(PDF) Electric vehicles in Europe from 2010 to 2017

Electric vehicles in
Europe

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Major forces shaping business environment of car manufacturing industry. Explain how
industry has changed in last few years. Critical assessment of organisational and other
changes that may take place in future and reasons for such changes. Discuss reason why there
is drive towards production of electric cars to position to gain competitive advantage.........3
b) Identify new and emerging business opportunities that production and marketing of electric
cars may present to entrepreneurs and business executives. Identify and critically assess other
businesses currently linked to global automotive industry that you think may not be profitable
in long run to invest on...........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Automotive industry comprises of enterprises and establishment which is active in
improvement, marketing, designing, business and marketing of motor vehicles (Babrowski and
et. al., 2014). This is regarded as global ample economical body by revenue. It does not include
maintenance of auto-mobile like reparation store and motor substance fill place. In current
scenario, various changes has been faced by respective industry due to increase in need and
demand of consumers. It is very essential to make changes for surviving in competitive market.
This report is based on case study where Volvo cars has entered into electric vehicles for
providing services to users. It happened because of increase in demand of electrified cars and
meeting current and future needs of consumers. It highlights about forces and market analysis of
industry with helps of PESTLE along with changes took place in organisation.
MAIN BODY
a) Major forces shaping business environment of car manufacturing industry. Explain how
industry has changed in last few years. Critical assessment of organisational and other
changes that may take place in future and reasons for such changes. Discuss reason why
there is drive towards production of electric cars to position to gain competitive advantage
UK auto-mobile industry is recognised for global famed athletics automobile industry
like Volvo, Jaguar and others. In 2015, the turnover of automotive industry is 71.6 billion dollar
out of which 77% exported accounted to 12% of UK exportation. According to data of 2015,
100+ countries importing vehicles of UK, 81400 people are employed, 32 million car
manufactured and 2.25 billion invested in research and development (Casals and et. al., 2016).
The major forces which shapes business environment of car manufacturing industry is explained
with help of PESTLE analysis. They are explained below:
Political Factors- This factors considers rivalry laws, plan of action and statute law
affiliated to auto-mobile, taxations and so on. The government of UK is very supportive and
stable for car manufacturing industry. UK government assist weaker player with aid of AAP
(Automotive Assistance Programme). Car manufacturing industry is integrated and globalised
within EU. The Brexit issue has made worst impact on auto-mobile industry where 60% of parts
provided for auto was assembled in UK are imported. The governance has presented CO2

emission if any car company produces high CO2 then they will charge higher tax rate. Car
manufacturing company is regarded as major source of revenue for government.
Economic Factors- The factors related with economic are trade, income distribution,
inflation, wealth and so on (Hawkins and et. al., 2013). Car manufacturing companies are highly
affected by economic condition of nations. There is rise in number of crises in past and has
affected sales in developed countries. If there is positive change in economic then it leads to
create employment opportunities for individuals.
Social Factors- This factors includes households, transportation, income, age and others.
There are large number of people who are above 45 years who prefer vehicles for their personal
use (Gangale, Mengolini and Onyeji, 2013). It is an opportunity for car manufacturing company
to produce more and innovative cars for their consumers and users. The figure reflects 80% sales
from organisational structure and 20% from marketing organisations. In past cars were
manufactured for upper class people but now it is focusing all age income people. Auto-mobiles
plays an effective role in growth and progress of economies globally.
Technological Factors- According to given data, it has been concluded that UK auto
mobile industry is regarded as most innovative and unique producer of car and engine
(Hedegaard and et. al., 2012). They uses highly CO2 technology while manufacturing cars for
users. They have formed team called NAIGT (New Automotive Innovation Growth Team)
having 20 year vision to formulate engineering roadworthy maps for CO2 discharge hydrogen
and loose transport auto-mobile. Car manufacturing has gone through various stages of
innovation because of consumers as they are expecting more and latest accessories and features
for cars. The factor which affect car manufacturing is internet as consumers are more attached to
social media which creates difficulties for auto-mobile manufactures to go with global trends.
Legal Factors- There are some legal policies which should be followed by car
manufacturing companies such as fitment of electronic steadiness power and observation system
for pressure level. The safety of auto-mobile is considered as biggest concern for law maker
globally. There are some worldwide tendency in distinguished various regularize, regulation and
attribute standardized for auto-mobiles. Car manufacturing in underdeveloped state is increasing
rapidly but many of nation has regulation related to auto-mobile sector which makes difficult for
new organisation to start their business.

