ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 356

www.rsisinternational.org

Exploring the Socio-Economic Impact of Electric Vehicle Innovation

Mohd Hakim Bin Abdul Hamid

, Fauzan Sholeh

, Isma Addi Jumbri

, Rita Indah Mustikowati

Supami Wahyu Setiyowati

, Ati Retna Sari

1,2,3

Fakulti Pengurusan Teknologi dan Teknousahawan (FPTT), UNIVERSITI TEKNIKAL

MALAYSIA MELAKA

4,5,6

Faculty Economics and Business, Universitas PGRI Kanjuruhan Malang, Malang, Indonesia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.92800035

Received: 08 November 2025; Accepted: 14 November 2025; Published: 19 December 2025

ABSTRACT

This study examines the factors influencing electric vehicle (EV) innovation in Malacca, with a focus on the

relationships between social impact, economic impact, and government policy. Using a quantitative research

approach, data were collected through surveys and analyzed using multiple regression techniques. The findings

reveal that social impact, driven by public awareness and inclusivity, has the most substantial positive influence

on EV innovation. Economic impact, while significant, presents challenges due to high upfront costs and limited

infrastructure. Government policy, including tax incentives, subsidies, and investments in infrastructure, also

plays a crucial role in fostering EV adoption and technological advancements. The study emphasizes the

importance of an integrated approach that involves policymakers, industry stakeholders, and society to address

barriers and promote sustainable transportation solutions. This research contributes valuable insights into EV

innovation, providing a foundation for future studies and practical recommendations for accelerating EV

adoption in Malaysia.

Keywords: Socio-economic, Electric vehicle innovation

INTRODUCTION

There are several reasons why electric vehicles (EVs) are gaining popularity, including their lower cost and

increased awareness of environmental issues and climate change. The automotive sector has become one of the

most significant global industries in terms of research and development (R&D) spending and economic impact.

To enhance the safety of both passengers and pedestrians, more advanced technology components are being

integrated into cars. Furthermore, there are more cars on the road, which enables us to travel quickly and

comfortably. However, as a result, air pollution levels in metropolitan areas, including pollutants such as

particulate matter (PM), nitrogen oxides (NOX), carbon dioxide (CO2), and sulphur dioxide (SO2), have

dramatically increased. (Sanguesa et al., 2021).

Because they require fewer moving parts, electric vehicles are less expensive to operate and have a lower

environmental impact, as they consume little to no fossil fuels (such as diesel or petrol). Although some electric

cars (EVs) employ lead-acid or nickel-metal-hydride batteries, lithium-ion batteries are now considered the

industry standard for battery electric vehicles due to their longer lifespan, excellent energy retention, and a self-

discharge rate of only 5% per month. Although attempts have been made to improve the safety of these batteries,

problems persist, despite their increased efficiency. One such issue is that they are susceptible to thermal

runaway, which has resulted in explosions or fires in Tesla Model S vehicles, among other incidents (TWI,

2023).

To reduce the concentration of air pollutants, such as CO2 and other greenhouse gases, the governments of most

developed nations are promoting the use of electric vehicles, or EVs. More precisely, they encourage efficient

and sustainable mobility through a variety of programs, primarily through tax breaks, buying subsidies, or other

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 357

www.rsisinternational.org

unique policies, such as free parking in public spaces or unrestricted access to highways. Compared to

conventional cars, EVs have the following benefits: Zero emissions: These cars don't release any nitrogen

dioxide (NO2) or carbon dioxide (CO2) from their exhaust. Although the production of batteries hurts carbon

footprint, the manufacturing techniques also tend to be more environmentally friendly.

Next, because of the simplicity. Electric vehicles (EVs) have fewer engine components, resulting in significantly

lower maintenance costs. The engines are smaller and more straightforward; they also don't require a cooling

circuit, a gearbox, or any other components to lessen engine noise. Reliability: These cars are less likely to break

down since they contain fewer, simpler parts. Furthermore, the natural wear and tear brought on by vibrations,

gasoline corrosion, and engine explosions does not affect electric vehicles. Cost: Compared to typical

combustion vehicles, the cost of electricity and vehicle maintenance is significantly lower for this type of vehicle.

