Impact of Electric Vehicles on the Automotive Industry in Europe

Global Business
Environment-1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
External Forces............................................................................................................................3
PART 2............................................................................................................................................6
New Opportunities.......................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Electric vehicles (EV) came as revolution in automotive industry and became answers to
many problems concerned with automobiles. Automotive industry where internal combustion
engine was dominant industry has started to diversify its product portfolio. Almost every
automobile industry is engaged in developing electric vehicles and while this premium car maker
Volvo has announced electrification of its cars as its core of its future business. The article
“Electric vehicles on Europe: gearing up for a new phase?” is also based on electric vehicles and
contains discussion about electric vehicles in Europe. This report will carry out discussion and
analysis of forces which affect electric vehicles and what organisational changes will the
industry have to involve. Another part of the report will include discussion over new
opportunities which are available to automotive industry in for of electric vehicles and which
business and part of the business will discontinue after adapting electrification of its vehicles.
MAIN BODY
PART 1
External Forces
Pestle Analysis
Political- Political factor for electric vehicles is completely favourable and this is also an
opportunity for the industry that they can get support from the government. In this government
has proposed directive for alternative fuel infrastructure (Liao, Molin and van Wee, 2017).
Support of government for EV is not limited to infrastructure development to its varying degree
government is promoting EV across Europe through subsidies and other benefits.
Economic- Cost of EV is also favourable as cost of battery has dropped this will prove cost
efficient for the EV (Capuder and et.al., 2020). Increase in manufacturing volume has also made
favourable impact on the cost and economic aspect of EV.