ELECTRIC CARS AND THE FUTURE OF THE AUTOMOTIVE INDUSTRY

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ABSTRACT

Nations throughout the planet have set up focuses by 2050 to diminish vehicle
emissions. They have begun initiating the sale and development of EV's and
correlated charging infrastructure. Various governments are giving different sorts of
motivators, for example, low or zero enlistment charges and import charges, and
export tax exemptions. Tough CO2 discharge standards have expanded the interest
in electric vehicles. Governments are fundamentally giving impetuses and
endowments to support the sales of electric vehicles. The measures incorporate by
governments throughout the planet help in expanding the demand for electric
vehicles in the coming decade. The market of EVs is still growing, as the country
focus to achieve their milestone of emission reduction, simultaneously the
automotive market will increase. The automotive industry has encountered a
transition in the market size of electric vehicles. It is with this regard that the study
will assess electric cars and the future of the automotive industry. The main
objectives of the study incorporate how electric vehicles have been received in the
automotive market, the driving force towards the purchase of electric vehicles and
factors that influence the current market share of EVs, and benefits and
shortcomings associated with these factors. Subsequently, this study is of great
importance in providing knowledge and understanding of the automotive market,
besides providing relevant information to the government, environmental agencies,
scholars, and manufacturers of electric vehicles.
Contents
CHAPTER 1. INTRODUCTION...............................................................................4
1.1 BACKGROUND OF THE STUDY......................................................................4
1.2 STATEMENT OF THE PROBLEM.....................................................................5
1.3 OBJECTIVE OF THE STUDY............................................................................5
1.4 RESEARCH QUESTIONS.................................................................................6
1.5 SIGNIFICANCE OF THE STUDY......................................................................6
1.6 LIMITATION OF THE STUDY............................................................................7
1.7 OPERATION DEFINITION.................................................................................7
1.8 REFERENCE.....................................................................................................8
CHAPTER 1. INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The electric market has been growing for years, the EV sales have tripped for
the last three years, in 2019 the international market size of EVs was at 4,093
thousand units, however by 2030, is estimated to expand up to 34,756 thousand
units. The adoption and utilization of electric vehicles (EVs) have become an
essential aspect for the government in its efforts to curb environmental emissions
(Statharas et al., 2019). This has been influenced by the rising awareness to have
zero-emission vehicles by 2040, as well as the hiking prices of fuel internationally.
Various factors, for example, developing interest for low emanation driving and
public authority backing up long reach, zero discharge vehicles through tax rebates,
reducing battery prices and subsidies have constrained the manufactures to
establish electric vehicles in the global market. For example, in 2017, the US
invested $5 billion to support EV infrastructure like charging stations. Nations
throughout the planet have set up focuses for emission decreases as per their ability.

The expanding incorporation of electric portability in rising economies and the

increasing acceptance of autonomous driving vehicles are anticipated to offer
enormous development opportunities to merchants working in the sector. A portion
of the significant patterns that may uphold the development of this market is the
increasing numbers of charging stations by retails, expanding selection of shared
versatility, and expanding arrangement of savvy charging systems, and the
incorporation of shared mobility. Besides, nations, for example, Germany and
Norway are highly investing to initiate the sale of EVs (Lieven, et al., 2011).
Subsequently, because of the enormous impetuses and endowments in Europe, a
high development rate in the offer of electric vehicles is noticed (Gis, & Waśkiewicz,
2014). This has prompted the development in the demand for segments and
hardware related to EV charging activities like adaptors, portable chargers, and
connectors. Additionally, as a feature of an association between the US divisions of
transportation and energy, a 2025 vision for a public quick-charging network is relied
upon to be created, with potential longer-term advancements.

The Asia Pacific market is estimated to encounter unswerving growth

attributable to the appeal for cost-friendly cars with fewer emissions, while the
European elite Passenger vehicles fragment. Their public authority has upheld the
EV request development by introducing EV charging stations, making discharge
standards, setting up cutoff times for moving to half-breed electric vehicles. India is
likewise chipping away at expanding its EV interest on the lookout. It has adopted a
new vehicle scrappage strategy to initiate low emission vehicles and other
forthcoming arrangements will help the nation become the region's quickest
developing market sector for EV's in the future. Nonetheless, greater expenses
associated with introductory speculations, execution requirements, and few filling
stations, could hamper the development of the worldwide electric vehicle market
(Zhgulev et al., 2018).

