Value-Based Encroachment Strategy for Electric and Autonomous Vehicles: Evidence from Kuwait

Abstract

Despite the global movement toward sustainable mobility, the adoption of electric and autonomous vehicles (EVs/AVs) in Gulf Cooperation Council (GCC) countries is shaped by unique socio-cultural and structural contingencies. This study provides a significant theoretical contribution by exploring market entry strategies through a multidimensional value framework that captures symbolic and contextual dimensions overlooked by traditional models such as TAM and UTAUT. Drawing on in-depth interviews, focus groups, and participant observations, the research utilizes Kuwait as a case study to delineate the multidimensional construct of perceived value through Osterwalder’s Value Proposition Canvas (VPC). The findings reveal that consumer adoption is influenced not only by utility and efficiency but also by social, emotional, epistemic, conditional, and cost values. Dealers, in turn, demonstrate how these values guide entry strategies for non-conventional vehicles by aligning product offerings with specific “Pain relievers”, “Gain creators”, and “Jobs to be done” (JTBD). The study identifies distinct encroachment pathways: high-end entry for battery electric vehicles (BEVs) and low-end entry for hybrid electric vehicles (HEVs). Notably, a dual-encroachment strategy is identified for high-tech Chinese brands, which are aggressively disrupting emerging markets by leveraging manufacturing efficiencies to dominate the mid-market while simultaneously deploying premium models to challenge luxury incumbents. Finally, despite the structural constraints on public AV deployment, the research highlights vital applications for autonomous systems within “industrial sandboxes” such as aviation, seaports, military, and oil sectors. While centered on Kuwait, the findings offer potentially transferable strategic insights for the broader GCC region.

1. Introduction

The global automotive industry is undergoing an accelerated transformation driven by technological innovation and a global transition toward sustainable energy. Vehicles are increasingly equipped with advanced automation, artificial intelligence, and machine learning capabilities, reflecting the broader paradigm of Industry 5.0, in which human–robot collaboration enhances manufacturing efficiency and user experience [1,2]. Simultaneously, the worldwide shift from fossil fuels to electric and alternative energy sources marks a strategic turning point in the gradual replacement of internal combustion engines (ICEs) with electric motors and fuel cell technologies.

The Gulf Cooperation Council (GCC) countries are among the most attractive emerging markets for these high-tech vehicles. Consumers in this region share distinct cultural preferences for luxury, have high disposable incomes, and require vehicles capable of performing reliably under extreme climatic conditions [3,4]. Kuwait, as a representative case, combines high GDP per capita and strong purchasing power with some of the lowest fuel prices globally. These unique socioeconomic conditions have historically prioritized private vehicle ownership while simultaneously reducing the immediate economic motivation to adopt electric alternatives.

Recent trends illustrate a complex landscape of opportunities and challenges. While sales of electric vehicles (EVs) have remained modest due to a sparse charging infrastructure and limited policy incentives, Chinese brands offering affordable, high-tech features have gained significant traction. Concurrently, Kuwait’s Vision 2035 signals a strategic commitment to economic diversification and environmental sustainability, encompassing plans for a dedicated “EV city” and the integration of renewable energy. These developments highlight a critical tension between entrenched structural barriers and emerging market opportunities [5,6].

Academic research on electric, hybrid, and connected vehicles in the GCC has grown in recent years. However, most studies rely on predictive acceptance models, such as TAM and UTAUT, or focus primarily on quantitative adoption metrics. Consequently, the existing literature often fails to capture the multidimensional value structures that drive consumer behavior in high-income, culturally diversified emerging markets [7,8,9,10,11,12,13].

The urgency of this study is further underscored by the rapid disruption of Kuwait’s automotive landscape. As of 2025, Chinese manufacturers achieved a historic milestone, securing 28% of the total market share [14]. This unprecedented displacement of traditional incumbents provides a unique laboratory to explore the mechanics of market encroachment. Consequently, this study investigates the strategic intersection of consumer values and market entry strategies in Kuwait, addressing two central research questions:

RQ1. How is “perceived value” multidimensionally defined by potential buyers of non-conventional vehicles within the unique socioeconomic and climatic context of Kuwait?

RQ2. How can automotive stakeholders utilize these value-based insights to formulate encroachment strategies that facilitate effective market penetration?

1.1. The State of Kuwait and the Gulf Market

Kuwait is a small but affluent Gulf state that provides a distinctive case study within the Gulf Cooperation Council (GCC) due to its combination of high per capita income, robust purchasing power, and unique structural conditions. According to Worldometer (2026), the total population of Kuwait in the first quarter of 2026 reached 5,088,382, with a median age of 34.8 years, reflecting a relatively young society [15]. Data from the Public Authority for Civil Information indicates that expatriates comprise 70.15% of the population, while Kuwaiti citizens represent 29.84%. This demographic composition underscores the multicultural nature of the market and the need to tailor automotive strategies to diverse consumer segments [16].

Economically, Kuwait remains one of the wealthiest nations globally, with a GDP per capita of approximately USD 54,833 in 2026 and an annual growth rate of 3.9% [17]. The automotive sector is particularly robust, characterized by one of the highest car ownership rates in the region. The combined new and used vehicle market in the GCC was valued at USD 4.82 billion in 2024, with the used car segment alone projected to grow from USD 1.55 billion in 2024 to USD 2.55 billion by 2032 [18,19].

Fuel subsidies remain a defining feature of the local economy. As of Q1 2026, gasoline prices in Kuwait are fixed at 200 fils per liter for Ultra (98-octane), 105 fils for Special (95-octane), and 85 fils for Premium (91-octane), averaging between USD 0.28 and 0.35 per liter [20]. While policy discussions suggest potential reforms to align prices with international benchmarks [21], the current low-cost environment poses a challenge for electric vehicle (EV) diffusion.

