Business Proposal for an Electric Motor Car Company in Shanghai, China

This business proposal outlines the establishment of an electric motor car company in Shanghai, China. The proposal begins with a letter of transmittal to Net Credit Company, seeking capital for the venture. The company overview highlights the environmental and health concerns caused by fuel-based vehicles in China and presents electric cars as a solution. The introduction details the company's innovative features, including home and solar charging capabilities and modern interiors. The proposal addresses potential challenges such as the increased cost of electricity, resistance to change, and competition, along with proposed responses to mitigate these issues. It includes cost breakdowns for the new outlet, a plan to measure results through surveys and revenue analysis, and recommendations for the business. An appendix with a survey questionnaire and references are also provided.

Running Head: BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Business Proposal of Electric Motor Car
Name of the student
Name of the university
Author’s note

1BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Table of Contents
Letter of transmittal.........................................................................................................................2
Overview of the company................................................................................................................4
Introduction......................................................................................................................................4
Challenges........................................................................................................................................5
Increased cost of electricity.........................................................................................................5
Response..................................................................................................................................5
Resistance to change....................................................................................................................5
Response..................................................................................................................................5
Threat of the competitors.............................................................................................................5
Response..................................................................................................................................5
Costs................................................................................................................................................5
How to measure the results?............................................................................................................6
Recommendations............................................................................................................................6
Appendix..........................................................................................................................................7
References........................................................................................................................................8

2BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Letter of transmittal
Date:
From,
XYZ
Electric Motor Car Ltd
1234 Oxford Street
Prince George, BC
Canada
A6H 5K9
To,
Mr Adam Smith
Manager
Net Credit Company
6657 Boundary Road
Prince George, BC
Shanghai, China
A6M 5Z6
Dear Mr Adam Smith,
The motive behind writing this letter is requesting you to accept the business proposal of opening
a new branch of Electric Car Motor in the George Street of Shanghai. The proposal enclosed in
the will show you the detail of the need of the company in the proposed area. Since, China is
densely populated and more than half of the population is using fuel- based vehicles, which is
harmful for the nature. We aim to reduce the air pollution and help in the conservation of the
environment by increasing the use of electric vehicles.

3BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
The goal of writing this letter is to persuade you to and Net Credit Company to lend capital for
my new business proposal. My company would like to lease a property near the main street of
China for opening a new Branch for our electric car company. I have included the report of the
survey carried out by me, which outlines the evidences of the support of the community for the
use of electric car in China. The attached business report also shows the benefits of replacing
fuel-based vehicles and using electric cars. I am very thankful to the cooperation of the local
community for assisting me in my research proposal and for convincing my company and me
that the proposal is feasible for the community as well as the sustainable development.
Please feel free to contact me for further queries. Your feedback will be treated on priority basis.
Thank you for your valuable time and deliberation.
Sincerely,
XYZ

4BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Overview of the company
Electric motor car is an automobile company, which manufactures electric cars. The car
utilises electricity and is chargeable through solar energy as well. The car is chargeable through
the home electricity as well as the solar energy. The users of this vehicle do not have to depend
on any charge station for charging the device.
I have visited China few months ago and found that both the environment and people are
affected due to pollution caused by the fuelled vehicles. My observation after seeing the
environmental and the health conditions of the people is introducing electric car in Shanghai,
China. Because some researchers believe that continuous utilization of fossil fuel will result in
depletion of natural resources in the future.
Since, the electric car does not consume any fuel and helps in building eco-friendly
environment with the use of renewable energy resources. I succeeded in motivating and
influencing customers about the benefits of electric car. This would save the money of the
customers as well as help in the conservation of the environment.
The purpose of this report is to persuade the Net credit company to lend capital to start
new business outlet of Electric Car Company in Shanghai. Since, your company encourages
entrepreneurs for the business and provide constant support to the businessman for the
betterment of the society. I believe that partnership between Electric Car Company and Net
credit will be profitable for both the enterprises and it will also help both the companies to
contribute towards the nature.
Introduction
I am writing a business proposal to the Net Credit Company for funding the expenses
required for our new outlet in Shanghai, China. The cities of China are densely populated. Due to
this, there is huge consumption of fossil fuel. The result of this is seen as growing pollution in
the atmosphere which is not only harmful for the nature but also the health of the residents.
Due to increase global warming, the health and environment are badly affected and has
given rise to certain diseases. I think our company can contribute towards the conservation of our
nature.
The electric car has many benefits like it can be charged at home without going to any
charge station. The innovative interior of the car will give the customers a feel of the automobile
of the new generations. It has leather seating, touch screen display and wooden dash. Safety is
given priority while designing the car like for better safety while driving airbags with micro-
sense expertise are used.
The best part of the electric car is affordable prices that are offered to the customers. It is
under the reach of upper as well as middle class people. I think such kind of innovation will

5BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
make our company grow and flourish in the automobile sector. The innovation is leveraged with
all the modern technology and help in reducing the harmful emission. This invention will not
only benefit the nature but also improve the efficiency and structure of the transport system
globally.
Challenges
There are many challenges that I encountered during my survey. These challenges can act
as barrier for the business.
Increased cost of electricity
The battery is expensive and requires huge amount of electricity for charging. This will
add as an extra cost for the buyers. The rise in the price of electricity is a threat for the company.
Response
The battery used by our company has ultra-charging capacity, so it consumes less
electricity and adds fewer burdens in the electricity bill.
Resistance to change
Not all age group will be ready to adopt the new technology and it is very difficult to
convince people of certain age group especially the age group of more than 45 years of age.
Many customers do not accept the change easily because the development of any company
depends upon the willingness of its customers to buy or reject the product.
Response
The technology is designed for the comfort of all age group people like the comfortable
seat for old age, ultra speed for the youth and affordable for the middle class.
Threat of the competitors
Competitors of other electric car companies are biggest challenge for the Electric car
because there is intensive competition in the automobile industry.
Response
The price of the car in our company is less than its competitors. This will enhance the
sale as well as make the customer buy the new technology.
Costs
Costs associated with opening of new outlet are (in millions):-
Cost for lease of showroom $1500000
Licence $0.400000
Signage $0.200000

6BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Renovations $1000000
Work force recruitment $0.20000
Insurance $3000000
Taxes and registration $1850
5.50 million
Breakeven for monthly business:
Lease $1000000
Raw materials $2000000
Loan instalment $0.50000
Miscellaneous $0.25000
3.75 million
How to measure the results?
I conducted a survey for around two weeks in Shanghai. The survey was to observe the
response of people towards the electric car. Due to the harmful effects of fuel 80% people were
satisfied with the idea of electric car.
I will again survey and take the feedback of the customers, after few months of opening
of the company to find whether the company is able to fulfil the requirement of the customers or
not. And the other factor is the revenue of the company.
Recommendations
Based on the result of my survey, I strongly believe that the nature is under serious threat.
The level of pollution in the areas is continuously increasing. Therefore, I believe there is a need
of electric car in the society to build a sustainable environment.
I will be delighted in discussing this proposal with your company at your convenience.

7BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
Appendix
The survey will take minimum of five minutes. As a member of this community, I value your
opinion. I will try to help you regarding the use environment friendly vehicles in place of fuel-
based vehicles. Your opinion will be treated on priority basis.
1. Which area of Canada you live in?
2. What is your gender? Age?
3. How many miles do you travel? What is the mode of transport you use?
4. What is your current annual income?
Less than $ 25000
$26000 to $45000
$46000 to $75000
More than $75000
5. Do you own a vehicle?
Yes
No
6. How much you spend on fuel on monthly basis.
7. Do you feel fuel-based vehicles are damaging the environment?
Yes
No
8. Do you support recycling?
Yes
No
9. Do you thing having an electric car is advantage over fuel car?
Yes
No
10. Are you willing to buy an electric car?
Yes
No
11. According to you what should be the reasonable price of the electric car?
12. Do you think the electric car is environment friendly?
Yes
No
Thank you for your time and response.

8BUSINESS PROPOSAL OF ELECTRIC MOTOR CAR
References
Barbarossa, C., De Pelsmacker, P., & Moons, I. (2017). Personal values, green self-identity and
electric car adoption. Ecological Economics, 140, 190-200.
De Pelsmacker, P., Moons, I., & Barvarossa, C. (2016, January). A self-identity driven model of
electric car adoption and the moderating role of personal values. In International
Conference Marketing Trends.
Larson, P. D., Viáfara, J., Parsons, R. V., & Elias, A. (2014). Consumer attitudes about electric
cars: Pricing analysis and policy implications. Transportation Research Part A: Policy
and Practice, 69, 299-314.
Piyush, P., & Pandey, A. (2016). Use of Vibration Energy For Charging Electric
Car. International Journal of Mechanical Engineering and Technology, 7(2).
Sutopo, W., Fauzan, M. I. R., & Yuniaristanto, Y. (2016). A COMPARATIVE ANALYSIS OF
NATURAL FIBER REINFORCED FOR AN INTERIOR ELECTRIC CAR. Jurnal
Mekanikal, 39(1).
Zhgulev, E., Bozhuk, S., Evdokimov, K., & Pletneva, N. (2018). Analysis of barriers to
promotion of electric cars on Russian market. Engineering for rural development, Elgava
(Latvia), 17, 2110-2117.