1.2 STATEMENT OF THE PROBLEM

There is insufficient charging in stations electric in numerous nations
worldwide, which reduces the public electric vehicles charging thus decreasing the
interest for EV. Most nations are yet to grow such charging networks across their
locale. Road transportation is a critical supporter of the versatility of our worldwide
society. Against the foundation of environmental change, the shortage of assets, and
the increasing populace, manufacturers, and government need to search for
answers to decrease the ecological effect of private and public vehicles. Road
transport plays a significant part in environmental pollution through emissions of
CO2. Albeit the quick advancement of the worldwide economy and innovation has
progressed human civilization, it has additionally made gigantic harm to the
worldwide natural climate (Tu, 2002). Notwithstanding, nuclear energy, hydrogen
fuel, and sun-oriented energy, are innovatively unpredictable and can't accomplish
large-scale manufacturing in a brief time frame. Electric energy, as a possible energy
arrangement as of now, can address the country's reliance on oil assets somewhat
(Sun et al., 2020). One of the significant explanations behind ecological
contamination is the huge expansion in vehicle possession and use (Hao, et al.,
2016).

Private vehicles are liable for almost 12%, where the discharges are
expanding every year (European Commission, 2010). Moreover, manufacturers are
compelled to accomplish required discharge focuses for new vehicles (European
Commission, 2010). An emanation decrease of 60% in the transportation area is
designated to be achieved by various nations by 2040. EVs assume a significant part
to diminish ozone-depleting substances since they are a potential option in contrast
to ICEV (internal combustion engine vehicles). This advancement can be seen in the
overall growing demand for electric vehicles (Devineni, 2011). Hence, one of the
answers for ecological issues is to supplant customary vehicles with electric
vehicles.

1.3 OBJECTIVE OF THE STUDY

The study aims to access how electric vehicles have been received in the
automotive market. Its focus to comprehend why buyers in developed nations such
as China, UK. The USA favors EVs over fossil fuel vehicles. With current
manufacturers opting to develop emission-free EVs there is a need to examine how
these vehicles are doing in the transport sectors and whether their market size is still
growing (Svenningsson, 2010). Likewise, the study aims to invest the driving force
towards toward purchase of electric vehicles. In addition, it centered to gather data
on factors that influence the current market share of EVs, and benefits and
shortcomings associated with these factors. Meanwhile, the study focused to
analyse the future trend of electric vehicles in the automotive market.

1.4 RESEARCH QUESTIONS

The study explicates on market size of electric vehicles in the transport sector
and expected trend of the automobile market and various factors influencing the
current market share of EVs. Therefore, to achieve the research objective, the study
utilized a semi-structured questionnaires system and interviews to collect
quantitative data. The research questions were directed at various managers of
automobile manufacturers. Each manager from different levels was handed over a
questionnaire to fill the queries with utmost faith to replicate a true picture of the
automobile market. The questions asked included: will electric vehicles be the future
of the automotive industry? How do government subsidies and export/import tax
holidays impact the automotive industry? How many electric cars do you
manufacture semi-annually? How many EVs have you sold for the last year? How
long have you been using electric vehicles? What benefits are associated with EVs?
How long will continue utilizing electric cars?
1.5 SIGNIFICANCE OF THE STUDY
The objective of the findings is to acquaint more understanding and
knowledge concerning the market size and nature of the automotive market in the
transport sector. First of all, consumers have different consumer habits that pertain
to preferences and needs. This study is critical in helping electric vehicle
manufacturers to identify and gauge exception consumer needs and preferences as
well as promoting the basic needs of consumers. Environmental pollution through
the emission of sulfur and carbon gases that are realized as a result of using fuel.
However through continuous growth in the market for electric vehicles, this study
ought to establish the importance of electric vehicles in curbing environmental
pollution, thus the study is of great help to environmental agencies and the
government as well as I seek to exploit alternative ways of using electricity rather
than relying on the fuels all the time. Subsequently, the study will also be
phenomenal in addressing the power of innovation as well as enriching the existing
body of literature and innovative students, besides creating employment
opportunities and demonstrating how innovation offers a decorative answer to
unemployment as well as environmental protection from pollution.

