Electric Car Industry Analysis

The provided report presents a comprehensive analysis of the electric car industry. It highlights the significant contribution of the car industry to the auto-mobile sector, with governments also providing support by investing in this area. The introduction of new electric cars has led to a surge in demand, driven by environmental concerns. A PESTLE analysis and Porter's Five Forces are conducted to understand the external environment and gain competitive advantages in the electric car market.

The Car Industry
Worldwide

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1) Electric Vehicle in Europe: gearing up for a new phase....................................................1
(2) Business Opportunities.....................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global business environment can be outlined that in separate sovereign nations focus on
the environment in their countries that is influencing on their decision making on resource
utilised and capabilities (Shenkar, Luo and Chi, 2014) . There are including the international
interactions out of a company control that effect the operation of a business. Global environment
consist of trade laws that can influence to ability of business regarding to their resources from
several countries. The presented report based on the “Electric Vehicles in Europe” gearing up for
a new phase. To understand of this report Volvo is taken as example. It is famous brand in luxury
vehicles and subsidiary of the Chinese automotive company, Geely. The group of Volvo was
founded in 1927 as subsidiary of the ball bearing producer SKF. The report consist of different
forces, PESTLE analysis, Porters five forces. Along with define differences between previous
years and presenting years regarding to car industry.
MAIN BODY
1) Electric Vehicle in Europe: gearing up for a new phase
The adoption of electric mobility in Europe is driven by three main forces that is shaping
the business environment in car manufacturing industry such as consumer demand, industry
developments and government stimulus.
Consumer Demand – The demand of customers increase day by day and they wants to
new designs, brand and survive for long time. These three activities motivate companies to
manufactured new car design and fulfil the expectations of people. After observation are in line
with recent findings in Norway, where early selected are primarily high income, well educated
consumers who are looking to save money are afraid regarding to an environment. There are key
motives to early electric motors emerge such as Carbon footprint reduction, driving and usage
benefits and cost savings. To fulfil the demand of customers Volvo decided to launch electric
cars with good battery back up (Wetherly, 2014).
Industry Developments – To develop their industry and get competitive advantage most
of the companies followed new marketing trends. So this force also influence to provide shape of
car business environment. The number of electric vehicle model launches doubled in 2013
compared to 2012 and is projected raise by 50% in 2014. To develop their industry and get
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success Volvo has been launched new electric car to compete other companies who is already
dealing into electric car.
Government Stimulus – By offering a variety of incentives and other advantages, both
on the demand and supply side, politicians are supporting electric vehicle around Europe to
differing degrees. After the deducting emission of (both CO2 and NOx) is one of the cause but
other considerations also plays important role. The UK government provide many facilities so it
will be reason to launch new electric car (Black, Morrison and Gregersen, 2013). When
Government support to Auto mobile industry so it will influence to focus on the shaping of car
industry.
Changes in industry last few years - The last two years it has been getting that
noteworthy one of the automotive industry. As per the 2017 it is getting that electric vehicles are
using by every countries. It was landmark year for electric vehicles as global sales of battery
electric vehicles. As a result the market of EV share moved approx one percent of global car
sales. In present time Government also investing into EV infrastructure and mobility programs
for motivate for supply. For example, Estonia installed fast charges with the help of country and
assured about every city where predict that about 5000 inhabitation host at least one station. Few
years ago people did not take interest to sales out electric cards because customer demand of fuel
based cars but after some time increase pollution and government also participate to set
infrastructure of electric vehicle. There is analysing that in present time Volvo launched five
fully electric cars among the 2019 to 2021. The move is a natural progression for a car market
that has manufactured different hybrid concept cars since the 1992 environmental concept car
before presenting production plug in hybrid models in recent years. So after analysing that it is
understand there are coming many changes and now people prefer to electric car rather than to
fuel based car.
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Critical assessment of the organisation and other changes that may take place in the future
and the reason of such changes – According to this report it is defined that the status and
development of the electric car take mobility space in EU. After the applying new technology
apply new eco system to challenge of the business regarding to service solution. In present time
mostly companies followed the trends of “mobility as a service” embraced by both consumers as
well as OEMs. After the changes any company take good place in the market so there is required
to focus on trend things (Laudon and Traver, 2016) .
Positive Impact – After the changes companies has been getting advantage of competition and
focus on their strategy that can help to Maintain good position.
Negative Impact – It is also influencing in negative manner due to compete with other
companies who have already good position into the UK market.
Reason of drive towards the production of electric cars – The main reason behind the
production of electric cars, environment. In present time continuously increase pollution so it is
required to control it and maintain environment activities in efficient manner. After producing
electric cars focused on the their promotion and government also provide support to auto mobile
infrastructure. To understand the reason effectively conduct Porters five model in refernce to
Volvo in electric car -
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This model is based on the principle that the competitive strength and attractiveness of a
industry are determined by five forces. Such five-forces of Porter make it easier recognize where
authority resides in a company scenario. It is helpful in recognizing the intensity of the present
competitive situation of an organization and in evaluating the power of a situation an
organization might look like to shift into (Smith and Cockburn, 2013) .
Supplier power: An evaluation of how simple it is to inflate prices for different
suppliers. This is influenced by: number of vendors for each vital input, commodity or service
distinctiveness, supplier comparative size and power, and cost of shifting from one vendor to the
next. This context Volvo is required to analyse the potential power suppliers in auto-mobile
industry who may influence the production of electric cars.
