Literature Review: Rise Of Electric Cars And Its Impact On Traditional Car Industry

Electric Cars and Traditional Car Industry

Objectives of the Literature Review

Question:

Discuss about the Electric Cars and Traditional Car Industry.

One of the most important parts of carrying out research activities is literature review. This part takes into consideration the researches that have been carried out by previous researchers.  The literature review is carried out for providing discussion and evidence of background of traditional car industry and electrical car industry. Review takes into consideration the advantage and disadvantage of electric cars and its development.

Determining the scope of literature review is an important part of conducting research that depicts what researcher exactly wants to cover in review. This particular study deals with the rise of electric cars and its impact on traditional car industry

Some of the literature review objectives concerning the given topic are as follows:

• What are the attitude and emotional response of customers towards electric cars?
• What factors facilitate driving electric cars?
• To provide overview of the factors that led to adoption of electric vehicles.

Background between electric cars and traditional car industry:

Electric vehicles were first introduced before the intervention of internal combustion internal vehicles way back in year 1838. Since the innovation of automobiles, electric vehicles have been around. A renewed interest was generated in electric vehicles in year 1990. Until, today, market for electric vehicles has remained relatively small. However, it is expected that global share of electric vehicles would be considerably driven by substantial improvement of battery technology. Electric vehicles have different versions and there are different types of electric vehicles (Aggelakakis et al. 2015). This involves plug in hybrid electric vehicles, battery electric vehicles, range extended electric vehicles.

United States, Europe and China are the market that witnessed early development of electric vehicles where technology is promoted by policies supporting electric vehicles. Compared with conventional vehicles, costs are relatively high for electric vehicles in these countries. There has been increasing importance of sustainability motorism with growing mobility of cars. Regarding the advantage of electric cars, there have been conflicting opinions. The background of electric car has been studied through literature review by making comparative analysis of electric vehicles with traditional ones (Calabrese 2015).

Electric vehicles have lower environmental impact as compared to conventional vehicles, there has been apparent unstoppable rise of electric vehicles, and it is predicted that powertrain market would be dominated by the next decade. As early as 2027, sales of traditional fossil fuels vehicles wold be less than sales of electric vehicles. Internal combustion engines performance characteristics will be exceeded by electric vehicles. However, technological outcome is prone to error and in this area, it would specialize (Dharmakeerthi et al. 2015). Therefore, the purchase of traditional internal combustion vehicles would match the new electric vehicle purchase price.

Background of Electric Vehicles

Number of existing electric cars

(Source: Esnaola et al, 2016)

Sales of model of electric cars worldwide are shown in graph. Sales of electric cars are increasing particularly in US as witnessed by above graph. Market leader in electric car sales is Nissan Leaf. Mitsubishi Outlander was the popular model in year 2015 followed by Nissan leaf.

Common electric cars in world:

(Source: Ziefle et al. 2014)

A journal on that contributed to discussion of success of electric vehicles depicts that there has been increasing focus on battery technology and electric vehicles. There is a link between incentive for designing electric cars and volume of sales generated. Choice is faced by Automakers between competing design strategies and technology until there is a significant increase in sales of electric cars. Another article suggested that electric cars would take the majority of new car market in the 2030. However, it has been argued by many oil companies that it would not be possible and they expect a slow increase for electric cars.

Auto industry cranked up for more electric cars as discussed in the article and it provides for more reliance of auto industry to produce electric vehicles. The highest target for electric vehicles was Volkswagen by 2025 and the more popular is expecting plug in hybrids

Electric cars advantage and disadvantage:

A variety of potent electronic opportunities is created by development of electronic vehicles. However, the market of electric vehicle is in its early stage of development, it seeks to reshape the industries and communities all over the world. A host of industries would be driven by job creation due to electrification of personal transportation cars. Compared to conventional vehicles, the operation of electric vehicles are much cheaper. Economy will have more disposable income arising from electric vehicles drivers. Infrastructure of electric vehicles helps in improving life quality (Burgess et al. 2013).

As presented by author in an article depicts that manufacturers of electric vehicles face a huge potential investment problems. The reason is attributable to the fact that countries have some harsh rules concerning carbon dioxide for 2021 that needs to be met. Compared to conventional counterparts, sales of electric vehicles in Europe has been slow. It is expected that with generous government subsidies sales would collapse. It is also with the erratic range, high price of electric vehicles, sales would rise significantly, and this would be upon force by government (Othmer 2014).