EVs have a far lower energy cost per kilometre than conventional cars. Comfort: Since there are no engine noises

or vibrations when driving an EV, it is a more comfortable experience. Efficiency: Compared to traditional

vehicles, EVs are more efficient. The power plant efficiency will also impact the overall well-to-wheel (WTW)

efficiency. The range of gasoline-powered cars' total WTW efficiency is 11% to 27%. In comparison, EVs

power plants have a WTW efficiency that ranges from 13% to 31% (Sanguesa et al., 2021).

By comprehensively examining the socio-economic impact of EV innovation, this research aims to provide

valuable insights for policymakers, industry leaders, and the public. Ultimately, the goal is to foster informed

decision-making that accelerates the adoption of EVs in Malacca while mitigating potential drawbacks.

Although they require significant expenditures on the infrastructure necessary for charging, electric vehicles

have significant environmental advantages over conventional vehicles, helping to reduce reliance on fossil fuels.

Additionally, their market price is significantly higher than that of ordinary cars. Because the purchasing power

of emerging economies is substantially lower than that of industrialized economies, the conditions for market

penetration are typically more important in these regions. Moreover, other legislative and technological obstacles

impede market growth and penetration (Shatanawi et al., 2020)).

This research categorizes the various risks and challenges associated with EV integration into smart cities into

four groups: technical, economic, social, and environmental. This contrasts with most previous research, which

has concentrated on individual risk factors or challenges. Through a systematic framework of technological,

economic, social, and environmental difficulties, the article offers an organised approach to comprehending the

various facets of the integration process. Interoperability and standardization problems, as well as issues with

EV infrastructure such as charging stations and battery management systems, are among the technological

challenges. The financial difficulties stem from the infrastructure and deployment expenses of EVs, as well as

potential impacts on conventional transportation networks and sectors.

Concerns about user acceptability and behavioural change are among the social problems, along with the

necessity of addressing concerns about equity and accessibility. The potential effects of EVs on the electrical

grid and the need to manage the life cycle emissions associated with EV manufacture and disposal are the

primary environmental concerns. The study’s conclusion emphasizes the necessity of addressing the difficulties

of EV use from a holistic perspective in order to minimize its socioeconomic impact. Additionally, it suggests

future lines of inquiry for addressing these issues and advancing the effective incorporation of better EV usage

in the future. All things considered, this report provides valuable insights for scholars and policymakers seeking

to develop sustainable urban transport systems. (Apata et al., 2023).

LITERATURE REVIEW

Electric Vehicle

In automotive industry road maps, the electric vehicle (EV) is seen as a critical technology for the future of

automotive power systems. The EV has become a main goal for major global automakers and is likely to disrupt

the road transportation industry. In Malaysia, electric vehicles have just recently emerged as a significant

influence. However, Malaysia's lack of EV infrastructure, along with its heavy reliance on fossil fuels, presents

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 358

www.rsisinternational.org

a considerable hurdle (Veza et al., 2022). To maintain a friendly and long-term global climate, the worldwide

power industry is steadily transitioning from traditional nonrenewable to sustainable energy sources. Over the

last two centuries, the rising usage of fossil fuels has already taken its toll (Muzir et al., 2022). Replacing

traditional internal combustion engines (ICE) with electric battery-powered vehicles (EVs) is driving more and

more countries throughout the world to reduce greenhouse gas (GHG) emissions from the transportation industry

(Maennel & Kim, 2018). Officials in Malaysia have set a target of 500,000 electric vehicles by the year 2015

and five million by 2020 (Adnan et al., 2017).

Social Impact

The issue of carbon emissions has gained global significance in the contemporary global economy. The

transportation industry has grown significantly, which is mostly to blame for this. Millions of gasoline-powered

cars drive on the highway day and night, emitting carbon emissions. Using green technology automobiles instead

of gasoline-powered ones is one way to thwart these vulnerabilities and advance a more sustainable economy.

Economy Impact

Here in the HICOM Pegoh Industrial Park, a production factory for electric and energy-efficient vehicles (EEVs)

and EVs with a combined investment value of over RM100 million is planned. According to Melaka Chief

Minister Datuk Seri Ab Rauf Yusoh, the EP Manufacturing Bhd (EPMB) factory is anticipated to produce up to

30,000 EEVs and EVs annually during the first phase following the plant's completion at the end of the following

year. He stated that Melaka residents, particularly those residing in the Pegoh area, will have access to

approximately 1,000 new job opportunities in the automotive sector, thereby contributing to the state's economic

growth and future efforts to reduce carbon dioxide emissions. (The Sun, 2023).

