Essay Example on The recent trend in purchasing electric cars








The purpose of this memo is to inform of the recent trend in purchasing electric cars The source of this information comes from InsideEV s and Plunket Research Ltd see the references and attachment 1 for statistics at the end of the memo As a company that only sells vehicles that run on gas we could expand our market and reach new consumers by making a new product Background It has been sold more than 2 3 million electric vehicles worldwide in the last three years Since 2010 and at the end of 2017 the sales of electric cars in the US have increased by over 280 Inside EV s 2018 The US government are also pushing manufacturers to offer electric vehicles to get the overall emissions down There are coming more external environmental factors that affect the car industry An example is the State of California where they passed a bill to cut greenhouse gas emissions to 40 below 1990 levels by 2030 Plunkett 2017 The market for electric cars are also increasing because the electricity is cheaper than fuel Other benefits are a more maintenance free vehicles than a combustion engine vehicles CEV It is starting to average CEV s on the range and people are more aware of the hazardous gasses CEV s are letting out and wants to contribute by buying zero emission vehicles The automobile industry is investing in more advanced battery technology to make more long range batteries at a lower cost The vehicles are also starting to look more like high powered computers on wheels

One of the most popular cars manufactures that only produce electric vehicles are Tesla They have offered a line of expensive luxury vehicles but have now introduced a more affordable model at a lower cost The Tesla vehicles can have a long range because of its unique battery strategy and are one of the best on battery technology Plunkett 2017 Alternatives As a pure gasoline car producer it is essential to adapt to the evolving market and there is a systematic pattern in the last couple of years that electric vehicles are on the upraise If we were to introduce a new product we would need a strategic plan based on our current resources We could implement a new strategic business unit SBU to estimate investment growth potential and risks by making a diversification for the new product We have to see the cost of creating a new car and develop a marketing plan on how we would target the new customers By making an electric vehicle we could accentuate our philosophy of social responsibility that could give us a green advantage Boone L E Kurtz D L 1999 Another factor that is important to think about concerning the electric vehicle would be where are the most profitable places to sell it Currently the State of California requires that 15 of all cars sold have to be electric or hydrogen powered by 2025 but many states don t have the warm weather

At the current situation electric vehicles lose performance in colder temperatures When promoting this product we have to think about where we are promoting the vehicle Cengage Learning 2017 2016 It is essential to consider the advantages and disadvantages for present and potential customers by entering a market that has other conditions and we have little experience The electric vehicle has been around for over 20 years GM launched an all electric car in 1996 and Ford invested 123 million in their all electric Think Therefore these companies will have an advantage compared to us when it comes to the technology they possess and how to produce an electric vehicle An alternative is to wait for the production of an electric car and instead invest in battery technology for a potential future vehicle Plunkett 2017 There is a market for electrical vehicles if we could offer a satisfying product for the customers But it s still an unknown factor what the price of implementing an entirely new production line would be and how long it s going to take at this time 

As mention above hydrogen is another zero emission technology that vehicles could someday replace the electric car It is currently not as popular as the electric due to the problematic method to harvest hydrogen We could do nothing and wait to see how different technologies and trends are developing before we start investing in battery technology or produce an electric vehicle Recommendations It is recommended to invest in battery technology so that we can implement newer and better technologies for our current and maybe future electric vehicles We could put ourselves in a critical position if we produce a new production line and a new car based on the current financial situation without having made a strategic or marketing plan The car industry is changing and by doing nothing the company is vulnerable to decrease in value and we will not be prepared enough to be in the new green car revolution Please let me know if you have other question

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