The Influence of Household Income and Cognitive Factors on Car Consumption

Car consumption has become a central issue for both transport policy and market strategy, particularly as many countries promote new energy vehicles (NEVs) to address energy security and climate concerns. This essay reviews existing research on the determinants of car consumption, with a specific focus on how total household income and cognitive factors jointly shape vehicle-related consumer behaviour. The literature shows that income acts as the primary structural constraint: it determines whether households can enter car ownership, influences vehicle segment and brand choice, and is associated with non-linear patterns such as threshold effects, multi-car ownership, and replacement cycles. At the same time, households with similar income levels often display markedly different choices, especially regarding NEVs. These differences are explained by cognitive mechanisms, including perceived value, attitudes toward new technologies, perceived behavioural control (e.g., confidence in charging and maintenance), subjective norms and social influence, and brand image considerations. In conclusion, the essay argues for a complementary perspective: income provides the financial capacity for car consumption, whereas cognition translates that capacity into concrete decisions about vehicle type and powertrain. The review concludes with implications for policy design and marketing strategy, highlighting the need to combine financial instruments with interventions that reduce perceived risks, improve perceived control, and strengthen credible NEV value propositions