Government Policy

Due to these CO2 emissions, the Malaysian government also faced significant issues. since Malaysia is regarded

as a prominent country with high energy efficiency. The primary approach is to transition from petroleum-based

vehicles to green vehicle innovation in order to mitigate these vulnerabilities and support a more sustainable

economy (Adnan et al., 2017). The transition to a circular economy can be facilitated by government measures,

including carbon taxes, incentives for zero-carbon sectors, and mitigation and adaptation plans (Chen et al.,

2022). Regarding Malaysia, the government committed to reducing its carbon emissions by up to 40% by 2020,

compared to 2005 levels, at the United Nations Climate Change Conference (UNFCCC) in Copenhagen in 2009.

Hypothesis Development

Relationship between social impact and Electric Vehicle

The increasing environmental consciousness of Malaysians has been a significant factor in the country's adoption

of electric automobiles. Through our regular market research in Malaysia, we have observed that people there

are becoming increasingly aware of the need to reduce their carbon footprint and emissions, and that owning an

electric vehicle (EV) is one effective way to achieve this. Government programs that increase the appeal of

electric cars to consumers, such as tax breaks, subsidies, and other incentives, exacerbate this. Our survey

indicates that 85.4% of Malaysians believe their activities will have a significant impact on whether the earth is

improved or destroyed. (Standard Insight, 2023).

Generally, transitioning to electric vehicles is a smart way to mitigate global warming. In fact, we could reduce

global emissions by about one-fifth if all automobiles were electric. But the advantages of growing the electric

industry go beyond this: in addition to having cleaner air, we would have quieter cities and be less reliant on oil

price spikes caused by conflicts. However, it goes beyond automobiles. The electrification of bikes, scooters,

buses, goods trains, tractors, and heavy vehicles is accelerating at a rate never seen before in the history of

transport, resulting in a quiet revolution in industry. The industry's innovation, combined with the decline in the

cost of clean energy, solar energy is now the least expensive source of electricity we have is resulting in lower

production costs for EV batteries and, consequently, lower purchase prices.a (Igini, 2023).

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 359

www.rsisinternational.org

Comparing EVs to conventional fuel-powered cars, they are also far more efficient. Compared to a regular fuel

engine, which loses 64% to 75% of its energy, an electric drive system in an electric vehicle only loses 15% to

20% of its energy. These convincing arguments make electric cars an enticing and environmentally friendly

option. EVs provide a cleaner alternative and are a significant step towards sustainable mobility. The following

six main environmental advantages of electric vehicles are firstly zero tailpipe emissions. The ability of electric

cars to emit no pollutants from their tailpipes is well recognised. EVs run without a tailpipe, in contrast to

conventional Internal Combustion Engines (ICE), which burn petrol or diesel and release toxic carbon pollutants

through exhaust. An electric vehicle's battery is its vital component. The majority of EVs are equipped with

lithium-ion batteries, which produce no emissions during charging or discharging. Thanks to this technology, it

is possible to repeatedly charge and discharge the battery without causing pollution in the air (Shirami, 2024).

Next is to minimise resource depletion. Compared to regular automobiles, electric vehicles require fewer

resources during production, giving them a significant environmental advantage. This resource economy can be

attributed to EVs' simpler mechanics than those of petrol or diesel vehicles. Moreover, recycling the batteries in

electric vehicles (EVs) reduces waste production and the need for new resources. The environmental effects of

intensive mining and the depletion of non-renewable resources can be significantly reduced by promoting a

higher adoption rate of electric vehicles (EVs). The third benefit is the reduction of less harmful fluids. Since

motor oil and other fossil fuel-based goods are not used in electric vehicles, they provide a substantial

environmental benefit over petrol and diesel vehicles. EVs don't require a variety of lubricants and fluids that

can be hazardous to the environment, unlike ICE cars. Motor oil, which is often found in petrol or diesel cars

but is absent from electric vehicles, includes harmful substances that can poison water supplies and endanger

people and wildlife. Because of their focus on utilising fewer hazardous fluids, EVs are a more environmentally

responsible option (Shirami, 2024).

