The paper "Future Market Share for Electric Vehicles" is a great example of a marketing case study. 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 in the industry. The future of car manufacturing is going to change for the better as most of the current car producers will likely adopt the production of electric cars at affordable rates.
In 2015, the threshold of 1M cars was surpassed closing in at 1.26M. Ambitious set targets and policy support has resulted in the lowering of vehicle costs, widened vehicle ranges and, also 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 electric cars can effectively deliver the practicality, safety and affordability from them. The Future of the Electric Vehicles 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.
Consumer acceptance is deemed to be an important factor for the continual success of a sustainable transportation industry (Egbue & Long, 2012). However, it is ascertained that consumers will tend to resist new technology that is considered to be somehow unfamiliar and unproven. In this regards, the failure by EV manufacturers and policymakers to clearly ascertain and overlook consumer perceptions could result in low acceptance of EVs (Egbue & Long, 2012). In recent times, there has been an increase in the number of reasons that are focused on adopting EVs, which include; an ever-rising and volatile gasoline prices; possible greenhouse gas emissions as well as a country’ s overdependence on imported petroleum products (Egbue & Long, 2012).
Graham-Rowe et al(2012,p. 143) indicates that the present penetration of electric vehicles production has indeed widened over time as lots of car manufacturers have now made significant investments in their production plants to accommodate and embrace this new technology.
The figure below shows how the adoption of Electronic cars has been adopted over time; The rationale behind the adoption of electronic vehicles is focused on the possibility that there will be an enormous success in the future in the case where there is evidence of efforts of sustainable transport systems as well as possible optimisation of urban structures, which is needed for possible reduction of trip distances and a shift towards public transportation. 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). It is presumably clear that the future of car manufacturing and thus, car retailing will be entirely focused on electric cars.
There are a great number of reasons as to why the retailer should brace for a future characterised by higher demand for electric and hybrid vehicles as a whole. Electric vehicles are set to reduce overreliance on foreign oil importation.
As at now, there is almost more than 80% of the cost of a gallon of gas that leaves the entire US economy (EAFO (European Alternative Fuels Observatory) 2016). For the retailer, higher oil prices will likely to result in a relatively higher mark-up in a way to outdo competition hence contributing to a significant level of profitability for the firm as a whole. Savings on oil importations will help improve the overall economy of a country while also help to improve on the livelihoods of car owners.
It is also very likely that the adoption of electric cars over the gasoline-based ones will improve the overall quality of life for the EV infrastructures across the globe thereby increasing its immediate demand. In this regards, the retailer will likely benefit from the way consumers in the leafy Camberwell would engage in replacing their gasoline-cars to EVs in order to improve on their standards of living. As a car detailing company, Bayford Volkswagen Camberwell should now focus on putting proper mechanisms in place in order to ensure that they are not left behind whenever the electric car revolution amongst consumers is expected to take effect.