Regionally, the GCC electric vehicle market is forecasted to expand from USD 9.53 billion in 2025 to USD 11.64 billion in 2026, potentially reaching USD 31.66 billion by 2031 [22]. This growth is driven by proactive government mandates and the rapid deployment of ultra-fast-charging networks. Kuwait’s trajectory reflects this regional momentum; however, while affluent prestige buyers align Kuwait with high-end adoption pathways, persistent fuel subsidies and a slower infrastructure rollout temper diffusion compared with peers such as the UAE or Saudi Arabia.

Globally, electric car sales reached 17 million units in 2024, a 25% year-on-year increase. China continues to dominate, accounting for over 11 million sales—more than the entire global volume just two years prior. In contrast, growth in Europe has slowed due to the phasing out of subsidies and static CO₂ targets [23]. Kuwait’s unique mix of subsidies and demographics requires a value-based lens to explain adoption outcomes within these broader global trends. Furthermore, Kuwait’s Vision 2035 outlines plans for sustainability, including the establishment of a dedicated “EV city” and potential reductions in import customs for electric cars [24,25].

1.2. Technological Background: Electric and Autonomous Vehicles

Understanding the technological categories of electric and autonomous vehicles is essential before examining adoption dynamics.

Table 1. Types of electric vehicles.

Type	Full Term	Description
BEV	Battery Electric Vehicle	100% electric; no tailpipe; no engine (e.g., Tesla, BYD Seal).
PHEV	Plug-in Hybrid Electric Vehicle	Contains a plug for electric charge and a gas tank. Can drive 50–80 km on electricity alone.
HEV	Hybrid Electric Vehicle	“Self-charging” (e.g., standard Prius). No plug; the engine charges the small battery.
NEV	New Energy Vehicle	The umbrella term in China for all plug-in cars (e.g., BEV + PHEV).

Note: A conventional car (petrol/diesel) is indicated as an ICE (Internal Combustion Engine) vehicle.

,

Table 2. Types of electrical charging units and charging times.

Charge Level	Electric Current	Typical Power kW	BEV Charge Time	PHEV Charge Time	Best Use
Level 1	AC	1.3–2.4	30–50 h	6–10 h	Emergency/low mileage
Level 2	AC	7–22	6–10 h	1.5–3 h	Home/work/overnight
Level 3	DC	50–150	30–50 min	N/A	Quick top-ups at shopping centers
Ultra-Fast	DC	250–400	12–20 min	N/A	Highway fast stations

Note: Charge time is calculated from 10% to 80% charging capacity.

and

Table 3. Levels of autonomous driving (Society of Automotive Engineers).

	Level of Autonomy	Description
L1	Driver Support Systems	Assist with steering and acceleration (adaptive cruise control).
L2		Vehicle controls steering and braking (basic autopilot). Driver must monitor.
L3	Conditional Automation	Vehicle manages most driving tasks in limited scenarios (e.g., traffic jams) but requires driver intervention when prompted.
L4	High Automation	Vehicle can operate independently in specific environments (e.g., geo-fenced urban areas).
L5	Full Automation	Vehicle performs all driving tasks under all conditions, with no human input required.

Note: Usually, L1 is preceded by L0 which indicates the basic level of conventional cars without assistive driving features.

outline the primary types of EVs and the internationally recognized levels of charging and autonomous driving [26,27].

Recent innovations in battery systems and electric engines have maximized driving range but have also increased vehicle prices relative to conventional internal combustion engine (ICE) or hybrid models [28]. Although 2026 models frequently exceed 500 km of range, infrastructure concerns persist. Industry data indicates that while 77% of prospective EV buyers intend to rely on home charging, 53% currently lack access to a dedicated home setup [29]. This creates a reluctant over-reliance on private charging units, reinforcing fears that EVs cannot yet support spontaneous, long-distance mobility.

Modern EVs also incorporate smart features such as self-parking and automatic lane-keeping, aligning with the demand for luxury in emerging markets. In parallel, autonomous driving technologies have progressed through incremental levels of automation. This study adopts the SAE J3016 standard, which provides a six-level taxonomy for driving automation based on the Dynamic Driving Task (DDT) and the Operational Design Domain (ODD) [27].

Level 3 (L3) conditional automation represents a turning point, allowing “eyes-off” driving in specific conditions, such as congested traffic, while requiring the driver to remain available for re-engagement. For example, Honda’s “Traffic Jam Pilot” illustrates this evolution toward conditional autonomy. In the GCC, shown in Figure 1, the rapid adoption of high-tech vehicles is being accelerated by Chinese manufacturers who differentiate their offerings through superior intelligent driving technology. While AV adoption has been studied extensively in Western contexts [30], infrastructure gaps and cultural preferences for driver control in the GCC continue to inhibit readiness for public use [31,32].

2. Materials and Methods

Consumer adoption of innovative products is frequently analyzed through the lens of perceived value. Early frameworks, such as the Theory of Consumption Values (TCV), identified functional, social, emotional, and epistemic dimensions (referring to novelty, curiosity, and the acquisition of knowledge) as the primary drivers of consumer choice [33,34]. Subsequent research has emphasized managerial perspectives on value creation, highlighting experiential and symbolic aspects [35] and introducing practical strategy tools such as the Value Proposition Canvas [36]. Recent studies have extended these frameworks into digital and high-tech adoption contexts [37,38], with meta-analyses confirming the robustness of multidimensional value determinants across diverse industries.

2.1. The Multidimensional Construct of Value

Developed by Sheth, Newman, and Gross, the Theory of Consumption Values (TCV) remains a foundational framework in consumer behavior research [33]. It posits that consumers evaluate products and services not merely on functional utility, but through a complex set of psychological drivers.

