Analysis of the Luxury Electric Vehicle Market: UK Market Report

This report presents a comprehensive analysis of the UK luxury electric vehicle market. It begins with an introduction to the product, emphasizing its value proposition and differentiation as a high-end offering. The report then delves into market factors, including market size, growth, value, and forecasts, supported by figures and data from various sources. The market size section highlights the global and UK electric vehicle market values, with projections up to 2025. Market growth is examined through sales figures and registration data, demonstrating the rapid expansion of the electric vehicle market. Market value is discussed in terms of the importance of product value to potential customers. The second part of the report will include competitive rivalry, buyers, suppliers, substitutes, and potential entrants. The report utilizes data from 2017-2019 to support its claims, presenting a detailed overview of the luxury electric vehicle market in the UK.

Running head: MARKETING
Entrepreneual Opportunity
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction............................................................................................................................3
Market Size............................................................................................................................3
Figure No 1: Global Electric Vehicle Market........................................................................4
Figure No 2: No of Electric Car Registrations in UK............................................................4
Figure No 3: Electric Car Market Statistics in United Kingdom...........................................5
Market Growth.......................................................................................................................5
Figure No 4: Passenger car sales around the globe................................................................6
Figure No 5: Rise in Electric Car Registrations in United Kingdom.....................................7
Market Value..........................................................................................................................7
Market Forecast......................................................................................................................7
Part 2..........................................................................................................................................8
Competitive Rivalry...............................................................................................................8
Buyers....................................................................................................................................8
Suppliers.................................................................................................................................8
Substitutes..............................................................................................................................9
Potential Entrance..................................................................................................................9
References................................................................................................................................10

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Part 1
Introduction
The report is based on the study of the market and the inclusion of data related to the
introduction of a new electric Automobile in a new market. The car selected for the
production and launch is based on a luxury platform and has targeted a specific group of
people who will definitely show keen interest in the luxury car and will be able to easily
afford it. The first part of the report highlights the market factors like size and value while the
second part focuses on the external analysis of the new car in the market.
Market Size
The new luxury car will be launched in the UK market in the coming year by ABC
Automobiles Limited. The new car will be based on an electric platform and promises to
fulfil all the criterion that are fulfilled by a normal car run on petrol or diesel. The global
electric Vehicular market was valued at $118,864.5 million in the year 2017
(alliedmarketresearch.com 2019). The estimated value of the electric car market is expected
to reach a whopping $ 567,299.8 million by the year 2025.

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Figure No 1: Global Electric Vehicle Market
Source: (alliedmarketresearch.com 2019)
According to, nextgreencar.com (2019) detailed reports the luxury electric car market
size will amount to 229.09164 million U.S. dollars in the current year of 2019.
Figure No 2: No of Electric Car Registrations in UK
Source: (nextgreencar.com 2019)

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Apart from the favourable electric car market size, the availability of different spare
parts for electric vehicles and the availability of plug in models of cars presents the ideal
market for ABC Automobiles to launch their maiden electric car in UK.
Figure No 3: Electric Car Market Statistics in United Kingdom
Source: (nextgreencar.com 2019)
Market Growth
The growth of the electric vehicle market has seen a revolutionary change in the last
few years with a rise in the sales of plug in as well as battery operated electric vehicles. The
figure of the sales of these vehicles stood at around close to 800,000 units across the globe.
The below figure shows the amount of vehicles sold. The figure clearly highlights the huge
rise in the amount of the cars in the year of 2018.

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Figure No 4: Passenger car sales around the globe
Source: (deloitte.com 2019)
The management of ABC automobiles will be boosted with the above figures.
However, the satisfying point which provides ultimate satisfaction to the company will be the
similar growth in the UK market. There has been a rise in the sales and registration of electric
models in UK for the past few years that has helped the management of the company to move
ahead with their new model “ABC Sentra luxury electric car”. The overall growth of the
United Kingdom Electric vehicle Market is estimated to be at a robust CAGR rate of 14% by
the year 2024. The below figure highlights the rise in the sales of these cars in the UK
market.