Moreover, the benefit is to reduce noise pollution. Because electric motors run much more quietly than

combustion engines, electric vehicles can significantly contribute to reducing noise pollution. Beyond merely

urban areas, electric vehicles play a significant role in reducing noise pollution. The quality of life is enhanced

in various settings, including residential neighborhoods and undeveloped areas, as a result of reduced noise

levels. EV adoption is crucial for fostering calmer, more serene environments as cities expand and their

populations rise. Also, EV is using eco-friendly material. The use of environmentally friendly components and

the operating benefits of electric vehicles are what make them so important. EV manufacturers set the standard

by incorporating recycled materials into the structure of their vehicles, even if many manufacturers use them in

smaller components. The transition to environmentally friendly materials not only minimises the impact on the

environment during manufacturing and use, but it also reduces weight. Preserving the environment requires

substituting unsustainable resources, such as metals and plastics, with natural or recycled ones (Shirami, 2024).

Lastly, the benefit is to increase the number of clean EV batteries. The technology of electric vehicles continues

to make remarkable strides in reducing the carbon footprint associated with their batteries. The carbon trace of

EV batteries has dramatically dropped in the last few years. It is currently two to three times lower than it was

earlier. Should you still be wondering, "Why an electric vehicle?" Then there's a strong case to be made for

switching to cleaner EV batteries, given the existing trend in this direction. EV makers have tightened standards

for their battery suppliers due to growing consciousness and the urgent need for sustainability. These regulations

require that during the production process, only renewable energy sources be used (Shirami, 2024).

Hypothesis 1: There is a relationship between social impact and Electric Vehicle Innovation

Relationship between the economic impact and the Electric Vehicle

Electric vehicles (EVs) are well recognised for their benefits to the environment. On the other hand, their

economic story is similarly optimistic. Every EV will save thousands of dollars in benefits over its lifetime for

utility consumers, in-state power generators, EV charging providers, and the driver (or fleet owner). There are

three main benefits of using EVs for the economy. Firstly, fuel-cost reduction. The average light-duty vehicle,

such as a car or pickup truck, is predicted by the Union of Concerned Scientists to require $22,674 in petrol over

the course of its 14-year lifespan. The comparable amount for EVs is $12,132, or a 54 percent savings, based on

national average electricity rates (The Untold Story of the Economic Benefits of Electric Vehicles, n.d.). In

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 360

www.rsisinternational.org

Malaysia, because many T20 households already own luxury EVs that are now on the market and because they

generally reside in landed homes where EVs can be charged at home, they are well-positioned to make the switch

to EVs. Since Tenaga Nasional Berhad (TNB) estimates that the fuel cost of using EVs is 11.4% – 51% lower

than using internal combustion (ICE) engine cars, the removal of the fuel subsidies will force them to consider

utilizing EVs (Trade, 2023).

Approximately 710,000 people are employed in Malaysia's automotive industry, which also accounts for 4% of

the nation's GDP, underscoring the industry's significance to the country's manufacturing sector. The electric

vehicle (EV) industry is poised for growth, despite still being in its infancy. Numerous businesses that increase

the production of EVs by supplying the necessary inputs, like semiconductors and copper wire fabrication,

already have operations in Malaysia (Standard Insight, 2023).

According to Statista, the electric car market in Malaysia is expected to experience growth, with revenue

estimated to reach US$115.30 million in 2023 and a compound annual growth rate (CAGR) of 24.15% by 2027,

resulting in a projected market volume of US$273.90 million. By 2027, sales of electric vehicles are predicted

to rise from 1,472 in 2019 to 5,674.7 units. From an international standpoint, China's electric car market is

expected to account for the majority of revenue, with estimates for 2023 totaling over US$ 190 billion. With

such a large projected market and room for expansion, Malaysia's automotive electric vehicle industry seems

promising both domestically and internationally (Standard Insight, 2023).

Hypothesis 2: There is a relationship between economic impact and Electric Vehicle innovation

Relationship between Government Policy and Electric Vehicle

Through financial aid and other incentives, such as tax cuts and subsidies, the Malaysian government has been

aggressively promoting electric vehicles on the country's roads. By doing this, the nation aims to reduce its

reliance on petroleum and oil, which together supply around two-thirds of its energy needs. Due to cheaper

renewable energy sources, increased efficiency, improved technology, and declining battery costs, the cost of

electric vehicles is also becoming more competitive in Malaysia. As a result, in certain regions of Malaysia, the

cost of electric vehicles is currently less than that of conventional cars. Additionally, users might save money

over time on gasoline and maintenance expenditures due to the lower operating costs of electric vehicles

(Standard Insight, 2023).