Table 4. TCV: the multidimensional construct of value from [33].

Value Dimension	Description
Functional Value	Practical utility and performance of a product (e.g., desiring a hybrid car for fuel efficiency and low maintenance cost).
Social Value	The product’s ability to enhance social image or status (for example, driving a BMW or Porsche Taycan signals prestige and modernity).
Emotional Value	Emotional attachment and positive feelings for the product and its consumption (for example, the excitement, love, affection, and pride associated with owning a luxury BYD or Tesla EV with cutting-edge technology).
Epistemic Value	The value attached to knowing and experiencing a new product. It captures the consumer motivation to try something new because they want to learn, explore, or experience an innovation (for example, consumers buying high-tech cars with advanced levels of autonomy and AI-enabled features to experience new technology).
Conditional Value	Value derived from specific circumstances or contexts (for example, a customer choosing an SUV for desert driving or buying a pickup truck for specific purposes).

lists TCV five distinct dimensions of perceived value: functional, social, emotional, epistemic, and conditional [39].

Complementing this psychological view, Smith and Colgate proposed a customer value creation framework from a managerial perspective. Their model identifies four categories of value (detailed in

Table 5. Smith and Colgate’s managerial perspective of value [35].

Functional Value (Instrumental)	How Functional/Useful a Product Is at Fulfilling a Customer’s Desired Goal. This Can Be Extended by Process Simplifiers to Offer Simple and Easy Solutions to Customers.
Symbolic Value (Expressive)	The value derived from the psychological meanings associated with a product (e.g., companies that develop a strong brand name focusing on style or an image that suggests the customer’s lifestyle).
Experiential Value (Hedonic)	The extent to which a product creates a good experience for a customer and appeals to their hedonic consumption based on sensory pleasure.
Cost Value (Sacrifice)	The focus on value for money. Companies that act as price minimizers offer value based on lower price.

) designed to align directly with marketing strategy and execution [35]. By reframing the dimensions of TCV into actionable categories (e.g., mapping emotional value to experiential and social value to symbolic), this framework enables managers to design value propositions that resonate with specific target segments. For instance, an automotive dealer marketing electric vehicles (EVs) might emphasize prestige (symbolic value), driving dynamics (experiential value), and long-term operational savings (cost value).

A holistic, two-sided view of market entry can be achieved by synthesizing TCV with the Smith and Colgate perspective [35]. While the former explains internal consumer motivations, the latter provides the strategic language for firms to deliver on those motivations. This synthesis is supported by more recent scholarship; for example, Ref. [37] developed a conceptual framework for customer value management that emphasizes attraction, retention, and efficiency across the entire customer lifecycle. Their perspective extends the Smith and Colgate model by focusing on how firms sustain value creation over time rather than just at the point of sale [35].

Furthermore, Park proposed a framework where value transcends the product itself, highlighting customer engagement as a primary value driver. This approach suggests that value is augmented through social media communities, user-generated content, and loyalty programs [38]. In this brand ecosystem, value is derived from the relationship and interaction between the firm and its customers, fostering a sense of belonging and recognition that is particularly relevant for the adoption of high-tech, status-driven automotive innovations.

Table 6. Customer engagement as an extension of value dimensions.

Value Dimension	Extension of Value Dimensions
Functional value	Engagement can provide practical benefits (e.g., loyalty points, exclusive offers).
Social value	Through engagement with the product, customers gain recognition by being part of a brand community.
Emotional value	Engagement creates feelings of belonging, excitement, or pride (e.g., sharing EV experiences online).
Epistemic value	Customers learn and satisfy their curiosity through engagement (e.g., attending EV demo events, testing autonomous shuttles).
Conditional value	Engagement is related to a specific condition (e.g., operating an autonomous vehicle in a controlled area at the airport).

explains the extensions of value dimensions.

2.2. The Value Proposition Canvas

Osterwalder introduced the Value Proposition Canvas (VPC) as a strategic framework to ensure alignment between product offerings and specific market needs [36]. The VPC consists of two primary components: the Customer Profile and the Value Map. The Customer Profile identifies the multidimensional “Jobs to be done” (JTBD) that consumers seek to accomplish, which may be functional, social, emotional, or other distinct types of value. Associated with these jobs are “Pains”—the obstacles, risks, and negative outcomes that inhibit job completion—and “Gains”—the desired benefits or positive surprises that consumers expect. Complementing this, the Value Map outlines the firm’s offering through three corresponding elements: specific Products and Services, Pain Relievers that mitigate or eliminate identified customer obstacles, and Gain Creators that amplify the positive outcomes sought by the user.

By mapping these elements, value is created when the product or service significantly helps the customer complete their jobs, reduces their “Pains”, and elevates their “Gains”. This is defined as the “Fit” stage, achieved by systematically mapping elements in the Value Map to the Customer Profile. This process operationalizes the multidimensional construct of value into actionable strategies for companies targeting specific market segments [36,40].

The Value Proposition Canvas for EVs can be strategically mapped across a multidimensional Customer Profile. The functional JTBD focuses on achieving reliable, efficient, sustainable, clean, cost-effective, and technologically advanced point-to-point mobility. Simultaneously, the social JTBD promises achieving an enlightened social status within the consumer’s professional and social circles, characterized by the active signaling of environmental responsibility.