Environment Factors- This factor is related to petrol, gasoline usage, CO2 emission
(Kley, Wietschel and Dallinger, 2012). Auto-mobile is considered as biggest culprit which is
damaging to environment. The rise in knowledge of environmental issues leads consumers to
focus on effects of auto-mobile on environment. Due to this, manufacturer of car has started to
produce environmentally friendly cars which leads to slow down market shares. With rise in
time, there will be growing demand of environment friendly auto-mobile in future.
Apart from these above, there are also other environmental factors which affect auto-
mobile industry. The first factor is that car manufacturing company is dependent on massive
infrastructure that includes investments in roads and existence of fuel stations. If countries start
investing in public transport and disinvest in road then people buy few cars. Other factor is that
profitable cars tend to be luxury and inefficient cars. The sales of such cars depends on prices of
fuel. Apart from these other factors which affect car sales are increase in interest rates, currency
fluctuations, increase in cost and economic downturns. Many of car manufacturing company has
reduced labour cost through help of global supply chains.
There are various reasons which took place in future that drive towards production of
electric cars and position themselves to gain competitive advantages (Nunes, Figueiredo and
Brito, 2016). The increased in competition, stiffening legislation and cost stability leads to global
automotive value chain. The average car production is 200,000 units yearly which direct 3,000-
4,000 individual and economical revolution off reaches to 10 times steady. For maintaining age-
long fightness, establishment are seeking fresh methods for building conveyance for users at
global level. In 2020, the rising marketplace includes Asian country such as China, Brazil,
Middle East, which will equal more than 50% of worldwide transport capability stock certificate.
The main reason for adding new vehicles and power-train production is due to tariffs and non-
tariff obstruction.
There are four forces which will shape auto industry of country. The first is re-emergence
of fundamental which allows for much economic and effective usage of manufacture capability
for generating profits at less mass. Second is shifting in economic process centres due to
emergent marketplace that has strong growth prospects. Third is uncertainties of alternatives
power-trains which includes fuel cells, electric vehicles, other technologies, support of
government and others. Lastly is increasing interconnected supply chain which will force

industry for better worldwide interruption origin by various psychological feature like Japanese
Tsunami in 2011.
There is more changes in auto-mobile industry in next decade in last 20 years. The mix of
market leads to change sales of automotive industry. There are various changes which took place
in auto-mobile industry that are as follows:
Accelerating pace of disruptive innovation- 82% of auto-mobile manufacturing
organisations lack preparedness, resource alignment and execution for enabling faster change
(Pasaoglu and et. al., 2014). There is rapid innovation in car manufacturing across global level.
New entrants took place in market on frequent basis. Disruptions has turn cardinal to fast
development of quality system.
Battle to own relationship in digital market- 90% of auto-mobile initiate and fresh
characteristic are drive from physics that is accountable to 35% to 40% of average auto
manufacture price (Nykvist and Nilsson, 2015). The mobility leads to dominated by personal
vehicles and market is generating more revenues than vehicles. Here, mobility service providers
and auto-makers has to find innovative ways for retaining consumers loyalty.
Digitalization across value chain- US$6.5b consumers are anticipated to world gross
from auto joint work in 2024. The suppliers, auto-makers and connectivity leads leverage to
access vehicle data for driving innovation for revenue streams. With rise in digitalisation, it is
very important to drive value chain so that better outcomes can be achieved.
Securing resources for business continuity- There should be continuous innovation
which has developed new challenging in capturing precious IP from invention activities. New
technologies helps in driving business continuity along with success and growth of firm.
Diverse source of unpredictability- There are different sources which leads to change
auto mobile industry such as foreign exchange, financial market and raw materials and others
(Pasaoglu, Honselaar and Thiel, 2012). Apart from these factors, various changes took place in
country which leads to change in requirements of consumers and users.
Unprecedented scrutiny- It is very important for car manufacturing industry to do
continuous scrutiny of their business so that better results can be achieved in effective and
efficient manner. It is very important to check each and every things so that better results can be
achieved.

