How Have Environmental Regulations Affected The Way

How have environmental regulations affected the way manufacturers
design and produce vehicles to accommodate consumer needs? And
what does this hold for the future of the automotive industry?
Name of the Student
Name of the University

Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research I have learnt various concepts, models and theories. I first thank to the almighty God.
After that I want to thank to my supervisor ______________ who is my philosopher and guide. I
also thank my parents for being supportive and accommodative for completing this research. I
want to thank my friends for giving me the moral support while conducting this research.

Abstract
This research will focus on the changing environmental regulations that have been forcing
manufacturers for innovating in automobile industry. Automobile industry has been facing
difficulties with the change in the market trend. Recent years have shown interest in pollution
less vehicles with enhanced technologies. During the very early stages of the automotive industry
a lot of the production was done by hand, mainly using a craft and guild, which is where workers
would make products by hand, this would usually ensure build quality, but would be very time
consuming, and costly. Many automobile companies have been facing loss in the market due to
enhancement of technologies in the market. Previous studies related to the environmental
changes have been studies in this research. The impact on automobile industry due to
environmental changes have been discussed in the research.
The research will gather primary data from conducting an interview with employees of BMW for
gathering information about how company has been inspiring innovation and change in the
industry. Data will be analysed with qualitative data analysis method. The research will follow
all ethical considerations. Results and outcomes will follow objectives of the research.

Table of Contents
Acknowledgement...........................................................................................................................2
Abstract............................................................................................................................................3
Chapter 1: Introduction....................................................................................................................7
1.1 Introduction............................................................................................................................7
1.2 Research Background............................................................................................................7
1.3 Research Rationale................................................................................................................8
1.4 Aims and Objectives..............................................................................................................8
Chapter 2: Literature Review.........................................................................................................10
2.1 Introduction..........................................................................................................................10
2.2 Concept of Environment......................................................................................................10
2.3 Environmental issues for Automobile Manufacturers.........................................................11
2.4 Emission standards and environmental institutions across the world.................................12
2.5 Environmental regulation affecting design of vehicles.......................................................13
2.6 Concept of Electric Vehicles...............................................................................................14
2.7 Theoretical Framework........................................................................................................16
2.8 Changes and Challenges in the automobile industry...........................................................16
2.9 Summary..............................................................................................................................18
Chapter 3: Research Methodology................................................................................................19
3.1 Research Philosophy............................................................................................................19

3.2 Research Approach..............................................................................................................19
3.3 Research Design..................................................................................................................20
3.4 Data Collection method.......................................................................................................21
3.5 Sample Size and Sampling technique..................................................................................21
3.6 Data Analysis Method.........................................................................................................21
3.7 Ethical Consideration...........................................................................................................22
Chapter 4: Data Findings and analysis..........................................................................................25
4.1 Introduction..........................................................................................................................25
4.2 Interview..............................................................................................................................25
4.3 Analysis...............................................................................................................................28
4.4 Summary..............................................................................................................................33
Chapter 5: Conclusion and Recommendations..............................................................................34
5.1 Research Contribution.........................................................................................................34
5.2 Recommendations................................................................................................................36
5.3 Limitations...........................................................................................................................37
5.4 Further research...................................................................................................................37
References......................................................................................................................................38
Appendices....................................................................................................................................43
Appendix A – Consent Form.....................................................................................................43
Appendix 2: Interview transcript...............................................................................................45

Chapter 1: Introduction
1.1 Introduction
This chapter of dissertation introduces research topic. The main reason behind conducting
this research is also discussed in this chapter. This chapter details background of research study
to deliver purpose of research study then the research rationale is discussed. The key aims and
objectives of research is discussed in this chapter to allow the readers to know the importance of
the research topic in these recent days. The last section of the introduction chapter provides an
overview of project which allow the readers to know the structure of research study.
1.2 Research Background
The automobile industry has been the largest manufacturing sector in the world. The automotive
industry has been facing issues with changing market trends in recent years. There have been
continuous changes in the needs and expectations of customers in the market. In past years, low
budget vehicles have been great priority in the market. However, it has changed in last five
years. As per research done by Kopelias et al. (2020), technology has been recent changes in the
market. Various vehicles with advanced technology have been developed in the market. Now a
days, vehicles need to be environmental friendly which create low pollution. There have been
various environmental regulations acting in the design and development of the automobile
industry in the market. Under Environment Protection Act 1990, pollution has been main
concerned topic. The UK government has been strict with regards to the low pollution in the
environment (Bellos, Ferguson and Toktay 2017). Therefore, various companies have been
facing issues with development of their designs of vehicles. Several companies have been
utilizing Open Innovation that can be used in the market. In the new era of innovation and

development in the automobile industry, several environmental regulation have been changed in
due course. Several companies including BMW and Toyota have been changing their designs
according to the change in environmental regulations. Toyota and tesla have been working on the
technology of electric automobiles and automated automobiles (Ramanathan et al. 2017). This
technology has been helping in low pollution in the environment. Toyota has been making usage
of Disruptive Innovation theory. Therefore, this research has been focused on changes in design
of vehicles due to environment regulation modification.
1.3 Research Rationale
The main problem discussed in this research has been related to change in the environment
regulations and its effect on design of the vehicles in automobile companies. Various
environmental regulations have been creating issues for the automobile companies for changing
their designs and development of their vehicles. Companies have to invest more amount in their
research and development department for modifying their designs of vehicles. This have been
causing issues for new companies in the automobile sector (Dechezleprêtre and Sato 2017).
Various companies are not able to change their design of the vehicles according to changes in the
environmental regulations.
1.4 Aims and Objectives
The aim of the research has been focused on changing environmental regulations affecting
designs of vehicles for meeting customer needs.
Objectives are as follows:
 To identify designing process of automotive vehicles
 To identify regulations that these companies abide by