The emotional JTBD addresses the internal desire for peace of mind through reduced mechanical maintenance, as well as the sensory gratification derived from instantaneous torque (acceleration) and acoustic refinement (quietness). However, the fulfillment of these jobs is frequently obstructed by significant customer “Pains”, categorized as functional obstacles such as range anxiety and infrastructural risks stemming from the current scarcity of fast-charging stations. Conversely, customer “Gains” are realized through a wide range of benefits, including the achievement of prestige, tangible environmental and long-term cost-efficiency, strong resale value, and extended warranties. In this context, “Fit” is achieved when the vehicle’s specific attributes act as Pain Relievers (e.g., home charging convenience) and Gain Creators (e.g., fuel savings), directly addressing the prioritized requirements of the target market.

Theoretical synthesis: The VPC represents the practical tool that connects “what” values customers seek with “how” firms create and manage these values, turning them into actionable strategies. It incorporates the Theory of Consumption Values ([33]) into Smith and Colgate’s [35] framework and more recent theories of engagement value in digital and high-tech innovations [37,38].

Value is no longer a static product attribute but is co-created through customer engagement and relationship dynamics [41]. These extensions provide a bridge between traditional consumer value theory and the unique challenges of high-tech markets such as electric vehicles in the Gulf region. In this context, engagement acts as a “multi-sensory layer” that amplifies functional and emotional values through continuous interaction between the user and the vehicle’s smart ecosystem [37,38].

In conclusion, this research synthesizes the psychological depth of the Theory of Consumption Values (TCV) with the managerial utility of Smith and Colgate’s framework to establish a comprehensive six-dimensional value model comprising functional, social, emotional, epistemic, conditional, and cost values [35]. By integrating these dimensions into the Value Proposition Canvas (VPC), the study maps specific consumer “Pains and Gains” against the unique value drivers of electric and high-tech vehicles. This integrated VPC framework serves as the analytical foundation for evaluating how global automotive firms can employ encroachment strategies to navigate the competitive landscape of the Gulf market. Using Kuwait as a critical case study, the methodology illustrates how these value dimensions influence market entry and consumer adoption, providing a strategic roadmap for aligning innovative product offerings with the distinct cultural and economic priorities of the region. Please see Figure 2.

2.3. Technology Adoption and Encroachment Strategies

While value frameworks highlight the multidimensional drivers of choice, adoption research has historically been dominated by predictive models such as the Technology Acceptance Model (TAM) [42] and the Unified Theory of Acceptance and Use of Technology (UTAUT) [30]. Despite their effectiveness in predicting behavioral intent, these models often provide a complementary but narrower lens, focusing on utilitarian constructs such as perceived usefulness and ease of use while overlooking deeper cultural and symbolic determinants.

In the Gulf context, studies applying TAM/UTAUT to EV adoption [43,44] have shown limited explanatory power. This is largely due to structural conditions, such as fuel subsidies and infrastructure gaps, and cultural preferences for prestige and luxury that traditional models struggle to quantify. A meta-analysis by [12] further revealed that while perceived usefulness strongly correlates with adoption, ease of use offers weaker explanatory power, underscoring the complexity of human behavior in high-tech transitions. These findings suggest that while TAM/UTAUT captures important predictors, it fails to account for the symbolic and contextual dimensions central to Kuwait and the broader GCC.

Beyond individual adoption models, encroachment strategies offer a structural perspective on how innovations penetrate a market. They explain whether technologies diffuse from high-end luxury segments downward or from low-end affordability segments upward [45,46].

Recent research by [47] suggests that EVs typically follow a high-end encroachment strategy, targeting luxury segments before diffusing down-market. Conversely, hybrid electric vehicles (HEVs) often benefit from a low-end encroachment strategy, appealing to price-sensitive buyers before moving upward. This distinction is highly relevant to Kuwait, where EVs appeal to prestige-driven buyers, and HEVs attract affordability-focused segments. Notably, this study determines that high-tech Chinese vehicles in Kuwait demonstrate a dual-encroachment strategy, simultaneously targeting luxury and affordable segments—a significant extension of the Benzidia et al. framework.

Several studies have examined EV adoption in the region, focusing on barriers such as low fuel prices, hybrid acceptance [48], and policy readiness [31,43,44]. However, these works largely rely on quantitative adoption metrics and traditional predictive models, offering little focus on value-based determinants or the strategic role of dealers.

Positioning this study within the value-based tradition allows for a deeper exploration of how these encroachment strategies unfold. Kuwait serves as a critical case study for the Gulf due to its shared socioeconomic characteristics, including high per capita income, extreme climatic conditions, and a heavy institutional reliance on the automotive sector. By analyzing how consumers evaluate prestige, novelty, and lifestyle alignment alongside performance, this research provides the foundation for examining how value-based dealer strategies interact with Kuwait’s unique structural environment to shape adoption.

2.4. Propositions

Building on the synthesis of multidimensional value and market entry theories, the following propositions were formulated to examine how value determinants and dealer strategies interact with Kuwait’s unique structural conditions:

P1. “Consumers in Kuwait articulate an inclination toward hybrid electric vehicles (HEVs) over battery electric vehicles (BEVs), reflecting perceived reliability in the context of current infrastructure constraints”.

P2. “High-tech Chinese automotive brands in Kuwait are perceived to be executing a dual-track encroachment strategy; they leverage cost efficiencies to penetrate traditional mid-market segments while simultaneously articulating a premium value proposition through high-density technology to challenge established luxury incumbents”.

P3. “The adoption of autonomous vehicles in Kuwait is constrained by perceived structural limitations and regulatory environments within the local consumer market”.

2.5. Methodology

Guided by the Theory of Consumption Values [33], managerial value creation [35], and modern engagement extensions [38], this study established a comprehensive six-dimensional value model comprising functional, social, emotional, epistemic, conditional, and cost values. The Value Proposition Canvas (VPC) was employed as the primary analytical tool to map consumer “Pains and Gains” against the value propositions of emerging vehicle technologies. This exploratory, qualitative approach was chosen to capture the “lived experiences” of market actors, uncovering cultural meanings and symbolic drivers that are often obscured by the purely predictive metrics of quantitative models.

