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Electric Commercial Vehicle Market Insights

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0% found this document useful (0 votes)
51 views28 pages

Electric Commercial Vehicle Market Insights

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Scientific Research

Presented to
Dr. Tarek Ali
By Team 3:
Mostafa Alaa Galal Salem
Hussein Mostafa Abdel Rahman
Mohammed Maamoon Rashad
Mona Abd-allah Hamed
Abdallah Adel Fahmy

EVs RESEARCH PROPOSAL


Title Electric Vehicles EV
Introduction
Electric vehicles (EVs) are already a reality in the international market.
Cars driven purely by battery now account for significant portions of the
vehicle fleets of developed and some of the developing countries. The
proliferation of these vehicles that are replacing engine combustion
alternatives, with either purely electric car or some hybrid form of
propulsion, has attracted the attention of researchers seeking to understand
the factors that have been most instrumental to the development of this
industry, which until only recently developed at a very slow rate without
much progress. In a review of the evolution of the industry in the last four
decades, Chan (2011) states that the successful production and marketing
of EVs depends on overcoming many challenges, including:
• Availability of products with displacement of autonomy at an
affordable cost.
• Availability of efficient and easy to use infrastructure.
• Availability of business model to leverage the cost of batteries.
Background

• What is an electric vehicle?


There are a number of different types of EVs.
• Battery EVs
Full EV powered entirely by electricity.
Battery EVs produce no tailpipe emissions.
• Hydrogen fuel cell EVs
Use a fuel cell instead of a battery and yet to achieve
market breakthrough.
• Plug-in hybrid EVs
Have both a small battery and petrol or diesel
engine and can be run both on fuel and electricity.
The Electric Vehicle Strategy mainly provides support for battery and
hydrogen fuel cell EVs which produce no tailpipe exhaust emissions
and have the capacity to be zero emissions when powered by
renewable energy.
Project
Methodology
Phenomena
EU electric vehicle sales in 2020 jumped
from 3% in 2019 to 10.5%.
The increasing sales of electric vehicles
throughout Europe have led to a sharp decline in
carbon dioxide emissions from new vehicles. This
reduction means that some carmakers have
achieved their CO2 target for 2020, while others
are close to the target. The carbon emission of
new cars in the EU decreased from 122 g/km in
2019 to 111 g/km in the first half of 2020, the
largest decline since 2008.
Phenomena
Electric car sales spiked in emerging markets in 2021
Electric cars have not met similar success in all regions in the last decade. China, Europe and the United States
account for nearly two thirds of the overall electric car market and their aggregated sales represented 95% of
total electric car sales in 2021. In large economies such as Brazil, India and Indonesia, EVs account for less than
0.5% of total sales, with some growth over the last years, albeit from low sales levels.

Notes: BEV = battery electric vehicle; PHEV = plug-in hybrid electric vehicle.
Description
Communities, businesses and governments around the world are adopting
new technologies and innovations that improve our way of life and create a
more prosperous future. This is particularly so for the transport sector, where
advances in technology are transforming the way people travel.

The same is true for technology advances in the vehicle fleet itself, with the
reduced environmental and health impacts, falling cost and high-quality
driving experience of electric vehicles (EVs) making them an increasingly
attractive option for motorists.

Global demand for EVs has increased dramatically, with total stock reaching
over 10 million in 2020 compared to less than 20,000 in 2010, with battery
electric models driving the expansion (International Energy Agency, 2020).

Ambitious government policies in some of the world’s biggest economies like


the US and UK, new companies like Tesla, as well as EV commitments from
some of the world’s biggest car makers including Volkswagen, Hyundai,
General Motors, Toyota and Ford, are also accelerating this change.
Suggested Reasons
EV Cost: The price of electric vehicles is a crucial factor affecting
consumer demand. As the cost of EVs decreases and becomes more
competitive with traditional gasoline-powered cars, more consumers
are inclined to consider purchasing an EV.
Range and Charging Infrastructure: The range of an electric vehicle
and the availability of charging infrastructure are essential
considerations for consumers. Improved battery technology and an
expanding network of charging stations alleviate range anxiety and
increase the convenience of owning an EV, making it a more attractive
option for consumers.
Performance and Technology: Advancements in electric vehicle
technology, including improved acceleration, longer ranges, and
innovative features, can attract consumers who value performance and
the latest technological advancements in their vehicles.
Research Gap
• Sales of electric cars hit 6.6 million in 2021, more than tripling their market share from
two years earlier.
• Growth has been particularly impressive over the last three years, even as the global
pandemic shrank the market for conventional cars and as manufacturers started
grappling with supply chain bottlenecks.
•In 2019, 2.2 million electric cars 1 were sold, representing just 2.5% of global car sales.
• In 2020, the overall car market contracted but electric car sales bucked the trend, rising
to 3 million and representing 4.1% of total car sales.
• In 2021, electric car sales more than doubled to 6.6 million, representing close to 9% of
the global car market and more than tripling their market share from two years earlier.
All the net growth in global car sales in 2021 came from electric cars.
Research Objectives