b) Identify new and emerging business opportunities that production and marketing of electric
cars may present to entrepreneurs and business executives. Identify and critically assess
other businesses currently linked to global automotive industry that you think may not be
profitable in long run to invest on
Electric Vehicles (EV) helps in making majority of new car sales globally by 2040 which
is accounted to 33% if all duty vehicles on road (Wolfram and Lutsey, 2016). As per research of
Bloomberg New Energy Finance, auto-maker are spending efforts for developing EV mainly due
to demand and requirements of people from Asian country such as China. The respective nation
has became global large champion of EV. Beijing is named to be 1 out of every 5 auto-mobile
selling in China for running alternatives fuel by 2025. There is highly increase in EV at
marketplace because of requirements of consumers. There are three main business opportunities
which are available for making profit in booming EV market. They are described below:
Providing public EV chargers through help of platform business model- The main
component for rising EV is because of availability of EV charger (Pollet, Staffell and Shang,
2012). Increase in number of EV chargers leads to mobile connectivity which will be sold in
market. There is rise in EV charging Stations installations which is anticipated to turn much than
12.7 million in 2020. This will create better business opportunities for EV manufacturing
industry. The EV charging station hardware cost from $1950 to $3000 which depends on brand
and features of machine. Providing of EV charger done horizontal surface concern exemplary
leads to assist consumers by preventing from use or payment of electricity. Users can use such
facility through QR code provided through mobile phone.
Partner with EV charging stations for providing one stop centre for charge and chill
experience- The charging of EV takes time as each and every parts of vehicle is charged. Tesla
has announced their plan for supercharging stations (Prud'homme and Koning, 2012). The
supercharging of Tesla is regarded as advanced technology in today's market. As it takes 30 to 40
minutes for fully charged. Apart from this, Tesla charging stations will take drivers for charging
cars. The manager of Tesla technology has said charging will contain 40 charge points where
driving force can lie backmost and turn and charge their cars easily. With providing of these
assistance for consumers to cost and chill has created other enterprise possibility and
enhancement of profits and gains. The organisation can create strategic partnership with EV
charger provider and setting up one ending centre for EV consumers to cost and chill while they

wait for machine to be full supercharged. This can be launderette, coffee-house complete with
eating place, film and buying complex. Therefore, this is great chance to existent selling on
increasing EV marketplace with help of plan of action human relationship or cooperation.
Providing battery disposal services- The increase in EV leads to create problems for
people and organisation in future time period (Wallace, 2017). The actual EV electric battery
application is small as mobile battery that uses lithium in it. It is regarded as controlling material
and required decent disposition act because of organisational surrounding. When EV battery get
invalid and needed substitution then it has to be sold in market. Specialised activities is regarded
as another business opportunity because of emergence of EV. Worldwide battery usage
marketplace is reaching USD 11.83 billion by 2022 at CAGR of 6.5% between 2017 and 2022.
This marketplace can be grow through increasing production of spent batteries from industrial
and motor vehicle root-age. The battery disposal services will cover both electronic devices as
well as EV.
The rise in number of consumers, agencies, urban developers, investors and so on believe
that Electric Vehicles (EV) will bring better outcomes for environment and industry (Zhang and
et. al., 2014). There are large number of opportunities available for respective organisation and
people for improving their EV to achieved long term benefits. Large manufacturer has
announced $24 billion for setting up EV by 2030. There are large number of car manufacturing
industry which combine sell 10 millions vehicles per year. Taxi and car sharing companies earn
high profits through EV. Their main target is to place 10,000 e-rickshaws and electric auto
rickshaws on road. Apart from the ola, uber and so on there are other sharing cabs which has
focused to rise number of EV at marketplace. There are policy intervention which has focused on
strict emissions target to shift to electric. For example, in Europe, manufacture has target to bring
transport discharge to 95 grams per km per transport by 2020. Other example is Sweden which
has focused to make fossil substance loose transportation system by 2030. The rise in number of
electric vehicles has attracted new start-up for initiation their business. There are various
companies which has merged together for new start-up of car manufacturing vehicles. Therefore,
rise in business leads to create employment opportunities for people. This car manufacturing
industry provide benefits in long term for consumers and organisation in order to achieve their
goal and objectives in an effective and efficient manner.