Research design: The study is motivated by an exploratory, qualitative approach designed to generate insights into the cultural meanings, symbolic values, and contextual drivers of adoption rather than relying on the purely predictive metrics from quantitative models. By employing a qualitative design, this research captures the “lived experiences” of consumers and dealers in Kuwait. The qualitative inquiry can uncover encroachment mechanisms and value perceptions that are not easily measurable, thereby providing a foundation for future quantitative studies and offering richer insights for practitioners.

Research context and sampling: The research is situated within Kuwait’s automotive market, a unique landscape where encroachment strategies are currently unfolding across electric (EV), hybrid (HEV), and high-tech Chinese internal combustion engine (ICE) segments. The study employed a dual-perspective sampling strategy to capture insights from the supply (dealers) and demand (consumers) sides. A total of 130 subjects participated in a combination of fifteen focus groups and eighty-five semi-structured interviews. The sample size was determined by the principle of theoretical saturation, where data collection concluded only when no new thematic insights emerged.

Supply side (car dealerships): Seven focus groups were conducted with showroom managers, brand managers, and marketing executives (n = 21). These were supplemented by 30 individual semi-structured interviews with sales representatives to decode organizational encroachment strategies. Demand side (consumers): Eight focus groups were held with potential buyers (n = 24), balanced for age and gender. Additionally, 55 individual interviews were conducted with prospective customers at showrooms.

Sampling was purposive, targeting professionals and individuals with a demonstrated interest in innovative automotive technologies to ensure data richness. Recruitment was conducted on-site and through professional networks such as LinkedIn.

Recruitment took place on-site for car dealerships, while consumer recruitment was conducted on-site as well as through social networks and targeted outreach on LinkedIn, focusing on professionals across various industries. While the core themes remained consistent for both segments, the interview guides focused on the perceived value of EV/hybrid vehicles, the autonomous features of high-tech vehicles, the value dimensions sought by customers, infrastructure concerns in Kuwait, and the brand perception of Chinese versus other reputable incumbent models. This format allowed participants to articulate not only functional considerations (e.g., cost, performance, infrastructure) but also symbolic and cultural dimensions such as prestige, lifestyle alignment, and perceptions of innovation. Participants were also introduced to the levels of vehicle automation defined by the U.S. Society of Automotive Engineers (SAE), ensuring a common understanding of technological categories. Personal observations of customer–salesperson interactions and marketing materials and promotions were recorded in field notes.

In addition, secondary data sources such as industry reports and media coverage were reviewed to provide contextual depth. Ethical considerations were observed throughout the process, including informed consent and secure storage of interview transcripts. Confidentiality was maintained by anonymizing responses. Cultural sensitivity was observed, particularly in discussions of prestige and social recognition, which are significant in Kuwait’s context. While qualitative studies typically involve smaller samples than quantitative surveys, the emphasis here was on capturing rich, contextual insights rather than generalizing to the entire population.

Data analysis: Data was analyzed using a systematic thematic analysis approach, managed via Microsoft Excel to ensure structured organization and cross-comparison of findings. The analysis followed a three-stage coding process: initially, open coding was performed to identify recurring concepts in the raw transcripts, followed by axial coding to group these concepts into broader categories such as “structural limitations”, “Pains”, and “Gains”. Finally, these categories were synthesized into the overarching research propositions. To ensure inter-coder reliability, the authors independently coded a subset of the data and resolved any discrepancies through consensus-based discussion, thereby refining the final codebook. Triangulation was achieved by cross-referencing insights from consumer focus groups, dealer interviews, and field observations, while data saturation was reached when subsequent interviews yielded no new thematic insights, confirming the robustness of the conceptual framework.

3. Results

The qualitative data revealed distinct thematic dimensions shaping the adoption of non-conventional vehicles in Kuwait. These findings were operationalized and mapped onto the dual-component structure of the Value Proposition Canvas (VPC), providing a rigorous framework to align consumer-defined “Pains”, “Gains”, and “Jobs to be done” (JTBD) with the strategic value propositions and market entry trajectories currently deployed by automotive manufacturers.

3.1. Adoption of EVs Versus HEVs and PHEVs

A dominant theme among respondents was a profound hesitation regarding using battery electric vehicles (BEVs) as the primary vehicle. Participants consistently utilized hedging language such as “not sure”, “I am afraid”, and “will not take the risk” when discussing fully electric options. This sentiment is rooted in a perceived lack of “infrastructure readiness”, particularly regarding public charging and specialized maintenance.

“I tried using public charging stations; there are only a few in Kuwait... I prefer using my electric car for short trips like going to supermarkets and dropping kids”.

(Respondent 12)

“I’m a Porsche guy through and through. Right now, I roll with a Cayenne, but I’ve got my eye on the new Macan 4S electric—sleek, elegant, and worth a try. Don’t get me wrong though, the Cayenne is my baby; I’m not letting it go”.

(Respondent 37)

This data suggests that in Kuwait, many customers are not using BEVs for their primary transport. Instead, BEVs are used for neighborhood transport or as a secondary household asset. High-end BEVs are used to establish social status. They express a “social value” for rich customers. Consumers are unwilling to trade the “peace of mind” of a conventional engine for the “innovation” of an EV until the charging network is perceived as readily available. From a theoretical standpoint, the “functional value” of an EV is currently capped by a conditional value (the environment).

The qualitative data from focus group sessions and stakeholder interviews suggests that while global trends favor a shift toward battery electric vehicles (BEVs), a significant segment of the Kuwaiti market—predominantly expatriates—remains anchored in a preference for hybrid technologies, specifically HEVs rather than PHEVs.

