Electric Car Market Growth and Impact

The assignment explores the growth of electric car market, its potential to reduce greenhouse gas emissions, and the importance of government incentives in promoting electric vehicle adoption. It discusses various studies and research papers that have analyzed the impact of electric cars on the environment and the economy. The document also touches upon the challenges faced by governments and organizations in initiating this business, but concludes that with total development, there will be no obstacles in this process.

ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Changes in consumer supply with respond to price incentives..............................................1
Demand for electric cars response to prices in various markets............................................1
Electric Vehicle Market:.........................................................................................................2
Market for Electric Vehicle Charging:...................................................................................4
Market for Unleaded Fuel:.....................................................................................................5
Equilibrium prices of electricity cars:....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Saving natural resources have become main priority in environment. Therefore, initiative
have been taken by car manufacturing industries in relation with producing electric vehicles. It
will be an approach towards reducing costs as well as conserving natural resources, in respond to
this, present report will help in addressing current market scenario, obstacles relevant with
manufacturing and dealings in car market. The study will emphasis on demand and supply of
such electric vehicles in three markets such as Electric Vehicle Market, Market for Electric
Vehicle Charging and Market for Unleaded Fuel. However, there will be analysis on EV
techniques implicated by government in these countries and their initiative to secure
environmental health.
MAIN BODY
Changes in consumer supply with respond to price incentives
To manufacture or produce an electric car, there might be issues and obstacles which have
been faced by professionals in terms of analysing satisfactory wants of consumers. Along with
this, impacts of salaries and economic health of an individual also affect sales of commodities in
a market. The consumption of an electric car will be choice of people who can easily afford it, as
it will more expensive due to batteries used in it (Wolinetz and Axsen, 2017).
Charging cars and maintains expenses are comparatively higher. Naturally, if a rise in
prices of a commodity which will affect affordability and budgets of an individual and that will
reflect a reduction in demands for such product. Moreover, producers are required to considers
budget constraints of a buyer which will benefit in designing a product that will fit into
purchasing power of people (Kiani, 2017). Therefore, cost efficiency of buyers is needed to be
considered by professionals in terms of rising demand for electric cars in market.
Demand for electric cars response to prices in various markets
To analyse market reviews and operational efficiencies of organisation which are producing
electric cars. Thus, implication of various practices will help environment as well as bring cost
efficiencies to buyers.
It has been approached by government, to secure air environment in metropolitan and local
areas. Promotion of CARB-ZEV (California Zero-emission Vehicle) with aimed at reducing air
pollution which are affecting such locations (Palencia and et.al., 2017). It included Lo Angeles
1

and relevant areas. These are vehicle which were electronically operated entire driving process.
Thus, there will be no influences of natural resources except electricity.
Moreover, low-carbon fuel standard will be adequate and beneficial in terms of enhancing
this revolutionary approach. It requires oil refineries and distributor to ensure mixes to fuel they
sold in California which results in reducing greenhouse gats effects in environment. It has been
estimated that, rapid rise in electric vehicle market which will positively reduce 10% impacts of
greenhouse gases from this planet till 2020.
Moreover, there will be rise in exports of assembled car as well as import for raw material
become cheap (Daga and et.al., 2017). Additionally, recently government had planned to
implement new incentive policies in context with encouraging EV adoption among citizens
which will help in replacing expiring subsidies and push automakers for having aggressive EV
investment and manufacturing efficiencies. They have also subsidised local car producers in their
segmentation which were representing rapid growth in electronic market.
Electric Vehicle Market:
As per analysing economic scenarios and car markets stated in world where operational
determination had been payable over increasing demand and growth of such approaches. In
considering electric market which represents that it is a fastest growing sector in terms of
promoting resource conservation (Liu and Lin, 2017). They have presented that Chinese market
will have growth in production on these cars as well as there will be acceleration in production
and development in operations of manufacturer. There has been various plans and policies which
were imposed by government in terms of producing free trade zone in Shanghai which will result
in free tariff charges.
2

Figure 1 Electric car market growth in 2017
(Source: Electric Car Sales Are Surging in China, 2018)
Interpretation: On the basis of above listed chart which represent that electric car market
in various economics as well as growth they have retained in year 2017. Therefore, China is
leading market with 579000 of EV cars have been sold by them in a particular period. Similarly,
USA has been stated on second positioning with selling almost 198,350 units of EV’s.
3

On the basis of above graphical presentation it can be said that, there are chances of having
rise and fall in demand of electric cars in a coming period. However, it has been identifying that
prices of Electric cars are comparatively cheaper than that of bio fuel operated ones. It will
effectively result in rising demand of these vehicles in the future. Moreover, if producer goes to
add additional features such as rising costs of manufacturing etc. which will result in fall of
prices. Moreover, it has been estimated here that, there will be rise in sales of electric cars due to
higher convenience and satisfaction is being facilitated among buyers. Thus, it will require
effective strategy formulation as well as determination of current trends.
Market for Electric Vehicle Charging:
As per promoting use of electrical vehicles governments form various economies has to
develop Electric Vehicle charging station (Kiani, 2017). Moreover, units of electricity which will
be consumed by and engine has to be charged in limited duration. Similarly, for work station,
home and various locations there has to be development of such devices which will bring electric
energy for charging vehicles. Moreover, there have been various challenges which will be faced
by an electric vehicle manufacturing company such as Hydrogen gas cell vehicles. Moreover, it
charges of charging these automotive become higher than it will affect demands for electric cars.
In this case there will be inward shift of demand.
4

