid Electric Vehicles (HEVs), 10 key reasons for this phenomenon have been previously revealed, which were used to develop an extensive questionnaire. A total of 472 car drivers aged from 18 to 30, identified as the “early majority”, completed the questionnaire to achieve the objective of identifying the factors required to create a mass market for EVs in Kuwait. The results demonstrated that potential customers highly preferred three different types of attributes of EVs: environmental, financial, and technological. There were significant differences in the identified attributes preferred by Kuwaiti individuals for EVs in terms of the number of cars owned and the sector of employment. Moreover, the results of our study indicate that potential customers are very willing to buy EVs in the future, considering both their financial and infrastructure attributes. There were further significant differences in the identified necessary conditions to buy EVs in terms of educational level and monthly income. This study discusses a variety of valuable promotional tactics, which may be implemented in conjunction with public incentives and policy changes in the State of Kuwait. This information is considered useful for marketers and designers who wish to tap into this lucrative market, which is significantly different from that in the global North.

Keywords

• electric vehicles
• disruptive innovation
• customer preferences
• emerging market
• Kuwait
• EV infrastructure