Stakeholder Analysis Case Study

Topics: Bus, Public transport, Plug-in hybrid Pages: 5 (1410 words) Published: April 30, 2013
Stakeholder Analysis Case Study: BYDauto Enter HK’s Electric Taxi / Bus Market

Hui Qiu, EMBA 18 ESC Rennes

Case background
Hong Kong (HK) is one of the most crowded cities in the world, with almost the highest vehicle density. It has long been criticized for its bad air quality compared to its advanced economy. With the recently hazardous air pollution in China mainland, HK has been affected as well for its geographic neighborhood. The Air quality readings recently (PM2.5: 60µg/m³) have exceeded the loose local standard (50µg/m³), 3 times of WHO’s recommended standards (20µg/m³). The public appeals to the government to take actions to improve air quality.

Electric vehicle (EV) is considered the best solution for the problem. It generates nearly zero emissions of pollutants. HK lacks heavy industry, and its main source of air pollution is vehicle emission. Among all the vehicles, public transportation including buses and taxis is the best start point: * According to statistics [UN, 2011], Taxis typically drive up to ten times or more the distance per day if compared with personal cars. Therefore, taxis also have much higher fuel consumption and disproportionally contribute to total air pollution.. * Governmental intervention in public transportation sector is more effective than in private vehicle owners; * With a known number of vehicles, the investment of infrastructures like charging stations can be predictable; * The infrastructures should be able to serve for private EVs, this makes it easier for the citizens to buy and drive EVs in the city.

BYDauto is the leading EV manufactures in China. It offers both E6 for e-taxi and K9 for ebus. A fleet of 100 BYD E6 taxis and 200 e-buses now operates in Shenzhen since 2010. According to BYD’s report [BYD, 2011], the fleet testing has been extremely successful. BYD has exported its e-taxi and e-bus to Bogotá Colombian, London British, and Espoo Finland since 2012. Now BYD plans to enter its neighbor market – HK.

Identifying the Stakeholders and Their Concerns
Before initiating the project, BYD analyzed and listed the potential factors and elements that may influence the adoption of e-taxi and e-bus. BYD held multiple consultations and meetings with some key stakeholders, like the related government officials, fleet operators, taxi drivers and major environmental protection NGOs, to identify the whole set of stakeholders and their concerns and interests in the project. Meanwhile, with the help of media and labs, BYD continues to accept comments through email, online comments and written submissions, to gather input from public and societies.

The key stakeholders, potential factors and elements were pre-selected from past experience, and adjusted according to the information gathered through the consultations, meetings, questionnaires and comments. Table-1 lists the factors and elements concerned.

Table–1: Influential factors and elements on the projects
 | Influential Factors and Elements|
Investment and Planning| (1a) Infrastructure (charging stations) investment and reallocation of land;| | (1b) Additional taxi licenses and bus lines or vehicles renewal| | (1c) High vehicle purchase prices comparing to fuel cost savings;| Financial support| (2a) Government subsidies|

| (2b) Financial support and payback|
| (2c) Free or low cost charging|
Operation concerns| (3a) Driving distance on a single charge and charging duration;| | (3b) Potential high maintenance costs and inconvenience| | (3c) Operation safety|
| (3d) Ride comfort|
Incentives| (4a) Taxation incentives|
| (4b) Tolls reduction|
| (4c) Parking Incentives|
| (4d) Eco-friendly labels|
Other concerns| (5a) Effects presentation on improving the air quality| | (5b) Impacts to current petrol and LPG filling stations| | (5c) Impacts to current taxi / bus owners|
| (5d) Social influences|

Table-2 lists all the recognized...
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