Deputy Finance Minister Ahmad Maslan hinted that the government would introduce targeted fuel subsidies to

curb the government's skyrocketing spending during Malaysia's Budget 2023 parliamentary debate. According

to reports, the fuel subsidy cost alone in 2022 totaled RM28 billion, accounting for 7% of the government's total

spending. First, there must be a significant increase in EV charging stations by the government. Currently,

chargEV and Carput Zap are two EV charge station operators (CPO) that offer fast or slow charging options.

The government acknowledges that there are still not enough charging stations to support widespread EV

adoption. The government will designate Gentari, a renewable energy solutions division of the national oil

corporation Petronas, to install up to 500 public EV chargers as part of Budget 2023. Gentari was founded to

assist Petronas in advancing hydrogen, renewable energy, and environmentally friendly transportation options.

Installing EV charging stations in 70 designated areas is another duty assigned to TNB, a government-affiliated

energy firm. When Tesla joins the Malaysian market, a supercharger network is anticipated to be established

(Trade, 2023).

Malaysia's market for electric vehicles (EVs) is still modest but expanding quickly. The number of electric

vehicles sold in 2021 was 2,717, as reported by the Malaysian Automotive Association (MAA), a notable rise

from the 1,642 units sold in 2020. With just 0.4% of all vehicle sales in Malaysia, the EV market share is

currently quite small. Nonetheless, the industry is anticipated to expand in the upcoming years due to the

government's objective of having 125,000 EVs on the road by 2030. The Battery Electric Vehicle Global Leaders

Initiative (BEV GLI) was launched by Malaysia's Ministry of Investment, Trade, and Industry (MITI) to

encourage the expansion of the EV industry in the nation. The BEV program lowers the cost of imported vehicles

by enabling international companies to sell automobiles in Malaysia without adhering to the Approved Permit

(AP) regulations. The goal of this project is to foster the growth of an ecosystem that supports the adoption of

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 361

www.rsisinternational.org

BEVs and increases demand for EVs in the local market. By 2025, the government plans to install 10,000

charging stations as part of the Low Carbon Mobility Blueprint. Businesses that invest in Malaysian EV

infrastructure development will receive tax reductions and other government incentives. (Trade, 2023).

Expectations are high back home that if Proton and Perodua enter the EV manufacturing business, less expensive

EVs would soon rule the road and the auto industry's sales figures. The Proton subsidiary that sells the smart #1

EV, Proton New Technology Sdn Bhd (Pro-Net), claims that it is actively working to increase the accessibility

of BEVs through projects focused on affordability and expanding charging networks. Malaysians can expect

more reasonably priced BEVs in the future, reflecting the changing market conditions. Zhang Qiang, the chief

executive officer of Pro-Net, tells StarBizWeek that the current price tactics used by industry participants find a

compromise between affordability and essential elements, including appropriate range and automobile

characteristics, performance, and ecosystem support (Khoo, 2024).

At the end of the following month, the Melaka government plans to launch electric tourist buses to revive the

country's tourism sector, which has been negatively impacted by the COVID-19 outbreak. Starting from Melaka

Sentral, the buses will travel through nine or fourteen stations, which include the Taming Sari Tower, the Melaka

Zoo, and the UNESCO World Heritage Site located near Banda Hilir. Top-up cards with values between RM20

and RM30 will be used to make payments. The all-electric, environmentally friendly concept buses will include

air conditioning, wi-fi, and open areas for visitors. The government intends to expand the bus fleet if visitor

feedback is favorable (BloombergNEF, 2022).

Hypothesis 3: There is a relationship between government policy and Electric Vehicle innovation

Framework

This research will be using the Technological Diffusion Theory (TDT) because TDT offers a paradigm for

comprehending the social diffusion of EVs as an innovation. Relative advantage (benefits over current options),

compatibility (fit with existing infrastructure), simplicity (ease of use), observability (benefits that are visible),

and trialability (opportunity to explore) are some of the key aspects it considers. This theory will examine how

the adoption of EVs affects social norms and economic activity as it moves through several stages.