Electric Vehicle Market Trends

Organization switching to electronic transportation will have the advantage of retaining and attracting workers by offering communities of adequate charging locations. Electric vehicles will also help in reducing dependency on foreign oil and decreasing utility prices. Some of the tentative blocks of electric vehicles are it costs, range anxiety of consumers and charging infrastructure. The cost is considered to be relatively higher after performing cost benefit analysis. For instance, the price of Tesla model 3 is quite high at $ 35000 (Li et al. 2016). Price of electric cars would increase when car makers would intend to solve the problems of range anxiety. Since the electrical charge would not be strong, drivers would be left stranded. When coming to charging infrastructure, it has been said that there is no universality in charging stations with the improvement in electric cars. Electric vehicle value proposition has not been increasing at higher rate (Nieuwenhuis and Wells 2015). However, compared to gas powered cars, the advancement in efficiency is more for electric vehicles.

Electric vehicles are regarded as one of the vital component of growing green economy as they reduce dependants on fossils fuels and reduce pollutants. There is a great potential of creating employment opportunities with the creation of jobs in electric vehicle industry. All the major sectors of economy would experience increased employment, as the infrastructure would be supporting electric vehicles (Smitka and Warrian 2016).

Reason behind success of electric cars

A journal discussing about will the electric cars would go mainstream, it is said that battery technology is slower to evolve and meaningful progress has been made in recent years. As discussed in the article concerning adoption of electric vehicles and its influence resulting from socio economic factors and financial incentives. The adoption rates of electric vehicles is dependent upon country specific factors for explaining diversity in adoption rate (Tovey 2016).

Factors that are not incorporated in the price of electric vehicles is pollution abatement results in socio economic benefits and knowledge appropriability concerning externalities. For determining the success of electric cars, it is required to ascertain relationship between vehicle adoption rate and instruments policies. The market share of electric vehicle in different countries is strongly related with charging infrastructure (Poullikkas 2015). Nonetheless, some of the descriptive analysis illustrated in the article suggest that the high electric vehicle adaption rates is not influenced by charging infrastructure and financial incentives.

Advantage and Disadvantages of Electric Cars

Some of the drivers of usage of electric cars are emotions followed by their attitude towards electric cars. Another considerable driver of usage intentions are reflective emotions. The promotion of electric vehicles is able to fine-tune their persuasive efforts by way of designers, public authorities and electric carmakers. It should be emphasized by electric carmakers electric cars are compatible to use and it should be taken into account that there is no basic difference between driving an electric car with those of traditional ones. When consumers by an electric model, they do not change their buying habits. The adoption process can be started by persuading individuals to by the electric vehicle who are environmentally concerned (Othmer 2014). Customers who are sticking to vales such as hedonism, adventure and benevolence are more intended to purchase electric vehicle.  The landscape for the development of electric cars by major manufacturers such as Chevy Volt and Nissan Leaf.

Another article deals with the electric vehicles market penetration analysis in the German passenger market. The objective of this particular paper is to identify the possible market share of electric vehicles. It has been depicted by analysis that external conditions forms the basis of market success of powertrain of electric vehicles. There is certain possibility that powertrain would not enter the market despite low energy cost, price incentives and rising oil prices. Current technology for electric vehicles, which the consumers are not willing to take the advantage. Therefore, it is expected that researcher is required to identify the potential in integrating electric vehicles with use of technology and renewable energy that would excite researchers, environmental practitioners and policy makers. A further research is required to be conducted that should enquire into benefits, costs, potential barriers and response of public behaviour relating to transformation plan (Ziefle et al. 2014).

Electric cars company development:

Sales of electric vehicles in Europe is significantly higher than US resulting from higher gas prices and number of available models. Some of the European companies such as Volkswagen, BMW and Mercedes are setting the tone for new wave of plug in electric vehicles. Other organizations are redesigning their models such as Toyota, general motors and Nissan.

Volkswagen is gearing up and planning to roll out electric vehicles that are affordable to consumers. A huge progress is made by German company is reducing production costs. One of the corner stone of efforts of Volkswagen to emerge from emission scandal is electric models. In terms of sales of electric cars, BMW stands in eighth place. Organization is making increasingly more investment in infrastructure charging and they would be pumping out electric vehicles in coming years. Increase in usable range of vehicles has attributed to adoption of electric vehicles (Serra 2013).