In considering the above listed graph which representa that, if the oprices of cahrging
electric cars rises which will affect the fall of demands fro these cars. In comprisison with the
vehicels which wrere being operated from bio fuel has higher cost than the electric cars (Lévay,
Drossinos and Thiel, 2017). Thus, it will help the producer to keep the cost in control which will
refelct inversely to demand curve. There is needed to have control over such charging rates
which will lead rise in revenue generation of firms which are producing electricity cars.
Market for Unleaded Fuel:
Moreover, there has been various issues which were had been faced by government with
respect to poor quality of fuel used in vehicles. It included mixer of lead with petroleum or
gasoline that have affect life of vehicles (Liu and Lin, 2017). Thus, it causes higher charges to
consumer in respect with repairs and maintenance of vehicle. Moreover, it increases costs of
maintenance and repairs incurred on a vehicle. In addition, as per considering such impacts there
have been development of various techniques and operational advancement in market which will
reduce such challenges (Palencia and et.al., 2017). Replacing gas cars with electric vehicles will
be a great approach towards minimising costs of repair and maintenance and there will be no
chances of having any mixer in fuel. Thus, electricity is never being of poor quality.
5

Electric cars are already come at lower prices in compared with petrol or diesel. Therefore,
lower costs these automotive have created the rise in demand which in turn positively affect rise
in sales. Bio fuel on other had costs higher costs of maintenance as well as charges of purchasing
fuel is also luxurious (The Electric-Car Boom Is So Real Even Oil Companies Say It’s Coming,
2017). Therefore, such things impact over rise in sales of electric cars. Along with this, various
other charges such as taxation, depreciation, fuel, insurance and maintenance of vehicle causes
negative impacts on budgets as well as economic conditions of business. On the other side, it has
been determined that lower fuel cost has been charges by pure electric cars. They only cost at
assembled body and battery which is inbuilt.
Equilibrium prices of electricity cars:
In context with promoting use of this Ozon-friendly approach there will be need of having
risen in demands (Morton, Anable and Nelson, 2017). Thus, in case of meeting the demands of
this vehicles there will be variations in prices which determines the rise and fall of supply.
6

In terms of the above listed graph which determined that, the equilibrium prices which are
needed to be considered by manufacturer in work are main relevant with the prices and demands
of it in market. To meet a certain price and demand there will be requirement of producing
commodities accordingly. The rise in cost will also creates reduction in selling quantity.
CONCLUSION
On the basis of above report, it can be said that, to reduce air pollution as well as enhance
environmental conditions there will be requirement of having effective rise in electric car market.
Thus, it will initially cost higher to government and to organisations which will initiate this
business. Therefore, after total development there will not be any obstacle in this process.
Further, it has been estimated that there will be growth in electric car market in coming period.
There will be reduction for 10% of greenhouses gases in 2020 as predicted by economists.
7

REFERENCES
Books and Journals
Daga, A. and et.al., 2017. Electric Fuel Pumps for Wireless Power Transfer: Enabling rapid
growth in the electric vehicle market. IEEE Power Electronics Magazine. 4(2). pp.24-35.
Kiani, A., 2017. Electric vehicle market penetration impact on transport-energy-greenhouse gas
emissions nexus: A case study of United Arab Emirates. Journal of Cleaner
Production. 168. pp.386-398.
Lévay, P. Z., Drossinos, Y. and Thiel, C., 2017. The effect of fiscal incentives on market
penetration of electric vehicles: A pairwise comparison of total cost of ownership. Energy
Policy. 105. pp.524-533.
Liu, C. and Lin, Z., 2017. How uncertain is the future of electric vehicle market: Results from
Monte Carlo simulations using a nested logit model. International Journal of Sustainable
Transportation. 11(4). pp.237-247.
Morton, C., Anable, J. and Nelson, J. D., 2017. Consumer structure in the emerging market for
electric vehicles: Identifying market segments using cluster analysis. International
Journal of Sustainable Transportation. 11(6). pp.443-459.
Palencia, J. C. G. and et.al., 2017. Impact of new vehicle market composition on the light-duty
vehicle fleet CO2 emissions and cost. Energy Procedia. 105. pp.3862-3867.
Palencia, J. C. G. and et.al., 2017. Scenario analysis of lightweight and electric-drive vehicle
market penetration in the long-term and impact on the light-duty vehicle fleet. Applied
Energy. 204. pp.1444-1462.
Wolinetz, M. and Axsen, J., 2017. How policy can build the plug-in electric vehicle market:
Insights from the REspondent-based Preference And Constraints (REPAC)
model. Technological Forecasting and Social Change. 117. pp.238-250.
Online
Electric Car Sales Are Surging in China. 2018. [Online]. Available through :<
https://www.forbes.com/sites/niallmccarthy/2018/06/01/electric-car-sales-are-surging-in-
china-infographic/#49809b98d1f7 >.
The Electric-Car Boom Is So Real Even Oil Companies Say It’s Coming. 2017. [Online].
Available through :< https://www.bloomberg.com/news/articles/2017-04-25/electric-car-
boom-seen-triggering-peak-oil-demand-in-2030s>.
8