Figure 1: Conceptual Framework of the Study

Figure 1 illustrates the plan for this research and outlines the approach to solving the research problem's

objective. Using TDT, this study examines the ways in which different social and economic factors impact the

adoption of EVs. This can assist in identifying locations where actions (such as public awareness campaigns and

infrastructure development) can maximize the beneficial socio-economic effects of electric vehicles and speed

up their spread.

METHODOLOGY

The research methodology adopts a quantitative approach to examine the socio-economic impacts of electric

vehicle (EV) adoption in Malacca, Malaysia. Data collection integrates both primary and secondary sources.

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 362

www.rsisinternational.org

Primary data is gathered through structured questionnaires distributed via Google Forms to employees across

diverse industries, complemented by focus groups for deeper insights. Secondary data is sourced from

government databases on EV sales, charging infrastructure, and employment trends. The sampling design targets

employees as key respondents, as they are directly exposed to potential economic changes. Malacca was chosen

for its manageable population size and unique financial landscape. The questionnaire, divided into demographic,

independent (social, economic, and policy), and dependent (EV innovation) sections, is pilot-tested to ensure

clarity and reliability before being deployed on large-scale platforms such as WhatsApp, Telegram, and

Instagram. Descriptive statistics are initially applied to summarize key trends, followed by advanced analyses

using SPSS, including Pearson correlation to examine relationships between variables and Cronbach's Alpha to

assess reliability. This rigorous design ensures valid, reliable, and actionable findings, offering crucial insights

into workforce perceptions, government policies, and economic prospects related to EVs, thereby informing

policymakers, businesses, and stakeholders about opportunities and challenges in transitioning toward

sustainable mobility.

RESULTS

Multiple Regression Analysis

In this regression analysis, the independent variables selected for inclusion in the model were social impact

(TOTAL_SI), economic impact (TOTAL_EI), and government policy (TOTAL_GP). These variables were

chosen based on their theoretical relevance to the dependent variable, electric vehicle innovation (TOTAL_EVI).

The goal was to examine how these factors collectively influence EV innovation in Malacca. All of these

variables were entered into the model without any exclusions, allowing for a comprehensive evaluation of how

each factor contributes to predicting the level of innovation in electric vehicle adoption. The inclusion of these

variables reflects the key themes of the study, such as social acceptance, economic benefits, and supportive

governmental policies, which are expected to have direct implications on the pace and success of EV innovation.

Table 1. Variables Entered Analysis

Variables Entered/Removed

Model

Variables

Entered

Variables

Removed

Method

TOTAL_GP,

TOTAL_EI,

TOTAL_SI

Enter

a. Dependent Variable: TOTAL_EVI

b. All requested variables entered.

Model Summary Analysis

The model summary provides crucial information about the explanatory power of the regression model. The

adjusted R Square value is 0.934, which means that 93.4% of the variance in the dependent variable, electric

vehicle innovation (TOTAL_EVI), is explained by the independent variables in the model. This is a very high

level of explanatory power, indicating that the model is highly effective in predicting EV innovation. The R

Square value of 0.935 further supports this conclusion, suggesting that the independent variables (social impact,

economic impact, and government policy) are strong predictors of the dependent variable. The low standard

error of the estimate (1.67415) further reinforces the model's reliability, as it shows that the predicted values

closely align with the observed values.

Table 2. Model Summary Analysis

Model Summary

Model

R Square

Adjusted R Square

Std. Error of the Estimate

.967

.935

.934

1.67415

a. Predictors: (Constant), TOTAL_GP, TOTAL_EI, TOTAL_SI

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

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ANOVA Analysis

The ANOVA (Analysis of Variance) table tests the overall significance of the regression model. The F-statistic

value of 1626.776 is highly significant, with a p-value of less than 0.001, indicating that the model is statistically

significant and that the independent variables collectively have a significant impact on the dependent variable,

electric vehicle innovation. In other words, the likelihood that the observed relationship between the independent

variables and the dependent variable occurred by chance is extremely low. This confirms that the model as a

whole provides a meaningful explanation for the variation in EV innovation, and we can be confident in the

findings that follow.

Table 3. ANOVA Analysis

ANOVA

Model

Sum of

Squares

Mean

Square

Sig.