Environmental Impact of Electric Cars

Tesla has managed to upgrade and constantly refine its model of electric vehicles that would help in boosting their sales.  Toyota has made difference to the electric model outside the compliance RAVA E4. Instead of battery models, there is a big plan for fuel plan electric cars (Lu et al. 2016).

Journal article	Quality of the paper	Currency	Validity and relevance
Sierzchula, W., Bakker, S., Maat, K. and van Wee, B., 2014. The influence of financial incentives and other socio-economic factors on electric vehicle adoption. Energy Policy, 68, pp.183-194.	The article discusses about the advantages of electric vehicles relating to emission of greenhouse gas and climatic change mitigation. It also mentions about the factors inflecting the adoption rate of electric vehicles in different countries. Furthermore, it has also addressed the market failures in context of government policies. It made use of some statistical tool such as multiple linear regression analysis.	The article is published in year 2014.	Article is reviewed by 197 people and is considered relevant.
Moons, I. and De Pelsmacker, P., 2015. An extended decomposed theory of planned behaviour to predict the usage intention of the electric car: A multi-group comparison. Sustainability, 7(5), pp.6212-6245.	This article discus about the factors that affect buying behaviour of customers towards electric cars. Several research questions are poised in this study such as determining electric cars usage intention. It takes into account car driving habits, emotion role and their importance toward electric cars. Article also takes into account environmental concern of customers along with different value orientation and degree of innovativeness.	The article was published in year 2014.
Propfe, B., Kreyenberg, D., Wind, J. and Schmid, S., 2013. Market penetration analysis of electric vehicles in the German passenger car market towards 2030. International Journal of Hydrogen Energy, 38(13), pp.5201-5208.	This article analysis the market penetration of electric vehicles in German market and discusses about the factors driving the passenger car market. It deals with the critical success factors determining the market success factors.	The article was published in year 2013.
Wesseling, J.H., Niesten, E.M.M.I., Faber, J. and Hekkert, M.P., 2015. Business strategies of incumbents in the market for electric vehicles: Opportunities and incentives for sustainable innovation. Business Strategy and the Environment, 24(6), pp.518-531.	This particular article focuses on innovating the strategies concerning electric vehicles and incentive of large car manufacturers and how such factors affect sales of electric vehicles. As per the analysis, it was found that more electric vehicles was sold by large manufacturers having strong innovative opportunity and having strong incentive. A typology of business strategies, recommendation and managerial implications are offered for stimulating sustainable development. It deals with sustainable innovation of electric vehicles by large manufacturers.
Poullikkas, A., 2015. Sustainable options for electric vehicle technologies. Renewable and Sustainable Energy Reviews, 41, pp.1277-1287.	This article discusses about different types of electric vehicles along with existing differences.  It depicts that compared to conventional vehicles, electric vehicles have higher fuel economies and it was found that conventional gasoline vehicles would produce more greenhouse gas emission compared to electric vehicles when they are recharged from electricity produced from power plants of conventional technology.	The article was published in year 2014.

After performing the detailed analysis of literature review, it is found that with the passage of time, the market share of electric vehicles would significantly increase globally. While purchasing electric vehicles, there are some barriers along with some facilitators.  The identified research Gap while addressing the literature review is that learning have not been able to engage in training and learning sessions. There are number of major barriers to market expansion of electric vehicles and barriers include technological, perceptual and institutional barriers. In addition to this, there are any gaps in understanding the interactions that requires to be resolved before electric fuel successfully moves forward (Xiao et al. 2015). 

Conclusion drawn:

From the above analysis of literature review, it has been found that that market of electric vehicles is significantly growing. Many barriers have been identified in encouraging customers to take up with electric vehicles. For encouraging customers to take up with electrical vehicles, it is considered equally important to overcome perceptual barriers. The perception of electric vehicle as being cheap and low would be reverted by luxury car markets. Factors have been identified that would facilitate electric vehicle transition to mass market despite considerable number of barriers. 

References:

Aggelakakis, A., Bernardino, J., Boile, M., Christidis, P., Condeco, A., Krail, M., Papanikolaou, A., Reichenbach, M. and Schippl, J., 2015. The future of the transport industry (No. JRC93544). Joint Research Centre (Seville site).

Burgess, M., King, N., Harris, M. and Lewis, E., 2013. Electric vehicle drivers’ reported interactions with the public: Driving stereotype change?. Transportation research part F: traffic psychology and behaviour, 17, pp.33-44.