Buyer power: An evaluation of how convenient it can be to reduce prices for customers.
This is guided by: the size of consumers group in market; the significance to the organization for
each individual client; and the purchaser's cost of changing from one provider to another. If a
company has only a few influential buyers, they can often determine terms. Such evaluation
would be beneficial for Volvo to determine features and price of electric cars.
Competitive rivalry: The primary driver is the industry's number as well as potential of
rivals. Many corporations will decrease the attraction of the industry by providing homogeneous
goods and services. Analysing this factor can assist Volvo in garbing potential competitive
opportunities.
Threat of substitution: Where near direct replacement or substitute products occur in a
industry, in reaction to price hikes, it improves the probability that clients switch to options. This
decreases both vendor power and industry attractiveness. Consideration of these viable may
provide a framework to Volvo for identification and minimisation of any possible risk from
substitute products (Burke, Trahant and Koonce, 2012).
(2) Business Opportunities
After the analysing of UK market it is getting that Volvo get many benefits into electric
car market such as – Electric car service garage = These services are wholly separate from the
internal combustion engine vehicle service. Open new electric vehicle charging station and
installed on the basis of standards that is accepted by the field where it is installed. Electric car
spaying workshop = According to this opportunity provide facility of painting of workshop that
would be connected with other business opportunity in reference to electric cars. There are
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focusing on the management of station where changing vehicles, if charging station increase so
focus on every station and arrange high management. These opportunities gained by the Volvo
and another entrepreneurs who wants top produced electric vehicles regarding to production an
marketing of electric cars.
PESTLE Analysis of Volvo electric cars – In present time auto-mobile industry face
different types of challenges due to increase competition in the market. In the more controlled
automotive company setting, global vehicle companies are looking for new ways to maintain
their company. Environmental groups are increasingly put pressure on vehicle producers because
they are eager to see vehicles that add more to protecting the environment than pollution. There
is analysing PESTLE analysis in reference to forecast possible drivers for alter that can sustain
business in the future (Rowell, 2017)
Political – Most of the developed countries focus on the occupancy rates for rider ship
that has been since very low due to introduce in front of the public. To add up government in
several countries like India are in discussion to levy higher tax on petrol as well as diesel to
disapprove the usage of the conventional fuel and to opt for public transportation as well as
personal vehicle. In present time Government invest money in auto mobile industry to develop
infrastructure in emerging markets and take help of commercial vehicle sales. There is also
taking permission from government authorities for the promotion of public uses. The main
advantage get of political system that they are also investing money and develop infrastructure.
The UK is politically stable and safe country regrading to electric cars. The Government has
been increased tax rates on the cars with higher carbon dioxide emission. It has selected extreme
tax policy to protect local auto-mobiles.
Economical – The auto mobile industry mainly influence by the rising prices of the fuel
and reduced by the performance of the car. The supply of skilled labour offers a framework for
the business to obtain employees for its commodity and the quantity of available revenue makes
the UK a significant target for Volvo. There are increasing prices affects to behaviour of
consumer due to increased demand of fuel efficient cars rather than electronic cars.
Social – Due to different social factors companies effected by the cultural, religion,
custom, values and social organisation. As a reason change perception of people increase sales of
electric cars and get advantage top compete in market (Shuman, 2013) .. The government also
motivated to people through subsidies and incentives to the customer to purchase eco friendly
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cars in the form of free parking and road tolls. The main disadvantage for the company to
changes perception of peoples regarding to luxury cars to fuel efficient small compact cars.
Technological – The factors of technology influence the rate of technology diffusion,
new invention and replacement of technology. In present time UK government also take
initiative to introduce of UK technology in renewable energy and developing electric vehicles.
Volvo has getting benefit of competition to manufacturing safety vehicles with low carbon. The
company did not effectively apply advanced technology due to this their rival company Toyota
introduce with advanced technology to changing environment to manufacturing fuel efficient
cars.
Legal – Due to passed new law regarding to environmental act provide many benefits to
Volvo in electric cars. After pass clean air act states has brought changes in consumer
preferences. Volvo has been focused on the safety while the external challenges involve reliable,
eco friendly and electric cars. After the introducing of electric cars in the market Volvo has not
shown a good sign on the revenues of the company (Boshyk, 2016) .
Environmental – In the UK, big size car increase pollution and effect to environment
through emitting carbon. Due to these causes creating problems in environment like pollution air.
Due to these reasons a company take appropriate steps to overcome from these problems. To sort
out the problem company has been launched electric car that can help to maintain environment
safe and pollution free.
These companies are selling out electric cars in auto mobile industry such as the Toyota,
Volvo, Jaguar, Porsche, Mercedes-Benz. Government also invest in other companies but get not
more benefit because Volvo has been introduced many electric cards even in series. They are
introducing with advanced technology which have not any other company in the market. So
government has been decided to invest into Volvo regarding to electric cars. These companies
are not effectively introduced new car with advanced technology and better compare to other
companies. So regarding to investment Invest In Volvo which is provide profit in long time.
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CONCLUSION
As per the above report it has been concluded that in present time car industry contribute
in Auto mobile industry and Government also provide support even they are also investing in
this. Volvo has been introduced new electric car so there is defining related things of this
industry. Last two years people did not purchase electric cars but now it is in treading and help to
safe environment. It is a big reason of produced electric car in effective manner and accept eco
system. There are conducting PESTLE analysis in order to know external environment regarding
to electric ar and porters five forces define that how to gain competitive advantages.
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REFERENCES
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