Challenges In China Case Study

Electric cars over the last several years have been a controversial topic. Companies have ran into issues regarding the batteries, pricing, and clearly competition with gas fueled vehicles. I noticed Tesla Motors a few years ago and instantly fell in love with their electric vehicles. Tesla managed to keep a very clean look with a sports car feel to their vehicles, and they are currently working on their new battery which is expected to last much longer. The price of their vehicles at the moment are priced higher than most average families can afford, but Tesla announced they are releasing a more affordable vehicle in 2017. Throughout the existence of Tesla they have made it clear they will not settle with just making vehicles that are in compliance with the laws set in place, their company will strive to make the best vehicles they can.

Everyone around the country needs to work to lower emissions into the air to reduce the greenhouse gases trapping heat in the atmosphere. I am not a fan of electric vehicles but, they are better for the environment than gas or diesel vehicles. They release less gases into the air and can be recharged almost anywhere with solar panel charger adapters. Some companies like, Tesla and VIA (General Motors Company) have made a dream for a person to own and be able to afford one.

In general, companies invest in foreign markets to increase profit and sales, or they desire to protect their profit and sales from competitors. General Motors is no different, and has heavily invested in foreign markets. No manufacturer can ignore the Chinese market.

As the chief policy analyst of state XYZ, it was with great interest that I read of California's recent proposal to reduce mobile-source emissions by requiring that 10 percent of all new cars in the state be electric. Although this policy only applies to the state of California, given our location, it is inevitable that there will be some 'spill over effects' upon the local economy both in the short and the long term. Also, it has been suggested that it may be advantageous for our own state to adapt such a proposal, given the economic and political pressures that will arise thanks to California's example.

These policies include the addition of installing charging infrastructure in standardized requirements at the workplace and all public areas. Public services such as buses, garbage trucks and postal trucks should be encouraged to switch to electrical transportation. Feebates designed to encourage the use of electric vehicles offer car buyers an incentive to purchase cars based on the level of fuel efficiency (Romm et al., 1992). By implementing feebates, the number of efficient clean cars on the road will increase. As Romm and Lovins stated in 1992, “Emerging policy innovations could speed the introduction of superefficient

The growing support by governments across the globe for environmentally friendly vehicles in form of exemptions from duties & other support.

Across the world and for years governments have promoted the usage, production, and purchasing of electric vehicles. The first big push for electric vehicles was in 1998 in the state of California with the mandate that stated, “ a small percentage of vehicles sold after 2000 [ must have] zero emissions”( Baumgartner et Gross 35). This pushed many small and large vehicle companies to begin to look towards producing hybrid and electric vehicles. Another big push for electric vehicles in the United States was in 2005 when soon to be President Barack Obama advocated that” the United States [would] have one million electric vehicles on the road by 2015” (Barkenbus 56). Despite this goal never being met, without a doubt it promoted and furthered electric vehicles. Outside of North America in Europe, electric vehicle incentive is also prominent. Writing in October of 2000, Jack Barkenbus states “France is likely to be at the forefront of advocating electrical vehicle usage because of [their] nuclear power” (Baumgartner et Gross 35). This prediction was correct France now offers recharging services for electric vehicle owners. Another European country offering an incentive for purchasing electric vehicles is Switzerland. “Switzerland rewards individuals who take part in [electric vehicle promotion] by offering direct subsidies when buying a car”(Baumgartner et Gross 36). All of this incentive and promotion has been worthwhile, writing in 2017 Jack Barkenbus states that, “thirty percent of all new cars sold in the last quarter of

powered engines. It saves us from polluting our earth. China is polluting the earth by having too many factories. We can help them by using electric cars or even hybrids. Hybrids use gas and

Politically, governments are changing how Infrastructure spending is allocated. More taxpayer dollars are being spent on mass transit initiatives such as the City of Calgary’s green line project which aims to create a new train corridor with the municipal and federal governments guaranteeing a cumulative $3.08 Billion towards the project (“Green Line”, 2016). The implications for the auto industry, including fix auto is that the transit projects aim to reduce emissions by having less cars on

This can boost trucks and SUV sales and curtail non-hybrid cars with better gas mileage.

There are new technologies in automotives out there now. For example, there is the electric car. The only problem with this is that the car needs to be plugged in and can only run for four to six hours at a time, making it hard for long distance travel. Another example is a vehicle that uses a combination of a gasoline and electric engines. They call it a hybrid electric vehicle (HEV). This particular vehicle used no gas while idling and the gasoline engine turns off while the vehicle is stopped. As a result, this vehicle uses less gasoline and the tank lasts longer. The electric motor boosts acceleration so not as much gasoline is used. The HEV has a regenerative braking system that recharges the battery. This vehicle emits half of what an ultra low emission vehicle does, so is much better for the environment. It is already possible that by the year 2003 this type of vehicle will cost less because of various state and national tax incentive plans to lower the cost significantly. This has already been accepted in Maryland

In the upcoming three years, Tesla introduced their Model X, which is a SUV, and unveiled the Model 3, which started at the price of $35,000 and targeted the mass market. However, the Chinese government was strict in regulating all foreign companies entering into the Chinese economy. Many foreign companies can have a hard time making deal with local government officials. One of the biggest problems for Tesla was in 2014, which 45% of Tesla’s Model S were still unregistered with local authorities. There were also some legal issues such as, China’s laws can be ambiguous with unclear restrictions and regulations; therefore, Tesla will face strict environment laws when manufacturing their products in China. The Chinese have become more aware of the environment and the pollution arising, which is causing doubts in the car industry. Additionally, the price of gasoline is going up while the Chinese are still trying to project their status and electric cars are becoming more popular. However, despite the facts of these issues, Tesla may be a bit more expensive than predicted but families are still willing to pay the price to improve their social

Electric Cars Are Unlikely to Help Carmakers Cut CO2 Emissions Significantly by 2020, According to The Boston Consulting Group; Governments Need to

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.

The Chinese government is also aiming to put some millions of hybrid cars into use within China within the next few years. Seeing as how Honda is already