Future Market Share for Electric Vehicles - Speech or Presentation Example

A Report on Future Market Share for Electric Vehicles Student’s Name Institutional Affiliation Introduction This report is focused on examining the development of the electric car industry and is solely directed towards Bayford Volkswagen Camberwell; a major car dealer in the country. It is meant to give a possible future direction of the overall growth and possible changes of the industry. The future of the car manufacturing is going to change for the better as most of the current car producers will likely adopt production of electric cars at affordable rates. The degree of customer behaviour has changed significantly to portray preference towards the use of electric vehicles. The term sustainable cars, these days, mostly means Electric Vehicles, which come in three forms that include; plug-in hybrids, battery electric (BEV) and fuel-cell electric, with most of these models being used in Canada. In fact, by the end of 2011, the EV market share of EVs was about 0.06% of the 51.1M light duty vehicles sold in the EUR and the US as a whole. Such attitudinal factors as the lower operational costs of adopting EVs over conventional ICE cars have continued to encourage its adoption. In 2015, the threshold of 1M cars was surpassed closing in at 1.26M. Ambitious set targets and a policy support has resulted to the lowering of vehicle costs, widened vehicle ranges and, also helps to eliminate possible consumer barriers in a substantial number of countries. Sectors and governments as well as initial adopters of this technology have continued to succeed in demonstrating to the public that electrical cars can effectively deliver the practicality, safety and affordability from them. Adopting EV technology for businesses is indeed an expensive affair. However, considering that most of the EV manufacturers already have an upper hand in conventional ICE technology; a continued decrease in demand even in the future will not result to closure of companies but rather, these companies can reverse to traditional production processes. The demand for Electronic Vehicles will increase in the future; a factor that calls for immediate designation of charging facilities; The Future of the Electric Vehicles Assumptions In close to 8 to 10 years to come, it is assumed that there is also going to be an enormous policy support framework put in place to increase on the overall market share of the EVs. It is presumed that the government and other non-governmental organisations tasked with reducing GHG emissions will engage in encouraging for development of charging infrastructures and rebates for homes with such platforms. With the much better current efficiency levels, electric cars will certainly provide lower running costs in comparison to vehicles that are based on ICEs. In essence, the future of car sales is likely to change in great length as consumers are likely to only focus on purchasing cars that will be technologically savvy and will have minimum levels of impact in relation to air pollution. Technologically savvy cars for this case means that they will be fairly incorporated with software and transform them into driverless cars. Consumer acceptance is deemed to be an important factor for continual success of a sustainable transportation industry (Egbue & Long, 2012). In this regards, the failure by EV manufacturers and policy makers to clearly ascertain and overlook consumer perceptions could result to low acceptance of EVs (Egbue & Long, 2012). In recent times, there has been an increase in the number of reasons that are based on adopting EVs, which include; an ever-rising and volatile gasoline prices and the underlying greenhouse gas emissions (Egbue & Long, 2012). The figure below shows how the adoption of Electronic cars has been adopted overtime; Being that most of the countries presented in the table above are developed, it can be argued that just like China and USA, Australia has also invested heavily in R&D, which is a factor that would improve the level of sales as the underlying customer-base is open for the idea of EVs. The retailer should note that it is set to benefit from the readily-available financial incentive and the expansive availability of charging infrastructures- factors that will almost guarantee a positive correlation of growth of electric vehicle market shares (Li et al, 2016). Financial incentive will ensure that the dealer enjoys tax reliefs for their efforts in engaging in EV manufacturing. Policies related to production of environmental-friendly vehicles would be encouraged by underlying government policies. It is clear that the future of the car manufacturing and thus, car retailing will be somehow focused on electric cars as demand for EVs continue to improve. ‘Experts predict Stronger Sales Growth’ Electric vehicle (EV) sales grew by at least 60% in the global market in the period between 2015/2016 according to Bloomberg New Energy Finance in their article; "Here's How Electric Cars Will Cause the Next Oil Crisis,’ which posit that EVs will account for more than 35% of new car sales worldwide by the end of 2040. Notably, electric vehicles are set to reduce overreliance on foreign oil importation that is greatly used in conventional ICE car models. This means that the dealer will benefit from this reliance as they would now have established a demand-base for EVs. As at now, there is more than 80% of the cost of a gallon of gas that leaves the entire US economy (EAFO (European Alternative Fuels Observatory) 2016). ‘Continued Sales Growth in UK indicates a Replication of the Same in Australia’ The