Stakeholder Analysis Case Study
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
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
References: McKinsey & Company, 2012. “Recharging China’s electric vehicle aspirations: A perspective on revitalizing China’s electric vehicle industry” Available online at: http://www.mckinseychina.com/wp-content/uploads/2012/04/McKinsey-Recharging-Chinas-Electric-Vehicle-Aspirations1.pdf Presented at United Nations Expert Group Meeting on Sustainable Urban Transport: “Modernizing and Greening Taxi Fleets in Latin American Cities: International Experiences” in Rio de Janeiro, Brazil, 18-19 May 2011, pp.10 Available online at http://sustainabledevelopment.un.org/content/documents/Taxi_booklet.pdf Released by BYD. “BYD Fleet Summary”. April 28 2011 Available online at http://www.businesswire.com/news/home/20110428007512/en/BYD-Announces-EV-Fleet-Results-Anniversary-Green-Taxi Hk.taxixchange.com is the official website of HK taxi transaction http://hk.taxixchange.com/deal_record.php?action=SUCCESS&search=search&searchmonth=