Regre

ssion

13678.406

4559.469

1626.776

<.001

Resid

ual

952.940

340

2.803

Total

14631.346

343

a. Dependent Variable: TOTAL_EVI

b. Predictors: (Constant), TOTAL_GP, TOTAL_EI, TOTAL_SI

Coefficient Analysis

The coefficients table reveals the individual contributions of each independent variable in predicting the

dependent variable, electric vehicle innovation (TOTAL_EVI). The social impact (TOTAL_SI) variable is the

most influential predictor, with a standardized beta coefficient of 0.891, indicating a strong positive effect on

EV innovation. The significance level (p < 0.001) further confirms the importance of social factors such as public

awareness and inclusivity in driving EV innovation. The economic impact (TOTAL_EI) exhibits a smaller

negative relationship with EV innovation (β = -0.226), with a statistically significant p-value of less than 0.001.

This suggests that, although economic factors like cost reduction and job creation are important, there may be

challenges in translating these benefits into immediate EV innovation. Lastly, government policy (TOTAL_GP)

has a positive impact on EV innovation (β = 0.243, p < 0.001), suggesting that supportive government policies,

such as tax incentives and infrastructure development, play a crucial role in fostering innovation. These findings

highlight the varying degrees of influence each factor has on the adoption of electric vehicles, with social impact

emerging as the most significant predictor.

Table 4. Coefficients Analysis

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

Sig.

Std. Error

Beta

(Constant)

1.422

.306

4.647

<.001

Social Impact (SI)

.893

.055

.891

16.215

<.001

Economic Impact (EI)

-.263

.025

-.226

-10.406

<.001

Government Policy (GP)

.263

.061

.243

4.285

<.001

a. Dependent Variable: TOTAL_EVI

DISCUSSION

Social Impact towards Electric Vehicle Innovation

The findings support Hypothesis 1 (H1), which posited a significant positive relationship between social impact

and electric vehicle (EV) innovation. The study results indicate that public awareness, social acceptance, and

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

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inclusivity are critical factors in driving EV innovation. The high Beta value (+0.891) and statistically significant

p-value (p < 0.001) confirm that increased societal awareness about environmental benefits and modernity

associated with EVs enhances their adoption and development.

For example, the reduced air and noise pollution from EVs aligns with public demand for cleaner urban spaces,

while the perception of EVs as advanced and eco-friendly technology fosters broader acceptance. Additionally,

societal trends toward inclusivity, such as the development of accessible and sustainable transportation systems

(e.g., electric buses), contribute to their innovation. These findings suggest that public engagement and social

factors not only influence the market demand for EVs but also encourage manufacturers and policymakers to

prioritize innovation in the sector. (BloombergNEF, 2022).

Economic Impact on Electric Vehicle Innovation

This section aligns with Hypothesis 2 (H2), which examined the relationship between economic impact and

EVinnovation. While a statistically significant relationship was found (p < 0.001), the negative Beta value (-

0.226) suggests that financial factors, such as the high upfront cost of EVs and infrastructure challenges, may

hinder innovation despite their potential economic benefits Lower operating costs and government subsidies

help make EVs more affordable over time, but the initial price barrier remains a challenge for many consumers.

Additionally, the lack of sufficient charging infrastructure can increase costs for manufacturers and limit

consumer confidence. On the positive side, the study highlights the potential for job creation in battery

production, EV manufacturing, and charging station installation, which can stimulate local economies. These

findings suggest that while economic impact is a significant driver of EV innovation, addressing affordability

and infrastructure barriers is crucial for maximizing its positive effects. (Mock & Yang, 2014).

Government policy towards Electric Vehicle Innovation

The findings support Hypothesis 3 (H3), which posited a positive relationship between government policy and

EV innovation. The results confirm that government interventions, such as subsidies, tax incentives, and

infrastructure investments, have a significant influence on the adoption and development of EV technologies

(Beta = +0.243, p < 0.001).

Tax incentives reduce the financial burden on EV buyers, while subsidies encourage manufacturers to innovate

and scale production. Investments in charging infrastructure alleviate range anxiety, a significant barrier to the

adoption of electric vehicles. In Malacca, such policies have proven effective in driving consumer interest and

encouraging technological advancements. Public awareness campaigns further amplify these efforts by

educating citizens on the environmental and economic benefits of EVs. These findings demonstrate that

government policies are a cornerstone of EV innovation, providing a supportive ecosystem for sustainable

transportation solutions. (BloombergNEF, 2022).