For these “transient” owners, the vehicle was evaluated as a portable asset rather than a permanent domestic fixture. Expert testimony from dealership representatives highlights a unique consumer behavior: expatriate professionals (e.g., in the educational, medical, legal, and financial sectors) often acquire these vehicles as short-term assets with the strategic intent to either resell them locally or export them to their home countries. This strategy is motivated by the ability to leverage Kuwait’s tax-free purchase environment and the significantly higher residual value of hybrid vehicles in regional markets, such as Jordan and Lebanon, where fuel costs are substantially higher.

Furthermore, the data revealed that HEVs (self-charging hybrids) are characterized by their superior functional utility compared with BEVs and PHEVs. Participants indicated that HEVs resolve the “What if?” dilemma—providing a critical safeguard against the perceived lack of structural readiness in the public charging grid. This sentiment is exemplified by the strong demand for high-utility models such as the Toyota Highlander Hybrid.

Consumers prioritized the “self-charging” nature of HEVs, which eliminates behavioral friction (the requirement to plug them in) while maintaining the reliability and spare parts availability associated with established Japanese models. This orientation was particularly pronounced among expatriates who plan to eventually ship the vehicle to markets with higher fuel costs. Respondent-23 captured this strategic intent clearly: “I am planning to buy a Toyota Highlander Hybrid... It charges itself by itself. Toyota spare parts are available anywhere. I will take it back home to Jordan when I leave Kuwait”.

Focus group participants generally reached consensus that the hybrid’s independence from external infrastructure will allow it to outperform BEVs in sales for at least the next three to five years. This represents a unique cultural finding; the “Job to be done” (JTBD) for a vehicle in this segment is not merely domestic commuting, but asset portability. Consequently, preference is strictly reserved for technologies that do not rely on external infrastructure. Thus, Proposition 1 is supported, as the market demonstrated a definitive preference for HEVs over PHEVs and BEVs.

3.2. Market Encroachment Strategy

Schmidt posits that the successful introduction of a new technology into an emerging market depends not only on competitive features but also on the strategic choice of the entry point [45]. Whether a firm initiates a low-end or high-end encroachment strategy fundamentally shapes adoption velocity, competitive response, and long-term market dominance.

Our findings suggest that the Kuwaiti market currently exhibits a bifurcated encroachment landscape. Established luxury incumbents (e.g., Porsche, Mercedes-Benz, BMW) have successfully executed a high-end encroachment strategy, positioning BEVs as high-performance, “status-driven” secondary assets for high-net-worth individuals. In this segment, range and charging anxieties are mitigated by the availability of alternative ICE vehicles within the same household. Conversely, the preference for HEVs among expatriate professionals represents a strategic “value fit”, leveraging the HEV’s role as an incremental innovation for the mid-value market—a finding that aligns with [47].

The empirical data reveals that Chinese manufacturers in Kuwait are not confined to a singular low-end trajectory; instead, they are pioneering a dual-encroachment strategy. Brands such as BYD and Changan leverage partnerships with reputable local dealers (e.g., Alghanim and Al-Mutawa) to offer “Pain Relievers” such as localized maintenance and “Gain Creators” such as integrated high-tech features at competitive price points. As Respondent 4 noted: “I prefer buying a Chinese hybrid car over Tesla... Tesla owners need to send it to the UAE for service”.

Simultaneously, manufacturers have introduced luxury brands such as Hongqi, Jetour, and Zeekr to challenge European incumbents. These brands offer “frontier” features—including amphibious capabilities and 360-degree “tank turns”—paired with ultra-premium interiors. As Respondent 57 observed: “Zeekr 009 is positioned against the Mercedes EQV300”.

This dual pathway allows Chinese firms to establish “technological aspiration” through luxury BEVs while driving “functional adoption” through mid-market HEVs. Consequently, while the empirical data supports the low-end encroachment predicted in Proposition 2, it further reveals a more complex dual-pathway pattern that includes simultaneous high-end entry—a dimension not captured by traditional single-trajectory models. This dual pathway extends the framework proposed by [47]. While their work suggests that high-end encroachment is essential for brand-building, our data suggests that in the Gulf context, both pathways can occur simultaneously to accelerate market disruption. In this light, the Kuwaiti market serves as a unique case study: luxury BEVs (Zeekr, Hongqi) create the necessary technological prestige, while low-to-mid-market HEVs (BYD, Changan) provide the functional volume required for structural market change.

3.3. Autonomous Transportation: From Consumer Resistance to Industrial Utility

The qualitative data indicates a paradoxical relationship between Kuwaiti consumers and vehicle automation. While participants expressed high “engagement value” for Levels 2 and 3 features—such as automated parking and traffic-jam pilots—there was widespread skepticism regarding full autonomy (Levels 4/5) on public roads. This resistance is rooted in significant “structural pains”, specifically the volatility of the urban environment, ongoing road maintenance projects, and unpredictable traffic dynamics.

However, a critical “pivot point” emerged during focus group discussions. Consumers and industry stakeholders identified the significant utility of driverless technology within highly structured, controlled environments. In technical terms, these environments function as Controlled Operational Design Domains (ODDs), as defined by SAE J3016 and ISO 34503. Participants specifically indicated sectors such as oil fields, seaports, and aviation hubs where environmental variables are predictable. Respondent 31 captured this sentiment with a pragmatic suggestion: “...Why not use them in restricted areas such as the airports?”

This insight suggests that the perceived risk of autonomy is not a rejection of the technology itself, but rather a lack of trust in the structural readiness of public infrastructure. These findings reveal a strategic opportunity for a B2B (Business-to-Business) transition within the Kuwaiti automotive sector. By pivoting from an emphasis on personal mobility to a refinement of autonomous solutions for industrial logistics, site security, and terminal transport, manufacturers can bypass the “infrastructure hurdle” that currently stalls consumer adoption.

