The electric vehicle industry has existed for many years, serving as an alternative for consumers in many cities. There is a high demand in the electric vehicle industry as China is the most polluting country in the world. Chinese investors want to buy electric vehicle makers from Europe with the aim of manufacturing cars in China through a technology transfer to address the Chinese market.
Research Objectives
LITERATURE REVIEW
The Electric Vehicle Industry
The International Economic Development Council's research project Creating the Clean Energy Economy: Analysis of the Electric Vehicle Industry (2013) is another interesting report. There is the study on socio-economic aspects of electric vehicles: a literature review in evolutionary paths to the mobility patterns of the future (Hanke, Hülsmann and Fornahl, 2014). For a successful market introduction, technical feasibility, ecological impact or customer acceptance of the products must be answered.
Electric Vehicle in Chinese Market
The China Electric Vehicle Industry Report provides industry executives with important strategic information, analysis, insight and projections about the competition on the competitive pattern and leading companies in the industry, essential for developing and implementing effective business, marketing programs and R&D. There are several explanations in terms of market segments from this report that clearly identifies the trend and competitors in the Chinese market. At the same time, companies affected by the policy are expected to turn to the development of EREV (electric range vehicle extended).
Another recent article is McKinsey & Company's article “Supercharging the Development of Electric Vehicles in China.” (Gao et al., 2015). It then seeks to formulate a series of questions and options to inform discussions about the policy framework needed to enable electric vehicle development in China. The analyzing government policies in China and other countries can be summarized as follows: By providing consumers with greater choice of electric vehicles, both imported and locally produced battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) , the demand for electric vehicles can be stimulated. promote competition.
Current EV situations, including market sales, charging infrastructure, performance and battery policies in China - Purchase behaviors are influenced by four factors: charging concern, short battery range, cost and psychological factors Impact of government policy . The five competitive forces of the Chinese electric vehicle industry and the effect of government policies on the Chinese electric vehicle industry. China's Current EV Ecosystem - Giving consumers more choices in EVs, both imported and domestically produced battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), can stimulate demand for EVs.
The government has an important role to play in working with the automotive and utility industries and other infrastructure.
The Relevant Theory
Political Factors: It all comes down to how and to what extent the government intervenes in the economy. It is clear that political factors often affect organizations and their operations. Organizations must be able to respond to current and anticipated future legislation and adapt their marketing policy accordingly.
Economic factors: Economic factors have a significant impact on how an organization does business and also how profitable they are. Factors include economic growth, interest rates, exchange rates, inflation, consumer and business disposable income, etc. These factors include population growth, age distribution, health awareness and career attitudes and so on.
These factors are of particular interest because they directly affect how marketers understand customers and what drives them. Technological Factors: Given the rapidly changing technological landscape, this affects the way products are marketed. Environmental factors: These factors have only really come to the fore in the last fifteen years.
They have become important because of the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets of governments (this is a good example where one factor could simultaneously impact classes like politics and environment can be). time).
RESEARCH METHODOLOGY
Conceptual Framework
The second part is to suggest possible strategies to investors to transfer technology to China. In this part, the researcher creates many alternative ways for investors according to the business opportunities that were found in the first part. The strategies aim to help sustainable growth in the business industry, which includes both short-term and long-term strategies.
The last part of the research is to identify the potential targets or the partnership candidates who are interested in the project. This part is the practical implementation of the real business case of this company project.
Research Method
The researcher started with general research by scanning and searching the Internet in all countries except China. After the general research, the researcher did the specific research focusing on the specific countries that have matured in the automotive market; such countries include France, Germany and the United Kingdom. To find the potential target, the researcher sets filter criteria to delete certain companies from the lists.
At the end of the step of identifying potential targets, the researcher contacted each company directly and explained the project to find the interested target.
RESEARCH FINDINGS
Analysis of the Electric Vehicle in Chinese Market
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
The current situation of electric vehicles in China in the economic perspective is increasing in , both for consumers and the government. In the social point of view, the researcher mainly discusses the consumer concerns, preference and expectation in the Chinese electric vehicle market. The research study on the preference of generation Y (Deloitte, 2014) showed that the top purchase criterion when choosing a car for the generation born in the 1990s was safety (54%), exterior design (47%), price ( 39%) is ) and quality (38%).
It's not just advances in battery technology, but also investment in charging infrastructure to strengthen the electric vehicle market. Regarding the environmental issue in China, the researcher focused on the high level of pollution, which is the biggest problem in the city. Considering the high level of pollution in China, it creates an opportunity for the growth of the electric vehicle industry in China.
The legal issue of the electric vehicle in China is governed by government policy. In conclusion, the analysis of the electric car industry in China according to the PESTEL framework can show many competitive advantages for the investors to invest in the electric car industry at the right time with the right strategies. From the analysis of the environmental issue in China, there is the high level of pollution, especially in the city.
The government subsidy on the electric vehicles produced in China is one of the key factors creating the business opportunities.
Possible Strategies for Investors
E – Economically high demand from the consumer due to the lower final price and government support. S – Social Consumer preference and trend on EV T – Technological support from the government to invest in charging .. infrastructure and research and development of new technology. E - Environment To reduce the high level of pollution in China L - Legal The electric car must be produced locally to get the subsidy .. possible strategies which are: 1) proposal from the electric car manufacturers, 2) the industrial laboratory for car design and 3) the technology provider had the same concept .
All of them must have knowledge of electric vehicle design, prototyping or industrialization. Then, they have to transfer the technology to China under the condition that the cars must be made in China. The researcher cannot clearly identify which strategy is the best strategy, it depends on the investors how they would like to enter this industry or the Chinese market, how much money they have and how fast they are.
Identification of Potential Targets
- Electric Vehicle Manufacturers
- Industrial Lab for Car Design
- Technology Provider
Some companies were deleted from the lists because they did not match criteria such as the car's range, fuel type and price. Some companies were known to the CEO of Blue Galaxy Consulting Company, and he has his own preference in the process of selecting the target candidate because he knows some insight into the players in the electric car industry. OBVIO is the result of the discovery that the researcher believes is the potential target.
The following table shows the list of the findings of industrial laboratory for car design around the world, except China. The table shows the name of the company, the location, the condition and scope of service, and the size of the company from the number of employees and annual revenue (if available). The last column of the table shows the result of the analysis according to the specific criteria in this research.
The researcher has scanned many industrial laboratories for car design from all continents and contacted the potential candidate as the same process of choosing the electric vehicle manufacturer. The investor must unlock innovation and create a competitive advantage to make the electric vehicle industry profitable. EV Flash Batteries The electric vehicle will have a pack consisting of hundreds of EV FlashBattery cells that can store enough energy for a range of 300 miles (480 km) on a 5-minute charge.
From the technology provider list, the researcher would recommend Li-S batteries from OXISenergy.
CONCLUSION & LIMITATIONS
Conclusion
Limitations
The impact of government policies on China's electric vehicle industry and business strategy management: Case of FAW.
APPENDICES
Appendix A: ELECTRIC VEHICLE DEFINITIONS
The current automotive landscape consists of six powertrains – three of which have an ICE as their primary propulsion source (ICE, HEV and PHEV1) and three of which have an electric motor as their primary drive (REEV, BEV and FCEV) (Exhibit 2.1, 2.2).
