Tesla Case Study
1. Introduction
In light of the constant rises in petroleum prices, climate changes and an economy recovering from the effects of the recent economic downturn, consumers have started to reconsider the usage of electric cars (Global EV Outlook, 2013). Electric Vehicles [EV] have been around since the 1830s, yet it is only recently that countries have experienced an increase in their production thus redefining tomorrow’s automobile and transportation industry. This year, the global production of EV is predicted to rise by 67% (IHS, 2014).
1.1 Market Trends
According to the Green Car Guide (2014), top Battery Electric Vehicles (BEVs) models include the BMW I3, Renault Zoe, Nissan Leaf and the Tesla Model S. In 2012, 90% of the EVs were present in the US (38%), Asia (31%) and Europe (21%) (IEA, 2013; see figure 1 in appendix). Sales of BEVs are predicted to grow over the next decade, reaching a number of 3.8 million vehicles by 2020. This means that the EV market segment will experience a 40% compound annual growth rate in comparison to the 2% forecasted in the general automobile industry.
For the time being, the US will remain the largest market for electric-powered cars. However Europe is in the midst of transformation; it is the second largest market for electric vehicles behind the United States. France, Germany and the UK are predicted to remain the market leaders of BEVs in Europe due to the increase in the number of charging docks from 7,250 to over 3.1 million stations over the period of 2012-2019 (Frost & Sullivan, 2013). Despite the advances made and positive trend forecasts, the BEV market is experiencing numerous barriers which have caused a slower adaptation rate from consumers. Although France has consolidated its leading position in Europe, others like Germany and Norway have failed to reach similar success in terms of sales (despite owning developed EV industries). The industry’s most pressing
In light of the constant rises in petroleum prices, climate changes and an economy recovering from the effects of the recent economic downturn, consumers have started to reconsider the usage of electric cars (Global EV Outlook, 2013). Electric Vehicles [EV] have been around since the 1830s, yet it is only recently that countries have experienced an increase in their production thus redefining tomorrow’s automobile and transportation industry. This year, the global production of EV is predicted to rise by 67% (IHS, 2014).
1.1 Market Trends
According to the Green Car Guide (2014), top Battery Electric Vehicles (BEVs) models include the BMW I3, Renault Zoe, Nissan Leaf and the Tesla Model S. In 2012, 90% of the EVs were present in the US (38%), Asia (31%) and Europe (21%) (IEA, 2013; see figure 1 in appendix). Sales of BEVs are predicted to grow over the next decade, reaching a number of 3.8 million vehicles by 2020. This means that the EV market segment will experience a 40% compound annual growth rate in comparison to the 2% forecasted in the general automobile industry.
For the time being, the US will remain the largest market for electric-powered cars. However Europe is in the midst of transformation; it is the second largest market for electric vehicles behind the United States. France, Germany and the UK are predicted to remain the market leaders of BEVs in Europe due to the increase in the number of charging docks from 7,250 to over 3.1 million stations over the period of 2012-2019 (Frost & Sullivan, 2013). Despite the advances made and positive trend forecasts, the BEV market is experiencing numerous barriers which have caused a slower adaptation rate from consumers. Although France has consolidated its leading position in Europe, others like Germany and Norway have failed to reach similar success in terms of sales (despite owning developed EV industries). The industry’s most pressing
Bibliography: Austin, M. (2013), Consumer Perception Inhibits Electric Vehicle Adoption, http://electronicdesign.com/power/consumer-perception-inhibits-electric-vehicle-adoption, Accessed 7th May 2014 Blanco, S. (2014), Tesla drops model S prices in Europe due to strengthening euro, http://green.autoblog.com/2014/03/21/tesla-drops-model-s-prices-in-europe/, Accessed 7th May 2014 Crawford, J. (2014). How challenger brand Tesla is Disrupting the Market - State of Digital. [online] State of Digital. Available at: http://www.stateofdigital.com/challenger-brand-tesla-disrupting-market/[Accessed 16 Apr. 2014].Top of Form Bottom of Form IHS (2014), Global Production of Electric Vehicles to Surge by 67 Percent this year, Available URL: http://press.ihs.com/press-release/automotive/global-production-electric-vehicles-surge-67-percent-year Accessed on 14/04/2014 Johnson, D. (2014). Tesla planning affordable Bluestar family car, among others. [online] Leftlanenews.com. Available at: http://www.leftlanenews.com/tesla-planning-affordable-bluestar-family-car-among-others.html[Accessed 30 Apr. 2014]. Mangram, M.E., (2011), The globalization of Tesla Motors: a strategic marketing plan analysis, Journal of Strategic Marketing, Vol. 20, No. 4, July 2012, 289-312, Accessed on 13/04/2014 Reynolds, S