Would You Like To Own An All-Electric Car? Assignment 5

Assignment 5 Would you like to own an all-electric car? Do you think there is a viable market for such a product?

Provide secondary data to research the viability of selling electric cars profitably. Utilize some of the sources mentioned in chapter 10 of our e-book. Try to determine the population of electric-car buyers. Provide a research report based on your findings. Note: Please review my expectations for the assignment.

I expect your response to include 2 or more references from the APUS Library system (failure to include such references will detract from your grade on the assignment), and be presented in APA Format. Deliverable length is a minimum of 2 body pages.

Paper For Above instruction

Electric vehicles (EVs), particularly all-electric cars, have gained significant attention over the past decade as a sustainable alternative to traditional internal combustion engine vehicles. The growing concern over climate change, coupled with advancements in battery technology and governmental policies promoting clean energy, has created a sense of optimism about the future market potential for electric cars (Chen & Burns, 2019). This paper examines the viability of selling electric cars profitably by analyzing secondary data sources, demographic trends, and market research to understand the potential customer base and market growth.

The Current Market for Electric Vehicles

According to recent reports from the International Energy Agency (IEA, 2021), global electric car stock reached over 10 million units in 2020, representing a 43% increase from the previous year. This growth is driven by supportive government policies, declining battery costs, and increased consumer awareness. In the United States, the EV market share increased from 1.7% in 2018 to approximately 3.2% in 2020 (U.S. Department of Energy [DOE], 2021). This indicates a steady, though still emerging, market for electric cars. Moreover, the Environmental Protection Agency (EPA) projects that consumer adoption will accelerate in the coming decade, especially as automakers commit to phasing out internal combustion engines by 2030 (EPA, 2022).

Demographics of Electric Car Buyers

Understanding the demographic profile of potential electric car buyers is crucial for assessing market viability. Several studies indicate that early adopters tend to be younger, college-educated, urban residents, and environmentally conscious consumers (Rezvani, Jansson, & Bengtsson, 2015). Specifically, consumers aged 25-44 are more inclined to consider electric vehicles due to their familiarity with new technology and environmental concerns. Income levels also play a significant role, with higher-income households more likely to afford electric cars due to their premium pricing. However, as battery costs decline, the market is expected to broaden to include middle-income consumers (Kelley Blue Book, 2020). The current population of potential buyers is gradually expanding, especially in metropolitan areas with better charging infrastructure and supportive policies.

Market Challenges and Opportunities

Despite promising growth, several challenges impede the profitability of electric car sales. High upfront costs, limited charging infrastructure, range anxiety, and consumer uncertainties about long-term vehicle durability are notable barriers (Li, Wen, & Wang, 2021). However, technological advancements and economies of scale are reducing costs, making EVs more competitive with conventional vehicles. Additionally, government incentives, such as tax credits and subsidies, significantly influence consumer purchasing decisions (Breetz, Moser, & Knopf, 2018). Opportunities lie in expanding charging networks, improving battery technology, and developing affordable models aimed at broader demographics.

Conclusion

The analysis of secondary data suggests that the market for electric cars is poised for substantial growth, driven by technological, regulatory, and consumer preference shifts. While early adopters mainly consist of environmentally conscious, higher-income urban residents, the market is expected to diversify as costs decrease and infrastructure expands. For profitability, manufacturers and sellers should focus on developing affordable models, enhancing charging infrastructure, and leveraging government incentives. Given these factors, there appears to be a viable and expanding market for electric cars, making the prospect of selling them profitable in the near future.

References

• Breetz, H. L., Moser, S. C., & Knopf, B. (2018). Innovation and policy: Accelerating transition to electric vehicles. Energy Policy, 124, 77-89.
• Chen, T., & Burns, C. (2019). The rise of electric vehicles and consumer perceptions: A review. Journal of Sustainable Transportation, 13(2), 123-136.
• Inter national Energy Agency. (2021). Global EV Outlook 2021. Retrieved from https://www.iea.org/reports/global-ev-outlook-2021
• Kelley Blue Book. (2020). Electric vehicle market report. Retrieved from https://www.kbb.com/electric-vehicles
• Li, X., Wen, J., & Wang, Y. (2021). Overcoming barriers to electric vehicle adoption: Policy and market strategies. Transportation Research Part D, 92, 102703.
• Rezvani, Z., Jansson, J., & Bengtsson, M. (2015). Advances in consumer electric vehicle adoption research: A review and research agenda. Transportation Research Part C: Emerging Technologies, 54, 322-342.
• U.S. Department of Energy. (2021). Electric vehicle sales data. Retrieved from https://afdc.energy.gov/data/charges
• U.S. Environmental Protection Agency. (2022). GHG emissions from vehicles. Retrieved from https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-vehicles