Calabrese, G., 2015. Outlining policy responses to stimulate automotive car demand by environmental impact reduction. Journal of Environmental Planning and Management, 58(1), pp.55-68.

Chanaron, J.J., 2013. The evolution of relationships between car manufacturers and France-based component suppliers in the context of deep crisis and accelerating technical change. International Journal of Automotive Technology and Management, 13(4), pp.320-337.

Dharmakeerthi, C.H., Mithulananthan, N. and Saha, T.K., 2014. Impact of electric vehicle fast charging on power system voltage stability. International Journal of Electrical Power & Energy Systems, 57, pp.241-249.

Esnaola, A., Ulacia, I., Elguezabal, B., De Dios, E.D.P., Alba, J.J. and Gallego, I., 2016. Design, manufacturing and evaluation of glass/polyester composite crash structures for lightweight vehicles. International Journal of Automotive Technology, 17(6), pp.1013-1022.

Impact of Electric Cars on Traditional Car Industry

Li, C., Cao, Y., Kuang, Y. and Zhou, B., 2016. Influences of electric vehicles on power system and key technologies of vehicle-to-grid. Springer.

Liu, Q., Fang, H., Wang, J. and Yan, S., 2015. The Impact of Electric Vehicle Charging Station on the Grid.

Lu, L., Han, X., Li, J., Hua, J. and Ouyang, M., 2013. A review on the key issues for lithium-ion battery management in electric vehicles. Journal of power sources, 226, pp.272-288.

Markusik, S., Krawiec, S., ?azarz, B., Karo?, G., Janecki, R., Sierpi?ski, G. and Krawiec, K., 2015. The technical and operational aspects of the introduction of electric–powered buses to the public transportation system. Logistics and Transport, 27(3), pp.41-50.

Moons, I. and De Pelsmacker, P., 2015. An extended decomposed theory of planned behaviour to predict the usage intention of the electric car: A multi-group comparison. Sustainability, 7(5), pp.6212-6245.

Nieuwenhuis, P. and Wells, P. eds., 2015. The global automotive industry. John Wiley & Sons.

Othmer, C., 2014. Adjoint methods for car aerodynamics. Journal of Mathematics in Industry, 4(1), p.6.

Paterson, S., Vijayaratnam, P., Perera, C. and Doig, G., 2016. Design and development of the Sunswift eVe solar vehicle: a record-breaking electric car. Proceedings of the Institution of Mechanical Engineers, Part D: Journal of Automobile Engineering, 230(14), pp.1972-1986.

Poullikkas, A., 2015. Sustainable options for electric vehicle technologies. Renewable and Sustainable Energy Reviews, 41, pp.1277-1287.

Propfe, B., Kreyenberg, D., Wind, J. and Schmid, S., 2013. Market penetration analysis of electric vehicles in the German passenger car market towards 2030. International Journal of Hydrogen Energy, 38(13), pp.5201-5208.

Serra, J.V.F., 2013. Electric vehicles: Technology, policy and commercial development. Routledge.

Sierzchula, W., Bakker, S., Maat, K. and van Wee, B., 2014. The influence of financial incentives and other socio-economic factors on electric vehicle adoption. Energy Policy, 68, pp.183-194.

Smitka, M. and Warrian, P., 2016. A Profile of the Global Auto Industry: Innovation and Dynamics. Business Expert Press.

Tovey, M. ed., 2016. Design for Transport: A User-centred Approach to Vehicle Design and Travel. Routledge.

Wesseling, J.H., Niesten, E.M.M.I., Faber, J. and Hekkert, M.P., 2015. Business strategies of incumbents in the market for electric vehicles: Opportunities and incentives for sustainable innovation. Business Strategy and the Environment, 24(6), pp.518-531.

Xiao, H., Huimei, Y., Chen, W. and Hongjun, L., 2014, June. A survey of influence of electrics vehicle charging on power grid. In Industrial Electronics and Applications (ICIEA), 2014 IEEE 9th Conference on (pp. 121-126). IEEE.

Xiao, Q., Li, B., Dai, F., Yang, L. and Cai, M., 2015. Application of Lithium Ion Battery for Vehicle Electrification. Electrochemical Energy: Advanced Materials and Technologies.

Ziefle, M., Beul-Leusmann, S., Kasugai, K. and Schwalm, M., 2014, June. Public perception and acceptance of electric vehicles: exploring users’ perceived benefits and drawbacks. In International Conference of Design, User Experience, and Usability (pp. 628-639). Springer, Cham.