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Tuesday, May 17, 2011

Electric Automobile Manufacturing Industry

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Which Would You Buy?

When entering or creating a new consumer industry such as electric cars, I think the emphasis should be on initial cost. One should first focus on market saturation with it being cheaper to buy an electric car than a gas car. Then approach your customer base later with a new improved model via upgrades. A new option/add on you can purchase, only if you can afford it, greater speed, range, power, efficiency, etc.

The above business plan better meets our goal of getting more people to choose electric automobile car over a gas car sooner which I will explain. When the economy was good, people bought Hummers like crazy, even though the gas mileage was bad, because of looks and they could afford it.

In today’s economy and environment awareness, should be number one concern, after safety of course. So the winning business model and industry approach for a country will be “buy electric because you can’t afford to buy a gas car at this time”. Also utilize and grow your automobile repair industry by employing them to install future optional add-ons consumers purchase to get better speed, range, power, efficiency … as they can afford it. Utilize your existing car rental businesses for when the electric car consumer needs to take a long trip out of town, they rent a gas car.

This will result in the country/company that adopts this approach being the leader in electric car production getting more people sooner, choosing electric over gas. The current market is only the 10% high income can afford to buy electric, no matter how well the electric car scores in the other parameters. We don’t want electric car to be the Hummer of the 90s, but rather the VW Bug of the 70’s (but look cooler:>). You seen a lot more of Bugs on the road back then, than you did Hummers later, because they were cheap and good on gas, a larger market base. But you have to remember looks is second most important because consumers have a personal connection with their automobiles. From a company point of view in a new industry, focus on a niche like those who hardly leave the city, a cool go to work and back car. (Got a long trip, vacation? Rent a gas car.)

Electric Automobile Manufacturing Industry Goals ...

1) Low Initial Cost
2) Cool Looks
3) Great Efficiency
4) Longer Range
5) Acceptable Speed
6) Acceptable Power

People buy the best looking car they can afford, and only dream about the rest.
Do you want to sell cars or dreams?

Don (Follow me on Industrial Skills Training Blog and on Twitter @IndTraining .)

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