Consequently, while Proposition 3 is supported regarding the constraints on personal mobility, the data revealed a high-value entry point for autonomous technology within Kuwait’s industrial and logistics sectors. This indicates that the “Fit” for autonomous vehicles in the GCC is currently found in specialized industrial “sandboxes” rather than the general consumer market.

4. Discussion

Beyond its theoretical contributions, this study offers actionable guidance for automotive stakeholders navigating the unique socioeconomic landscape of the Kuwaiti and broader GCC markets.

4.1. Mapping Value Propositions to the Consumer Profile

The qualitative findings underscore a critical alignment between localized “Pains”, “Gains”, and “Jobs to be done” (JTBD) and the specific functional attributes of the automotive offering. For manufacturers, achieving market “Fit” requires recognizing that value in the Gulf is multidimensional and context-dependent.

For instance, the demand for high-ground-clearance SUVs transcends aesthetic preference; it is a functional response to the “conditional pains” caused by high residential speed bumps and the cultural JTBD of seasonal desert camping. Similarly, advanced battery cooling and high-capacity climate control systems are not merely features but essential “Gain Creators” that address the epistemic fear of technological failure in extreme 50 °C+ temperatures. Even secondary features, such as sensor-activated power liftgates and proximity-based keyless entry, provide significant “engagement value”. By automating the locking/unlocking process, these technologies simplify the daily logistics of household management and errands, eliminating the “hassle” of manual key retrieval. Thus, for an encroachment strategy to succeed, manufacturers must transition from standardized global models to contextually tailored configurations that treat these localized features as core value propositions rather than optional trims.

4.2. Diverged Engagement: Prestige vs. Portability

The findings demand a diverged engagement strategy for automotive dealers and manufacturers, tailored to the bifurcated nature of the market:

The high-net-worth segment: For affluent consumers, marketing should surpass functional utility, focusing instead on emotional, social, and epistemic values. This can be achieved by cultivating exclusive brand communities and prestige-driven digital services. Given the “second-car” adoption model prevalent in this segment, dealers should position EVs as high-tech lifestyle supplements rather than primary transport.

The expatriate segment: Conversely, for expatriate professionals, dealers must address the functional value of the HEV and the “repatriation JTBD”. This involves highlighting resale value and providing robust after-sales support that guarantees long-term vehicle viability.

The findings regarding “repatriation value” gain significance when considering the demographic architecture of the GCC. With expatriates comprising approximately 69% of the population in Kuwait and up to 88% in the UAE and Qatar ([49]), the JTBD of asset portability is not a niche requirement but a dominant market driver. This demographic reality explains why a high-end encroachment strategy (targeting luxury-seeking nationals) must coexist with a low-end encroachment strategy (targeting value-seeking expatriates via hybrids) to effectively capture and dominate the regional market.

4.3. The Dual-Encroachment Strategy of Chinese High-Tech Vehicles

The rapid expansion of Chinese original equipment manufacturers (OEMs) within the GCC represents a significant departure from traditional market entry patterns. By scaling rapidly, diversifying product lines, and reshaping consumer perceptions, Chinese firms are disrupting the market through a synchronized, two-tier approach. Brands such as BYD, Changan, Great Wall Motors (GWM), and Geely—the latter holding a dominant stake in Volvo and 100% ownership of Zeekr—are now aggressively expanding their global footprint by leveraging a dual-encroachment strategy.

The low-end pathway: On the one hand, Chinese OEMs are executing a low-end encroachment strategy via their conventional internal combustion engine (ICE) and hybrid (HEV) models. This is achieved by offering “high-fidelity” aesthetic designs that mirror European luxury archetypes (e.g., Land Rover Defender or Porsche) at a disruptive price point. These offerings capitalize on a high degree of multidimensional value, integrating advanced user interface (UI) and user experience (UX) ecosystems—including interactive voice recognition and multi-screen haptic displays—that were historically reserved for premium Western models. By democratizing “luxury-adjacent” features, these brands are successfully redefining the “value-for-money” proposition for the mid-market segment.

The high-end pathway: Simultaneously, luxury Chinese brands such as Zeekr and Hongqi are pursuing a high-end encroachment strategy, specifically targeting the premium BEV and high-tech segments. By positioning these vehicles as prestigious, high-performance assets, Chinese OEMs appeal to high-net-worth early adopters who prioritize technological novelty and smart luxury over traditional brand heritage.

This dual-pronged approach effectively mitigates consumer “Pains” regarding high acquisition costs in the premium sector while simultaneously satisfying “Jobs to be done” related to social status signaling and digital lifestyle integration. As [47] suggest, high-end entry is crucial for brand-building; in the Kuwaiti context, Chinese OEMs use this prestige to “halo” their entire fleet, making their mid-market models more aspirational.

4.4. Autonomous Vehicles: Consumer Skepticism vs. Industrial Opportunities

The findings reveal a fundamental divergence in the market potential for autonomous technology. While the Business-to-Consumer (B2C) market demonstrates significant resistance to full autonomy—primarily due to cultural barriers and perceived safety risks on public roads—a distinct and promising trajectory emerges within the Business-to-Business (B2B) sector. This study found that AV adoption in Kuwait is not a single continuum moving from consumers to industry, but rather two distinct empirical domains with varying degrees of structural readiness.

The identified readiness for autonomous applications within restricted zones—such as oil fields, seaports, and aviation hubs—suggests that transport authorities should prioritize regulatory sandboxes for these specific environments. These controlled Operational Design Domains (ODDs) provide a low-risk “proof of concept” that is decoupled from the unpredictable complexities of urban passenger transport. For industrial stakeholders in energy and logistics, the value proposition shifts from “lifestyle innovation” to “operational risk mitigation”. By focusing on the functional value of AVs in hazardous or repetitive workflows, organizations can maximize efficiency while bypassing the socio-technical inhibitors currently stalling the consumer market.

