MARKETING STRATEGY A startup company has decided to launch an electric car (eco car) and have asked you to advice on this proposed launch. Introduction: The automobile industry is India is one of the world’s largest industries, they are the 6t largest produces of passenger cars in the world. They have an annual production of 23.37 Million vehicles for the year 2014-2015. There are around 3,695 factories producing automotive parts in all of India. India is also a prominent exporter and is expected to have a strong growth in the future. India there is a need for fuel-efficient cars, which has been delayed by the auto industry in India if compared globally. A report by Frost & Sullivan put the EV market in India in 2013 at 125,257 units. It is estimated to reach 1.1 million units …show more content…
➢ Chances of failure in government schemes and incentives Porter’s Five Forces for Electric Car Industry in India • Threat of new entrants: HIGH ➢ Economies of scale ➢ High need for strong Product differentiation, as most of the electric cars are similar in features. ➢ Switching cost is high. ➢ High cost and time of entry • Threat of substitute products: LOW ➢ Fewer substitutes in this industry. ➢ Competition from Hybrid vehicles as they do not require high refueling structure. • Bargaining Power of Buyers: LOW ➢ Currently they have fewer buyers due to their high cost ➢ Choices are limited ➢ Hindrance on after sale service and performance • Bargaining Power of Suppliers: LOW ➢ Lack of ability to substitute in terms of technology ➢ Many firms rely on one or two automakers to buy a majority of their products. • Rivalry among existing competitors: HIGH ➢ Competition is expected to get intense due to more players entering the market including traditional manufacturers. SMART
The 1996 documentary Who Killed the Electric Car? explores the factors behind the demise of General Motors’ EV1, the popular and elusive electric car of the early 1990’s. The EVI was popular with the public, and it was clean, fast and efficient. This video sets out to solve what is effectively a murder mystery – the plug was pulled on the EV1 in 2002 after only 1,000 of these cars had been produced by GM, most of which were subsequently destroyed by the company in a secret location in the Arizona desert.
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
It appeared on the moon, the three lunar rovers electric vehicles left behind by Apollo astronauts. This electric vehicle bought up a vision to the big three car companies. The electric vehicle 1 created by automaker General Motors in 1996, but it didn’t work out because of the car so expensive and low mileages. By the twenty-first century, Toyota released their new model-Prius in 1997. Toyota prius is a hybrid electric car power by a small engine and an electric battery. As science and technology develop, the motor company of Tesla introduced the new model of model s in 2010. According to Thomas Riggs (2016), the author of Electric Car, “The all-electric luxury sports car runs entirely on a battery-powered electric drive system, can last up to 200 miles (322 kilometers) on one charge, and can go from 0 to 60 miles per hour (0 to 97 kilometers per hour) in 3.7 seconds.” (p.153). This successful electric car built by Tesla has proved that a new age of electric car is coming.
When the Tesla Model S was first released, Consumer Reports named the Electric Vehicle (EV) the most remarkable auto ever tested. The consumer protection publication; that has been looking out for their readers since 1936; said that the Flagship vehicle from Elon Musk’s Motor Company, was essentially flawless. Its performance on the track and in safety testing was second to none. However, due to a drop in quality class; from average to below; the Tesla Model S has been removed from Consumer Reports’ Recommended List.
...rther then the end of 2010, the introduction of the electric car is not far to come. With proper government regulations and consumer knowledge, adoptability of the electric car is possible. However, one can drastically differ in opinion as to why the required elements to support such a vehicle were not readily planned to facilitate such a change. The inadequacies draw wavering concerns for both consumers and business looking for the return of value and profit. The larger picture needs to be remembered in which oil is not a renewable resource and results in pollution and environmental hazard. Consumers and business must work together to overcome the roadblocks down the road and support each other in the introduction of and future of the electric car. Adjustments will have to be made on both sides to ensure success and minimize the society and economy disruptions.