popularity index of electric vehicles in the UK has significantly increased in the last couple of years with more than 100,000 plug-in vehicles now on the road in comparison to only 3,500 in 2013. The demand is attributed to a distinctive level of choice for drivers; a paradigm shift in public attitude towards EVs as well as constantly improving recharging facilities across the country. As a car retailing company, Bayford Volkswagen Camberwell, should now focus on putting proper mechanisms in place like expanding their distribution centres and equipping their sales personnel with the know-how of operating EV vehicles in order to ensure that they are not left behind whenever the electric car revolution amongst consumers is expected to take effect. It should also focus adopting top notch technologies like wireless charging to remain above competition. In relation to vehicle stocks, it is ascertained that the electric car inventories for most of the developed countries will reach 20M in 2020, which is a value that is 100 times larger than the 2010 estimates. The global electric car stock growth and development surpassed the 77% mark in 2015, with the number of electric cars now increasing more than ever in the preceding years (ACEA (European Automobile Manufacturers Association), 2016). Seemingly, the retailer is also set to benefit from this car stock growth especially when there are future expectations of more customers choosing EVs over gasoline cars. The table below shows a summary of policy support mechanisms for electrical vehicles set in place for a predetermined set of countries as at 2015; Possible restrictions on wider adoption of electric cars in the previous years include; a range of restrictions and overall vehicle costs. Both of these factors are associated with a higher cost related to energy storage technologies. In addition to these barriers, there are also restrictions relating to the need for accessing recharging facilities; their installation costs; and, also a relatively inefficient awareness level or confidence in the technology; being an imminent factor. The diagram below shows how the development of charging facilities has grown over time; It is important to note that the advantages related to EVs are associated with their ability to eliminate and possibly reduce pollution levels; a possible need for energy diversification and climate change mitigation and, also effective promotional signs that are observed in cost and performance developments in the recent period remain to be some of the most paramount drivers of the deployment of a significant number of policy support framework for the market overall uptake of electric cars (Thiel, Perujo, & Mercier, 2010). Basically, the electric vehicle market is expected to experience lots of pull factors that include; improved regulatory measures like tailpipe emissions policies and fuel economy standards, which will sometimes include possible credits deemed conducive for EVs. Link: http://www.huffingtonpost.com/entry/norway-ban-gas-powered-cars_us_57559c81e4b0ed593f14f4f6?utm_hp_ref=electric-cars There is also a clear aspect of such financial levers like vehicle taxation framework that is focused on fuel economy as well as other forms of instruments like possible waivers on parking fees and tolls. To effectively sustain company’s growth in relation to share market and sales; there will be a need to improve on the current product portfolio to accommodate electric cars like the current Volkswagen e-golf. Volkswagen Group, as a notable car manufacture, should now focus its efforts towards adopting newer production techniques like the one used in the generation of hybrid electrical cars in order to comply fully with the underlying government legislations. Certainly, there is a current trend towards production of intelligent car, which poses an exciting period of future production transformation where customer experiences are set to remain a top notch priority (PWC, 2017). In the process of adopting the sale of electric cars in the future, the possible bounds include; first, the presumption that the current logistic framework of the company in relation to the number of orders they can service at a given moment. Secondly, the level of awareness provided to potential customers in relation to the use of electric cars over conventional ICEs as well as the assumption that the adoption of electric cars penetration will dependent on the expectation that the fuel prices will continue to increase per each of the barrel purchased. Conclusion To sum up the discussion above, it can be noted that the future of EVs is indeed uncertain. Despite there being numerous efforts made to ensure that the direction of its adoption remains clear, there is still a lot of challenges facing the industry as a whole. In fact, such a retailer as Bayford Volkswagen Camberwell that has already with Volkswagen to sell EVs should conduct a thorough market feasibility analysis to understand its nature and thus, deliver EVs o the local market. The level of customer attitude towards EVs has shifted greatly to reflect a future of high demand. Thus, the retailer should put proper mechanisms in place like subjecting their sales personnel to training to equip them with EV-based information so that they can handle customer requests in a professional manner. References ACEA (European Automobile Manufacturers Association) 2016, "Electric and alternative vehicle registrations", www.acea.be/statistics/tag/category/electric-and-alternative-vehicle-registrations. EAFO (European Alternative Fuels Observatory) 2016, www.eafo.eu. 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