Key factors for electric vehicle business in Indonesia: Challenges, opportunities and sustainability

Electric vehicles (EVs) have garnered significant attention in recent years due to their crucial role in mitigating carbon emissions and addressing urban air pollution. Despite their growing adoption, the development of the EV market faces several challenges, including insufficient charging infrastructure and high initial costs, which continue to impede the growth of electric vehicle businesses. This study aims to identify the key success factors for electric vehicle businesses from the perspectives of both customers and entrepreneurs. A survey methodology was employed, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that, from the customer perspective, all factors—technology, management, economics, environment, marketing, and sales—exert a significant influence on business success, with technology being the most dominant factor. Conversely, from the entrepreneur's perspective, environmental factors were found to be insignificant, whereas technology, economics, and marketing emerged as strong determinants. The implications of this study underscore the critical importance of technological innovation, effective management, strategic marketing, and environmental consciousness for achieving success in the electric vehicle business in Indonesia. It is expected that strategies incorporating these elements will contribute to sustained success in a competitive and dynamic market.