4.5. Actionable Policy: The Automotive Innovation Sandbox

To move beyond macro-level observations, this study proposes the implementation of an automotive innovation sandbox under the joint oversight of the Public Authority for Industry and CITRA (Communication and Information Technology Regulatory Authority). This initiative aligns directly with the digital transformation pillars of Kuwait Vision 2035.

By establishing legislative pilot zones within restricted-access hubs—such as Kuwait Petroleum Corporation (KPC) facilities or military logistics zones—Kuwait can create “living laboratories” for AV testing. These environments offer controlled traffic variables and private infrastructure, allowing for the development of localized regulatory frameworks before a broader urban rollout. Furthermore, as these high-tech vehicles transition toward Vehicle Mobile Edge Computing (VMEC), the integration of blockchain-based frameworks [50] becomes essential to optimize resource allocation and ensure energy efficiency during real-time data processing. Such technological safeguards are critical for maintaining the security and reliability of autonomous fleets in Kuwait’s vital industrial sectors.

4.6. Strategic Implications for the GCC Region

While the empirical focus of this study is centered on the Kuwaiti automotive sector, the findings offer significant insights for the broader GCC region. Given the shared socioeconomic profiles, high household purchasing power, and extreme climatic conditions across the Gulf, the encroachment strategies identified here can serve as a blueprint for regional expansion.

Specifically, the dual-encroachment strategy pioneered by Chinese OEMs and the pivot toward autonomous adoption in controlled industrial sectors are likely to be mirrored in Saudi Arabia’s Vision 2030 projects and the UAE’s smart city initiatives. Kuwait, therefore, can act as a prototypical lead market where the interplay between expatriate-driven hybrid demand and national-driven luxury EV demand provides a model for navigating the demographic complexities of the entire Gulf region.

4.7. Limitations and Future Work

While this study offers high-resolution insights into the Kuwaiti automotive transition, several methodological boundaries and limitations must be acknowledged:

Sampling and recruitment bias: Participants were recruited primarily through dealership networks and potential buyers visiting dealership showrooms. This may introduce a “brand or channel influence”, where respondents’ views are anchored to their experiences with specific high-tech brands or the premium dealership environment, potentially overrepresenting tech optimism, compared with the general public. On the other hand, the study employed a mixed-mode approach (in-person and online). Despite this increased accessibility, the lack of uniform personal observation during online sessions may have limited the researcher’s ability to capture nonverbal cues or environmental context, which are vital to qualitative inquiry.

Stakeholder asymmetry: An inherent tension exists between the “dealer voice” (driven by commercial interest and technical expertise) and the “consumer voice” (driven by lived experience and cultural hesitancy). Additionally, data may be subject to social desirability bias, where participants align with perceived norms of modernity. Dealers possess technical expertise and commercial interests that may skew the discourse toward market readiness.

Geographic scope and generalizability: Although Kuwait can be considered a potential representative market for the GCC region, the findings lack comparative data from other GCC countries. Future research should employ a cross-national longitudinal design to track how repatriation strategies and dual-encroachment patterns evolve as Saudi Arabia, Qatar, and the UAE accelerate their infrastructure investments.

5. Conclusions

This study mapped the complex landscape of high-tech mobility adoption in Kuwait through the integrated lens of the Value Proposition Canvas and market encroachment theory. The findings suggest that the transition toward an electric and autonomous future is not a uniform trajectory but a bifurcated evolution. While electric and hybrid vehicles are poised for immediate B2C market penetration, autonomous vehicles face a socio-technical lag that necessitates a strategic pivot toward B2B industrial sandboxes.

Central to this research is the development of a six-dimensional value model, which synthesizes disparate theoretical frameworks into a cohesive strategic lens for the Kuwaiti market. By moving beyond the binary metrics of conventional quantitative studies, the qualitative approach captures the nuanced intersection of functional, emotional, social, epistemic, conditional, and cost values. This multidimensional model provides the granularity needed to define local consumer intent, illustrating that adoption is driven as much by climate-specific needs (conditional) and status signaling (social) as it is by economic considerations.

A primary theoretical contribution is the identification of the dual-encroachment strategy employed by Chinese high-tech brands, which disrupts established brand hegemonies by simultaneously targeting luxury and mid-market segments. Furthermore, the discovery of asset portability as a dominant “Job to be done” (JTBD) for the expatriate professional segment explains the overwhelming preference for HEVs. In the tax-free environment of Kuwait, the vehicle is conceptualized as a “repatriation asset”, prioritized for its high residual value and infrastructure independence across regional borders.

For manufacturers and policymakers, this study provides a definitive specification roadmap, transitioning market entry from generic positioning to a targeted refinement of vehicle features tailored to local lifestyles. While focused on the Kuwaiti context, these findings carry significant strategic implications for the wider GCC market. Given the shared socioeconomic profiles, extreme climatic conditions, and high expatriate demographics across the Gulf, Kuwait serves as a potential lead market. The strategies identified here—specifically the dual encroachment of Chinese brands and the B2B pivot for autonomous technology—offer a scalable blueprint for the transition toward sustainable, tech-driven transportation in neighboring nations (Saudi Arabia, Qatar, Bahrain, the UAE, and Oman). Ultimately, this research ensures that the region’s high-tech mobility shift aligns with the localized “Pains”, “Gains”, and “Jobs to be done” of its people, while simultaneously supporting the ambitious environmental goals of Kuwait Vision 2035 and beyond.