Marketing Automotive

Many car brands are betting on the electrical vehicles.Why do they enter this race ? We can, sum up the rising prices of oil prices,the public awareness on climate change, air pollution problems, cars cost of use, technological advances, new emission régulations,…

First estimation by industry experts, shows that pure battery electric vehicles could account for 12 per cent in 2020 and 32 % in 2030. Over 30 % pénétration would mean substantial changes in the world’s largest automotive markets – 30 %in the U.S.A – over 50 % in Japan and China.

How to get there ? Advances in batteries will be critical. Lithium-Ion batteries (the kind used in mobile phones,or laptop computers – have improved the economics, safety, reliability and range. Everything is not yet settled. Indeed electrical vehicles have still disadvantages in termes of cosqt, range and performances. Improving batteries in terms of energy density, charging time and lifetime will be key. But,optimizing all these different pièces will take money, brains and a bit of luck. Governments will also play a driving role in the process by pushing there lo,ngterm objectives. Research funds are already présent en tax crédits will promote the use of electrical vehicles by car owners.

Almost all major car companies have announced plans to sell electrical vehicles between 2012 and 2014.

Nissa-Renault CEO, Carlos Ghosn, has predicted that one in 10 cars globally will run on battery power alone by 2020. Additionally a recent report from Deloitte’s global manufacturing industry group, claims that by 2020 electric cars and other « clean cars » will take a third of the total of global car sales (read more).

Electrical vehicles : nothing really new !

At the early days of the automobile industry, electric cars enjoyed High popularity. Between the mid 19th century and the early days of the 20th century electricty was considered as providing better comfort and ease of use than the gasoline cars. Later advances in internal combustion technology offered interesting advantages (quicker refueling time, good gasoline infrastructure, mass production factories, reduced prices,…) and pushed the development of gasoline vehicles.

At the end of the 19th century, electric automobiles held many speed and distance records of which the breaking of the 100 km/h speed barrier, by Camille Jenatzi on April 29, 1899 in his ‘rocket-shaped’ vehicle « La jamais Contente ».

Already at that time, the main handicap of electrical vehicles was the lack of recharging infrastructure.

Among the advantages, the electrical vehicles could bring forward that they did not have the vibration, smell, and noise associated with gasoline cars. They did not require gear changes, which for gasoline cars was the most difficult part of driving.

The Indian automaker, is seeking to boost sales of its Nano “minicar” by selling it through the stores of discount retail chain Big Bazaar.

The company started the case as a pilot project to see whether a car can actually be sold through a hypermarket. A company spokeperson told : “So far, it has lived up to the expectations.” More specifically, Big Bazaar has sold 450 units to date, or 5% of the total 8,262 Nano purchases made by Indian consumers across February 2011.

Big Bazaar discount stores is a concept appealing to the masses and there is a lot of commonality between Big Bazaar consumers and prospective Nano buyers. Big Bazaar’s customers, mostly value conscious people, fit in the profile of Nano buyers.

This new approach marks the latest evolution of Tata’s efforts to stimulate demand for the Nano after sales hit just 509 vehicles in November 2010. It has begun using an increasingly diverse range of alternative vendors, as well as kiosks, to engage potential customers in different settings than car forecourts, and also offers several financial plans.

Indian automotive experts think that Tata Motors may have realised that for a product like Nano, conventional distribution systems such as car showrooms can only help to an extent.

Automakers are saying they will likely be back online by later this week. Toyota is the only automaker in Japan with major manufacturing operations in the northern region of Japan, which is closest to the offshore epicenter of the quake.

For the time being Toyota closed three factories, and Honda Motor Co. has also suspended production, which could affect exports.

The biggest earthquake-related production losses are likely to be at Toyota’s plants near the epicenter: the brand-new plant in Miyagi Prefecture, which makes the Yaris and has a 120,000 unit-per-year capacity. There are also Toyota-owned parts makers there.

Toyota says it has already restarted its plants in Hokkaido, Tohoku, the Miyagi Plant, and its Kanto Auto Works Iwate Plant.

Honda reportedly lost two employees at its Tochigi factory, Kanto region, near Utsunomiya. The company’s 48-year-old Sayama plant, closer to the epicenter, has reportedly remained shut down, and Honda headquarters had trouble contacting its plants. Reportedly, 30 people were hurt and one killed when the facility’s cafeteria wall collapsed.

Nissan says its global headquarters building in Yokohama was not significantly affected. The automaker says small fires broke out at the Tochigi Plant and the Iwaki Plant casting facilities but have been extinguished, and two employees at Tochigi Plant suffered minor injuries. However, the Nissan Oppama plant was reportedly affected, and that factory is where Nissan makes its new electric car, the Leaf.

Suzuki Motor Corporation reported it has suffered no damage to headquarters or manufacturing plants located in the Shizuoka Prefecture region; the earthquake’s epicenter was 240 miles north of Tokyo and Suzuki’s headquarters are in Hamamatsu City, which is 158 miles south of the city.