CONCLUSION
From the above report, it has been analysed that automotive industry is the fastest
growing in the market which helps in economic development of nations. There are different
factors which leads to shape business environment of car manufacturing industry. This includes
political, social, economic, technological, legal and others. It is very essential to analyse each
and every factors in effective manner so that changes can be made accordingly. The rise in
demand of people leads to increase in number of use of cars that helps in earning profits for car
manufacturing industry. There is production of electric vehicles because of various requirement
of consumers. This helps car industry to get competitive advantage at marketplace. The selling of
electric cars assist in emerging opportunities for those business to provide their services and
products at market. There is rise in global innovation of electric vehicles and make work fo
consumers to be easy and simple in long run prospective.

REFERENCES
Books and Journals
Babrowski, S. and et. al., 2014. Load shift potential of electric vehicles in Europe. journal of
power sources. 255. pp.283-293.
Casals, L. C. and et. al., 2016. Sustainability analysis of the electric vehicle use in Europe for
CO2 emissions reduction. Journal of Cleaner Production. 127. pp.425-437.
Gangale, F., Mengolini, A. and Onyeji, I., 2013. Consumer engagement: An insight from smart
grid projects in Europe. Energy Policy. 60. pp.621-628.
Hawkins, T. R. and et. al., 2013. Comparative environmental life cycle assessment of
conventional and electric vehicles. Journal of Industrial Ecology. 17(1). pp.53-64.
Hedegaard, K. and et. al., 2012. Effects of electric vehicles on power systems in Northern
Europe. Energy. 48(1). pp.356-368.
Kley, F., Wietschel, M. and Dallinger, D., 2012. Evaluation of European electric vehicle support
schemes. Paving the Road to Sustainable Transport. New York: Routledge, pp.75-95.
Nunes, P., Figueiredo, R. and Brito, M. C., 2016. The use of parking lots to solar-charge electric
vehicles. Renewable and Sustainable Energy Reviews. 66. pp.679-693.
Nykvist, B. and Nilsson, M., 2015. Rapidly falling costs of battery packs for electric vehicles.
Nature climate change. 5(4). p.329.
Pasaoglu, G. and et. al., 2014. Travel patterns and the potential use of electric cars–Results from
a direct survey in six European countries. Technological Forecasting and Social
Change. 87. pp.51-59.
Pasaoglu, G., Honselaar, M. and Thiel, C., 2012. Potential vehicle fleet CO2 reductions and cost
implications for various vehicle technology deployment scenarios in Europe. Energy
Policy. 40. pp.404-421.
Pollet, B. G., Staffell, I. and Shang, J. L., 2012. Current status of hybrid, battery and fuel cell
electric vehicles: From electrochemistry to market prospects. Electrochimica Acta. 84.
pp.235-249.
Prud'homme, R. and Koning, M., 2012. Electric vehicles: A tentative economic and
environmental evaluation. Transport Policy. 23. pp.60-69.
Wallace, D., 2017. Environmental policy and industrial innovation: Strategies in Europe, the
USA and Japan. Routledge.
Wolfram, P. and Lutsey, N., 2016. Electric vehicles: Literature review of technology costs and
carbon emissions. The International Council on Clean Transportation: Washington,
DC, USA, pp.1-23.
Zhang, X. and et. al., 2014. Policy incentives for the adoption of electric vehicles across
countries. Sustainability. 6(11). pp.8056-8078.
Online
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