Opportunity for growth


Manufacturers are building EVs with low cost
to compete in this growing market which has
a big demand
Environmental impact on emission degrees.
Capturing and helping to increase awareness
for manufacturers as the main target
audience, and consumers.
Research
Questions
• How Evs breaks into the automotive Market ?
• Do the Price, the Performance and Environmental
attributes as Well as the Consumer behavior
toward Evs, Influence the Intent to Purchase One?
• How Much Savings Can Be Achieved When Using
Electricity Instead Of Gasoline?
• How Long Does An Ev Battery Last? Does the
recharging service & the growing technology
impact the EV adoption?
• How much are the maintenance and after sales
service cost for an Ev comparing to a regular car?
Literature Review
• Production Cost: affecting the consumer choice to purchase an Electric Vehicle with
an inverse & negative relationship, so when cost gets lower, the purchase gets higher.
(Master Variable)
• Supply chain: is the main affecting factor in production cost.
• Technology & Performance: have direct & positive impact on consumer preferences.
When they are improved, so consumers tend to prefer and purchase EVs. (Master
Variable)
• Range & charging: Car larger range of kilometers and availability of charging station in addition
to charging time actually is a major factor which affecting directly on Performance & Technology.
• Consumer Education level & The Environmental Awareness: Consumers having greater
environmental awareness are more conscious to buy green products by considering it’s a
responsibility of them to purchase environmentally friendly products (Mainieri,Barnett, Valdero,
Unipan, & Oskamp, 1997).
Literature Review
• Maintenance & aftersales services: EV remains roughly the same as with a
regular vehicle, and the services themselves are usually far less complex so
its more attractive to the consumers. (Master Variable)
• Gov. financial policies: have direct impact on running cost through reducing
taxes and give incentives back to manufactures. It’s negative relationship
for the incentives. However, it’s the opposite with the taxes. (Moderating
Variable)
• Consumer Age: older individuals are less likely to be adoptively innovative.
(Moderating Variable)
Theoretical Framework
Hypotheses
H1
If production cost is low, the higher then the consumer preference is high.
H2
The higher maintenance & after, the higher consumer preference.
H3
The higher technology and performance, the higher consumer preference.
H4
There is a significant negative average moderating Impact of the age of the
relationship between the consumer Preference and the Evs Increasing sales.
H5
The higher consumer preference the higher EVs increasing sales.
H6
There is the significant negative average moderating Impact of the consumer
preference of the relationship between the production cost and the Evs
Increasing sales.
H7
The lower production cost, the higher Evs increasing sales.
H8
There is the significant Positive average moderating Impact of the Gov. and
financial policies of the relationship between the production cost and the
consumer preference.
Data collection
A. Data collection source:
• Starting by using secondary method to gather all information on Evs remarkable
increase in Sales through couple of resources:
News & Researches published by official sites, specialized in automotive sector.
such as ResearchGate (free) and AutoZone (Billing).
• Then suing Primary method for Production Cost, After Sale & Maintenance and
Technology Performance.
B. Data collection approach:
- Data collecting approach is quantitative through questionnaire.
- Qualitative, through Personal interview.
Data Collection
C. Data collection methods:
• We need to conduct an structured questionnaire during an, Offline (Personal
Interview) with the focal point person inside the factory of the most selling vehicle
worldwide. As follows:
- Finance head
- Support head
- Engineer project manager
- And for the consumers preference, we need to release two online
surveys in addition to , one offline survey (Personal Interview) in malls
and car stores.
Data Collection
D. Data collection techniques:
• First: online questionnaire, through social media & automotive websites.
Addressed to everyone interested with EVs as potential customer . Using
quantitative approach in the questions order
• Second: questionnaire by email, addressed to selected category of consumers
which are the owners who have purchased the EV from individual and the owners
of organizations.
• The questionnaire sent in this email, have to contain quantitative questions to measure closely the
consumer experience as a whole, whether while taking the purchase decision, during the purchase process
& the after sales & support which is impacting his daily use.
• Third: offline questionnaire, Structured Personal Interview with consumers in malls
and car stores, addressed to catch consumer preferences, measure the desire of
purchasing EV, what consumers need to replace ICEV with EV.
Data collection
E. Data collection Tools:
• Online Tool like using internet survey
• Cost saving
• Higher response rate
• Potentially quicker response time with wider magnitude of coverage
• Offline by using personal interview in malls and cars show rooms
• Different measurement tools can be used in one survey
• Probing can be used to collect detailed information
• Respondent’s body language can be considered in helping to interpret responses/comments
F. Observation:
• Indirect: Show banners for advantages of two models of Evs and observe response for web site visit
mentioned on banner.
• Direct:
1. During the personal interview (Body Language & Voice Tone).
2. Respondent’s body language can be considered in helping to interpret responses/comments.
Data Analysis
A. Quantitative Data Analysis:
• For online questionnaires data will use quantitative analysis methods
• Descriptive analysis (online questionnaires & published market data)
• Measuring the mean to know the effect on customer preferences using standard deviation to make
the results of the research more accurate.
• Using “SPSS” program as that can analysis opinions and people behavior / attitude.
• Non descriptive analysis
• Regression will be used to test & measure hypotheses effect.
• Step-Wise Analysis will be used for testing & measure variables
B. Qualitative Data Analysis:
• For personal interviews and observation data
• Nvivo technique will be used to analyze:
1. Customers impressions and responses during interviews and banner observations.
2. Staff impressions and responses during interviews.
Research Limitation
• Inclusion:
• Industry: Electric Vehicles Automotive Industry
• 2020 was the year of the electric car in Europe. Despite the COVID-19 pandemic, electric mobility
surged across Europe, as plug-in vehicles made up 10.5% of the market, compared to only 3% in 2019.
Battery-electric vehicles (BEV) accounted for 5.4% of passenger car sales in the EU27, while plug-in
hybrids (PHEV) reached 5.1% of the market.
• Company: Tesla & Renault
• According to the 2020 electric car database in Europe,
the Tesla Model 3 leads the ranking with 15,702 sales.
Second place goes to the Renault Zoe with 11,023 sales.
• Region:
• Europe: Overall Europe’s car market contracted 22% in
2020. Yet, new electric car registrations more than
doubled to 1.4 million representing a sales share of 10%.
Population & Levels
• Companies Staff: • Consumers:
1. Production team: 1. Gender:
1.1. Assembly workers 1.1. Male
1.2. Paint workers 1.2. Female
1.3. Supervisors (Engineers) 2. Age:
2. Logistic team: 2.1. Below 30
2.1. Purchasing employees 2.2. 30 to 45
2.2. Inventory employees 2.3. Above 45
3. Quality control team: 3. Education:
3.1. Process quality control 3.1. Graduation
3.2. Final product quality control 3.2. Masters
3.3. Others
Sampling
• Companies Staff sample distribution over population:
# OF PRODUCTION TEAM # OF LOGISTIC TEAM # OF QUALITY CONTROL TOTAL # OF STAFF
LEVEL OF TEAM
ANALYSIS
POPULATION % SAMPLE POPULATION % SAMPLE POPULATION % SAMPLE POPULATION SAMPLE RESPONSE
RATE
COMPANY STAFF 200 57.1% 99 100 28.6% 49 50 14.3% 25 350 173 96.00%
TOTAL 350 173 96.00%
• Production team sample shall be selective (more than 5 years expert), other sample shall be random.
Sampling
• Consumers sample distribution over population:
# OF GENDER # OF AGE # OF EDUCTION TOTAL # OF CONSUMERS
LEVEL OF ANALYSIS
POPULATION % SAMPLE POPULATION % SAMPLE POPULATION % SAMPLE POPULATION SAMPLE RESPONSE
RATE
CONSUMERS 120 41.4% 65 100 34.5% 54 70 24.1% 38 290 157 90.00%
TOTAL 290 157 90.00%