CONCLUSION

The findings of this research have significant implications for various stakeholders, including policymakers,

industry players, and society as a whole. For policymakers, the study underscores the importance of developing

supportive government policies, including subsidies, tax incentives, and infrastructure investments, to accelerate

the adoption and innovation of electric vehicles (EVs). These policies not only drive economic growth but also

align with broader environmental sustainability goals. For instance, governments can use the results to focus on

expanding public charging infrastructure and integrating renewable energy, which are crucial for fostering

confidence in the EV technology industry among players such as EV manufacturers and suppliers. The research

provides insights into the importance of addressing both social and economic factors. The data indicate that

consumer acceptance is strongly tied to public awareness and perception of EVs as modern, eco-friendly

solutions. Companies can leverage this by investing in marketing strategies and partnerships that emphasize the

environmental and financial benefits of EV ownership. Additionally, collaboration with governments to develop

innovative charging solutions and affordable EV models could further accelerate market penetration.

Launderscores the role of society in driving EV adoption. Public awareness campaigns and education initiatives

remain critical in fostering societal acceptance. By engaging communities and emphasizing the long-term

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

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benefits of EVs, such as reduced air pollution and improved urban mobility, stakeholders can create a ripple

effect that encourages sustainable transportation practices. The combined efforts of governments, businesses,

and communities can ensure that EV innovation contributes to a greener and more inclusive future. (Noel et al.,

2019).

While this study provides valuable insights, it is not without limitations. One major limitation is the geographical

scope, as the research focuses primarily on Malacca. This localized approach may not fully capture the variations

in EV adoption and innovation across different regions or countries. Factors such as cultural differences,

economic disparities, and varying government policies can significantly influence the findings. Future research

should consider expanding its scope to include multiple regions, thereby obtaining more generalized and

comparative insights.

Another limitation lies in the reliance on survey respondents. While the questionnaire was carefully designed

and validated, the possibility of response bias cannot be ignored. Participants may have provided socially

desirable answers or misunderstood specific questions, which could affect the accuracy of the data. Incorporating

a mixed-methods approach, including interviews or focus groups, could help triangulate the findings and provide

a more nuanced understanding of the factors influencing EV innovation.

Lastly, the study primarily examines the relationships between policy factors and EV innovation but does not

delve deeply into technological or environmental aspects. For example, advancements in battery technology,

renewable energy integration, and the environmental impacts of EVs throughout their lifecycle were not

addressed in detail. These areas are crucial for comprehending the full spectrum of EV innovation and adoption,

and should be explored in future studies to provide a comprehensive view. (Mock & Yang, 2014).

To build on the findings of this study, future research should consider expanding its geographical scope to

include diverse regions and countries. Comparing different contexts can provide insights into how cultural,

economic, and policy variations influence EV adoption and innovation. For instance, studying regions with

advanced EV ecosystems, such as Scandinavia or China, could highlight best practices that could be adapted to

areas like Malacca. This comparative analysis would contribute to a broader understanding of global trends and

localized strategies.

Additionally, future studies should incorporate emerging technologies and their impact on EV innovations,

including advancements in battery technology, vehicle-to-grid systems, and autonomous electric vehicles, which

have transformative potential but were beyond the scope of this research. Exploring these aspects would provide

a comprehensive view of the technological drivers of EV innovation and their implications for adoption. For

instance, analyzing the lifecycle costs and environmental benefits of new battery chemistries could offer valuable

insights for both policymakers and industry stakeholders.

Finally, a mixed-methods approach combining quantitative and qualitative data collection is recommended.

Surveys can be depth interviews or case studies to capture more nuanced perspectives from diverse stakeholders,

including policymakers, manufacturers, and consumers. This would allow researchers better to understand the

barriers and opportunities in EV adoption. Furthermore, longitudinal studies tracking the evolution of EV

innovation over time would provide valuable insights into how social, economic, and policy factors interact

dynamically to influence the adoption of EVs. (Noel et al., 2019)

ACKNOWLEDGEMENTS

The authors would like to thank the participating universities and students for their valuable contributions to

this study.

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www.rsisinternational.org

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