Environmentally Friendly Electric Car Project Case Study

Environmentally Friendly Electric Car Project - Case Study Example Other highly topical items driving the debate include steadily rising prices for traditional fuels used to power vehicles. As the focus of the activities of University Research Group 2, the electric car, with its inherent environmental friendliness, has distinct advantages to offer to the transport market. With the family saloon sector in mind, the electric car has a number of immediate advantages: safety and convenience coming from battery- or solar-power; efficiency from the flexible power of electric motors; economy using the duality of the electric motor and electric generator (Her Electric Vehicle, 2008). In addition, with urban traffic restrictions looming and already in place in London (Edmunds, 2007), the electric car is well placed in terms of practically zero pollution and reduced noise of operation. In a society where transport habits are still centred around the car and other means such as public transport, walking and cycling take a back seat, the electric car promises much as a solution that responds to both the consumer's needs and desires. Car manufacturers themselves seem to have some difficulty in gauging the size of the market. ... Even the major players like Toyota, a leader in hybrid electric-petrol-engine vehicles admits that "we just don't yet know the size of that market" (Calcars, 2007). The main competitor for Toyota, General Motors, recently announced plans to launch its own electric saloon car, the Volt (a PHEV - plug-in hybrid electric vehicle), with a stated 60,000 vehicles for the initial launch year (Green, 2007). Closer to home here in the UK, the specialist car company Th!nk (sic) has made public their goal to produce and sell 9,000 electric cars to sell in the UK as well as Switzerland, Norway and Denmark (Winnie, 2008). Extrapolating from these numbers suggests that the UK market for electric cars for the private consumer runs to some 48,000 units per year at the moment, of which Th!nk is aiming to capture 14%. Competition Competition in this market can be categorised in three ways. Firstly, the direct competition from other companies and organisations similar to University Research Group 2: in other words, specialists in this market, typified for example by Th!nk. Secondly, by the major car manufacturers operating on a global basis who have launched mainly hybrid models but appear to be moving towards a pure BEV (Battery Electric Vehicle) offering. General Motors is an example, as is Nissan and Toyota. Thirdly, there are the other competing elements including but not limited to petrol and diesel engine vehicles as well as low consumer awareness (ILEA, 2001). Macro environmental factors - PESTEL model overview In order to analyse and evaluate the development of the market, the potential for an electric car from University Research Group 2 and how this should be presented to the market, we use PESTEL (political, economic, socio-cultural, technological, legal and