• All sample shall be random.


Conclusion
• This research should give us a conclusion about the following:
1. The real reasons for EV market share growth during Covid19 pandemic.
2. How Tesla & Renault managed to growth there market share especially through
Covid19 pandemic.
3. Consumer preference about Evs and consumer expectation for Evs future.
4. Identify the right production process to lower production cost.
5. Identify the weak points for Evs to be managed with new technologies.
References
[Link] (2021) Market monitor: European passenger car registrations, January-December 2020. Link

[Link] & Environment (2021) Cars CO2 review: Europe’s chance to win the emobility race. Link

[Link] & Environment (2020). A new Dieselgate in the making. Link

4. EU+UK+EFTA. Source: ACEA (February 2021) Quarterly AFV registrations. The European Free Trade Association (EFTA) includes Iceland, Liechtenstein, Norway,
and Switzerland. The European Economic Area, the scope of the passenger car CO​2 standards, includes the EU, Iceland, Liechtenstein, and Norway.

[Link] Volumes (preliminary data)

[Link] selling cars (2021) Car sales statistics. Link

[Link] (2020) Record Electric Vehicle Sales in China. Link

[Link] (2020) World plug-in vehicle sales. Link

[Link], 2021. Data and Statistics. [Link]

10. Fact sheet Market monitor: European passenger car registrations, January–December 2020
[Link]
Questions & Comments
Thank you

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