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Figure No 5: Rise in Electric Car Registrations in United Kingdom
Source: (nextgreencar.com 2019)
Market Value
The management of ABC Automobiles has to consider an important aspect before
entering the UK luxury electric car segment. The current value of the UK electric car market
stands at million dollars and therefore the company must present a proper value of the car to
the potential customers. The management must prove the customers about the efficiency of
the new car and its luxury features. The proper description of the value and the efficiency of
the car helps the management to ensure the profitability of the car in a proper manner.
Market Forecast
According to current estimates the value of the electric car market is expected to reach
a whopping $ 567,299.8 million by the year 2025. The forecast here thus clearly highlights
the huge potential of the electric car market in the near future.

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Part 2
Competitive Rivalry
The presence of a large number of established and reputed electric car makers in the
UK automobile market presents a tough field for the ABC Automobiles to make “ABC
Sentra luxury electric car” profitable in the market. BMW UK limited, Colt car company,
Mercedes Benz, Audi and Ford will provide a steep competition to the new car of ABC
automobiles (Lévay Drossinos and Thiel 2017). The mentioned car companies are well
established as because most of them are traditional car makers and have a strong range of
experience in the UK market. The management of ABC automobiles has to formulate a
strong strategy in order to ensure the success of the new car in the UK market. However, the
launch of the new car in the luxury segment presents a strong opportunity for the company as
because there are a few cars which are placed under this segment in UK.
Buyers
The buyers of “ABC Sentra luxury electric car” have been identified by the
management of the organization well before the launch of the car through the conduction of a
market survey. The market survey had helped the management to sort out the specific range
of the customers who will be showing keen interest towards the car. Around 12% of the
selected people surveyed has been termed as the potential buyers. The amount stands at 80
people who have shown real interest for the car.
Suppliers
There are a large number of suppliers present in United Kingdom for providing
different parts to assemble for that of the electric cars. There are around 223,000 plug in cars
currently in UK with the presence of around 8500 vans and 130 plug in models
(nextgreencar.com 2019)

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. The presence of close to 25,000 charging points in UK makes it even easier for the company
to launch the vehicle because of the presence of the adequate infrastructure. The growth of
the electric market has also facilitated the rise of a number of secondary industries like that of
electric batteries, plug in points, parts of the vehicles and many more as such (Morton Anable
and Nelson 2017). Thus suppliers are an important factor to the launch of the new vehicle in
UK.
Substitutes
There are a large number of electric vehicles in UK as companies like BMW, Jaguar,
Mercedes, Ford and Renault have a large number of models based on the electric platform.
However, there are a small number of vehicles in the luxury electric category with only three
to four such models available. According to, Bergman Schwanen and Sovacool (2017) this
presents a golden opportunity to the management to ensure a smooth launch and profitability
for the new car.
Potential Entrance
The management of ABC Automobiles has selected a new format to entry into the UK
automobile industry. The company has decided to partner with an existing company which
will provide ABC Automobiles with the infrastructural and logistical support in the United
Kingdom. The new strategy will help establish “ABC Sentra luxury electric car” into a
profitable car within some 2 to 3 years in the future.

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References
Alliedmarketresearch.com. (2019). Electric Vehicle Market Size, Share & Growth | Industry
Forecast 2025. [online] Available at: https://www.alliedmarketresearch.com/electric-vehicle-
market [Accessed 16 Aug. 2019].
Bergman, N., Schwanen, T. and Sovacool, B.K., 2017. Imagined people, behaviour and
future mobility: Insights from visions of electric vehicles and car clubs in the United
Kingdom. Transport Policy, 59, pp.165-173.
Deloitte (2019) New Market, New Entrants, New Challenges. Battery Electric Vehicles.
Www2.deloitte.com.(2019).[online]Availableat:https://www2.deloitte.com/content/dam/
Deloitte/uk/Documents/manufacturing/deloitte-uk-battery-electric-vehicles.pdf [Accessed 16
Aug. 2019].
Lane, B. (2019). Electric vehicle market statistics 2019 - How many electric cars in UK
&#63. [online] Nextgreencar.com. Available at:
https://www.nextgreencar.com/electric-cars/statistics/ [Accessed 16 Aug. 2019].
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.
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.
Nieuwenhuis, P., 2018. Alternative business models and entrepreneurship: The case of
electric vehicles. The International Journal of Entrepreneurship and Innovation, 19(1),
pp.33-45.

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Palmer, K., Tate, J.E., Wadud, Z. and Nellthorp, J., 2018. Total cost of ownership and market
share for hybrid and electric vehicles in the UK, US and Japan. Applied energy, 209, pp.108-
119.