The electric vehicles in the market still holds a very small niche that does not exceed 1% of the passenger car market, but due to the progress that is made in the battery technology, these trends are beginning to change because more vehicles with an electric mode are expected to enter the market in the next few years. There is the need for companies to open up to new technologies and concept to launch electric vehicles that are suited for individual and public mobility in the urban areas, as they promise many benefits including very low to zero emissions and reduce noise. Despite the great opportunities for the electric vehicle consumption in future, the market for such vehicles is still low, because of the limitations that already crowd its production technologies as well as existing market composition. Companies such as Tesla, Chevy, and Nissan, have both invested in the production of electric vehicles, but one of the challenges that they are facing is tapping into the market, where the gas engines still dominate. Therefore, in this paper, we shall examine the individual marketing performance of major players and their future in the industry, with a special focus on Tesla, Chevy, and Nissan.
Dynamics of the Market Place and its effects on Marketing
Cost: Tesla, has dominated the electric car industry and with its all-electric luxury sedan, it has been described as one of the coolest cars on earth. It is one of the highest rated electric vehicles today, beating its competitors including Chevy and Nissan, among others. Although Tesla so far is one of the most selling cars regarding brand as reflected by over 55000 units sold up by 33% plus sell worldwide. The launch of Tesla Model 3, is known to be relatively affordable, at a price margin of $35,000, and this is a sure way that its sales will continue to grow. General Motors, through its Chevy Bolt, has made remarkable purchases not only in the United States but also in the world as a whole. Chevy Bolt, is known to be more expensive than Tesla Model 3, retailing at $37000, although the brand ranks last by popularity in the world market, with just over 16000 units sold compared to Tesla and Nissan Leaf. GM has capitalized on selling and leasing some of the units it has produced. The sales of Chevy Bolt are still relatively lower compared to Tesla. Nissan, on the other hand, has invested in producing low-cost electric cars in the market, which are seemingly affordable to most Americans among other customers from the rest of the world. The company sells the model Nissan Leaf at $30,000 which lists it as one of the cheapest among the three brands. Nissan electric vehicles popularity in the world is also remarkable, ranking third in the list with over 39000 units sales, and the Nissan Leaf is the second most popular model after Baic EC. Although its sales have dropped the company, is still investing heavily in the production of EV.
Customer preferences also affect the market of electric vehicles, with most customers preferring relatively cost-effective and efficient car. All the three brands face a common problem of customer preference, considering that every customer has certain specifications. The rich have shown a greater choice for Tesla electric vehicles, and its demands have grown in considerable numbers, causing it to invest in building luxury electric models in the process. The millennial with higher income have also shown a great promise in the market. Based on the surveys, a majority of customers would prefer to buy Chevy brand, at 53%, while 30.1% would prefer Nissan Leaf while 16.1% would go for Tesla brand. This indicates that the market dynamics about production of EV is highly dependent on the preferences of the customer.
Efficiency is also one of the many factors that customers look at when it comes to car purchase options. Tesla has capitalized on building car models such as Tesla Model S with high efficiency covering up to 220 miles without the need to recharge, and many drivers of the car have reported high raw power and performance. Chevy Vehicles, for instance, Chevy Bolt covers up to 238 miles without recharge, about 18 miles more than Tesla, but its power and speed is still lower than Tesla. Nissan, on the other hand, covers 107 miles without recharge, hence ranking it one of the lowest regarding raw power and speed. Comparing the three brands, Tesla and Chevy show higher performance and efficiency compared to Nissan, hence putting them in a better market position. Because recharge takes more time, of up to 20 minutes to recharge one battery, a majority of customers would prefer highly efficient vehicles with longer battery life. This, therefore, possess a market disadvantage for Nissan despite the fact that is cheaper than most of the other brands in the market.
One of the major downfalls of the EV industry is the battery. Companies such as Tesla, BMW, General Motors, Ford, and Nissan among others are investing huge amounts of investment on battery research technologies because the future growth of the industry is highly dependent on the availability of efficient batteries that can withstand long drives without recharge. The infrastructure for electric vehicles is still scarce in the United States, and there is the need for companies to install more battery recharge stations, to accommodate the growing demand for such vehicles. Tesla and GM motors have invested a significant amount of capital in developing efficient batteries, but Nissan still lacks behind, as it struggles to device a better technology, to ensure the survival of its brand. It is pertinent to understand that efficient battery is the ultimate bulls eye of the industry, and market of a brand will highly depend on its ability to produce durable batteries, with zero emissions.
The Long-term future of Marketing of Electric Vehicles
The long-term future of electric vehicle manufacturing the investors remain optimistic with one of the best examples being Tesla which has rapidly grown regarding market capitalization and has even passed popular brands such as BMW and General Motors. The rise in electric vehicle industry would imply the fall in diesel vehicle industry, which are still struggling to meet the regulatory targets for emissions. Countries such as China are known to be currently producing electric vehicles on a larger scale, and this implies that it would be more affordable for individuals to drive an electric vehicle in future compared to trends today. Companies such as General Motors, Volvo, and Nissan, have a vision, of all-electric implying that strategies to build a more sustainable and reliable infrastructure for electric vehicles is underway. Heavy investments have been made in the industry, for instance, Zotye, which invested $760 million for electric manufacturing in China.
The industry is still in its infancy, and it is critical to observe that issues and challenges would always be anticipated. The long-term marketing future of the electric vehicle will be highly dependent on the brand, customer preferences, battery life, efficiency as well as cost. Most importantly is the battery technology which is known to determine the cost and efficiency of the electric vehicle. Companies such as General Motors and Tesla have spent a huge sum of their investment on research to develop a durable, and lasting battery. Also, the future market of the industry is also dependent on the availability of the necessary infrastructure to provide an adequate supply of electricity for charging such vehicles. A majority of the companies such as Tesla are aiming at emerging markets such as China and India. However, studies indicate that a country such as China is highly dependent on coal for electric power generation. Considering that countries are now pushing for zero emission, the industry is still unstable. Over-reliance on coal for electricity production would still increase emissions, even though the world is advocating for minimum carbon emissions in the atmosphere to curb global warming and climate change.
As long as the world still has plenty of oil for exploration, the future growth of electric vehicle market is still uncertain. A majority of people still prefer gas driven engines, due to its efficiency and speed, and most of them are also affordable even for low-income citizens. Very few people are still willing to buy electric vehicles over gas-run vehicles due to its efficiency and cost. It is important to realize that the millage covered by electric vehicles is still very low, and this limits its competition against the other breed of vehicles. The future, however, remains bright, for the industry, and the focus on clean emission is one of its major boosts.
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