Subsequently, the study is phenomenal to students in equipping them with

knowledge and innovative skills essential in the field of the automobile market. The
findings of this research would help supervisors in dynamic toward the foundation of
automobile infrastructure and relevant knowledge on charging stations. Supervisors
could likewise utilize the bits of knowledge from this investigation to get steady
proposals for further developing the general EV framework. The consequences of
this examination would profit policymakers to set key bearings through a coordinated
perspective on the whole EVs environment including the board of transport and taxi
armadas, bikes.

1.6 LIMITATION OF THE STUDY

During the research, I experienced hardship during the structured interviews
where it was difficult to get clear and real views of the automotive market. The study
focused on detail on the environmental pollution aspect of electric vehicles. Vehicles
that don't depend on diesel and gas sources can be alluded to as new energy
vehicles, including electric vehicles, hybrid electric vehicles, and fuel cell vehicles. .
Nevertheless, this examination just spotlights electric vehicles to investigate the key
components influencing their market size and future trends.

1.7 OPERATION DEFINITION

Electric vehicles are vehicles that are fully or partially power-driven on
electricity to reduce costs and protect the environment from pollution.

Innovation pertains to new processes, new techniques, and the

establishment of new ideas on a product to create a new value. For instance, it
involves the application of new techniques that oversee the manufacture of an
electric vehicle to replace existing fuel vehicles.

Charging stations, Relates to equipment that essential in charging electric

vehicles by connecting electric vehicles to the source of electricity. They are usually
provided by electricity utility companies or by private companies.

The automobile market attributes to a special market that incorporates

buying and selling electric vehicles as well as electric vehicle components including;
engines electric vehicle bodies.
1.8 REFERENCE
Devineni, M., Dinger, A., Gerrits, M., Mezger, T., Mosquet, X., Russo, M., Sticher, G.
and Zablit, H., 2011. Powering autos to 2020: the era of the electric car. Boston
Consulting Group.

European Commission, 2010. Climate Action - Reducing CO2 emissions from

passenger cars. Available online at
http://ec.europa.eu/clima/policies/transport/vehicles/cars/index_en.htm, visited on
12th /07/2021.

European Commission, 2010. Climate Action - Road transport: Reducing CO2

emissions from vehicles. Available online at
http://ec.europa.eu/clima/policies/transport/vehicles/index_en.htm, visited on 12 th
/07/2021.

Gis, W. and Waśkiewicz, J., 2014. Future of electric cars in the EU. Journal of
KONES, 21.

Hao, Y., Dong, X.Y., Deng, Y.X., Li, L.X. and Ma, Y., 2016. What influences personal
purchases of new energy vehicles in China? An empirical study based on a survey of
Chinese citizens. Journal of Renewable and Sustainable Energy, 8(6), p.065904.

Lieven, T., Mühlmeier, S., Henkel, S. and Waller, J.F., 2011. Who will buy electric
cars? An empirical study in Germany. Transportation Research Part D: Transport
and Environment, 16(3), pp.236-243.

Statharas, S., Moysoglou, Y., Siskos, P., Zazias, G. and Capros, P., 2019. Factors
influencing electric vehicle penetration in the EU by 2030: A model-based policy
assessment. Energies, 12(14), p.2739.

Sun, L., Zhang, T., Liu, S., Wang, K., Rogers, T., Yao, L., and Zhao, P., 2020.
Reducing energy consumption and pollution in the urban transportation sector: A
review of policies and regulations in Beijing. Journal of Cleaner Production,
p.125339.

Svenningsson, C., 2010. Automatic Charging of Electric Vehicles: Infrastructure

Aspects. Electrical Engineering, Royal Institute of Technology.
Tu, J.C., 2002. Product Sustainable Design—Green Design in Theory and
Practice. Taipei: Asiapac Books Pte Ltd.

Zhgulev, E., Bozhuk, S., Evdokimov, K. and Pletneva, N., 2018. Analysis of barriers
to the promotion of electric cars on the Russian market. Engineering for rural
development, 17, pp.2110-2117.