“What we need to do is really improve energy efficiency standards, develop in full scale renewable and alternative energy and use the one resource we have in abundance, our creativity.” (Lois Capps) There are many ways we can utilize our abundance of creativity. Some have yet to be discovered, but some are being sought out today. One of these is the rise of the electric car. Despite a rough start competing with petroleum cars, electric cars will see a spark in popularity in the automotive market within the next few years with new models being developed and more charge stations being installed world wide. With more efficient ways of harvesting energy, the electric car will see more practical use and make its way into the lives of the average
...t of the electric car for the economic and practical benefits that would reinvigorate the country and make life easier for everyone. Upon revisiting the original question to this essay, the electric car is a worthy solution to our energy crisis and proves to be an economically responsible car. Its long-term cost savings outweighs easily improved flaws. However, in order to better understand the work done by scientists, research must be done specifically on the predecessors to the electric car and determine how those have stood the test of time. This will be done in order to help predict how the electric car will survive in the world. The future may always have a hint of uncertainty, but if scientists, governments, and drivers implement the new car with care, the goal of a smooth transition from fossil fuels to renewable energy sources can finally be achieved.
Portfolio Project: Tesla Motors Case Study Tesla Motors (Tesla), founded in 2003 by Elon Musk, is an automotive company focused on enhancing Electric Vehicle market by creating optimum performance, all electric, vehicles for every class of consumer (Tesla Motors, 2015). In order to achieve such ambitious goals, Tesla Motors not only designs, but also manufactures, and personally sells the company’s electric vehicles (Hirsch, 2015). As additional quality assurance, Tesla Motors also designs, manufactures, and sells, electric vehicle power-train components, and battery products (Hirsch, 2015). Yet, despite the pivotal role Tesla’s self curated products play in the success of Tesla’s vehicles, the socially responsible company does not privatize Apart from Musk’s concise vision statement Tesla has a truly inspiring mission statement, “At the core, Tesla Motors believes that electric cars should not be perceived as a sacrificial mode of transportation. Tesla Motors has brought the best of both the automotive and technological worlds together by permanently etching the image of electric cars being a step backwards in performance, efficiency, and design” (Tesla Motors, Chiefly, and most apparently, it is the goal of Tesla Motor to generate demand for Tesla vehicles (Andrade, Holloway, Payne, Roy & Sheffield, 2015).
Currently electric vehicles are slowing becoming popular with some already on show room floors. Furthermore, there are many enthusiasts and groups that have really been pushing their use. Tough these cars do not share the same performance qualities of some gas-powered cars; the current technology has been rapidly catching up. Hybrid vehicles have offered in some ways the best of both worlds. The cars are environmentally friendly yet offer the power and distance capabilities of other cars on the market. Furthermore, there have been many ways of supplying electricity to the cars including home-rechargeable batteries and hydrogen power. Electric vehicles are a definite possibility for the future because they have the lowest emissions while driving.
Electric cars are becoming increasingly more necessary, and have more advantages than disadvantages. Electric cars help to decrease the noise, pollution as they are much quieter. They do not emit any (or much less) carbon emission than petrol cars. Electric vehicles are the greenest mode of transport in the personal transportation industry. For each litre of fuel used in an engine produces more than 2.5kg of CO2. CO2 will be produced by an electric car but still a very little amount. It is also possible to use renewable power or a green energy supplier in the electric car. Thus it would lead to less polluted and safe working environment for all of us. However, safety is a big concern with using vehicles. The fluids in the batteries actually take impact better than a fully made gas car because it is not that flammable. Petrol cars and diesel cars are more flammable than electric cars so they are greater of taking impact in the event of an accident. I think that this is a very good reason because fewer people would get injured or hurt. This would save money because electricity is cheaper than gas and electric cars are easy to operate. Also is very ECO –friendly which mean that it is cheaper to run and have to pay very little road tax. In a pure electric vehicle there’s nothing combustible and have far fewer moving parts than you would find in a petrol or diesel car.
doubtful that electric cars will ever enjoy the range or performance advantages to which auto
There is no doubt that electric cars are the most appealing from of transportation in the world. They provide two of the most important key points of good transportation: reliable and efficient. They are reliable due to their simplicity of their power trains and the advancement of technology they have. They are efficient because they don't use any gasoline and because their motors can pass the zero-emission standard. Even though they may seem like a boring form of transportation, they offer good features that help keep the Earth's air clean and they help reduce pollution.
The Capital investment, skilled and licensed labour force, technological advancements, working with good quality suppliers is considered big barriers of entry into this industry. The future requirement of electric cars and hybrid vehicles has opened this industry to some new entrants like Tesla.