This report has been produced to investigate whether a move towards electric vehicles will be good for London Taxi International limited. This report has centered on PESTEL research, Political, Environmental, Social, Technological, Economical and Legal parts using SWOT (Strengths, weaknesses, Opportunities and threats) solutions to analyse each of these regions.
The politics aspects to target upon on making a change to electric vehicles are the implantations of the regulations that advantage electric vehicles. Among the main regions these taxis operate around is London and the primary disadvantage of driving a car in London is congestion fee the government has implemented a legislation that state governments that for electric vehicles congestion charges should be scrapped. Generally per vehicle congestion charges put in place by "transport of London" is 10 for your day and from the "London Dark cabs" figures there can be an assumption of 17000 accredited cabs on the highway. Therefore in just a year this company will be saving approximately in the region of thousands of pounds and making a revenue on the electric vehicles they produce and sell as they are more attractive to purchasers. Continuing with the amount of money this change would take into account savings as a power vehicle is immune from paying street tax because its emissions are below 100g/kilometres under the new lows, this is a great way to promote electric automobiles to more people, and likewise to that the electric vehicle is immune system from the raising taxes placed on petrol.
The reason behind rising the problem of Carbon emissions is due to new regulations that are anticipated to come into effect. The car currently being produced by London Taxi International limited would become outdated as the TX4 is producing "CO2 emissions of 233g/km". Therefore even if the switch to electric is not made a fresh car strategy that produces less pollution will have to be considered.
Finally as the federal government are constantly launching new schemes to promote the electric vehicle they may have offered grants for purchasing electric cars. The latest ground breaking idea by the federal government is to provide 5000 towards the price of the electric vehicle. Therefore were producing electric vehicles individuals are more likely to buy the electric vehicle over the existing model as along with the road taxes, free parking and other schemes the government are offering will be keeping a great deal more money in both the short and permanent.
Referring back again to the SWOT method with the politics aspects however regulations in other countries consider electric vehicles as a risk because of the fact they create no manufactured sound. These countries have carried out a legislation that says all vehicles must make some noise for safety reasons. This makes cause a problem when approaching these companies with this new electric design.
Considering hazards to the political aspects of this article times are changing. Therefore at this time the federal government are pleased to promote electric vehicles in an optimistic light. However once the change over happens, the reaction to electric vehicles may change as there could be an advancement that could show them to be hazardous.
One of the largest issues in the motoring nowadays is the surroundings which is being destroyed daily. One of the main reasons for this destruction is co2 which as we realize comes mainly from the utilization of fossil petrol in automobiles. There are new legislations related to co2 emissions from vehicles and the European commission has given emission standard known as euro 1, 2, 3, 4, 5, 6, and the Mayor of London has released a taxi cab emission strategy that requires all London taxis to meet at least euro 3.
There is no debate on how electric vehicles help the overall economy and spend less; but electric autos don't just protect your pocket. In addition they stop engine oil companies from drilling offshore or in environmentally protected areas. Offshore drilling is very risks to the surroundings for example the Gulf of Mexico spill, and spills from ships such as the Exxon Valdez petrol spill in Alaska, and the Torrey Canyon in the united kingdom have illustrated the harm olive oil spills can cause to ocean-based ecosystems.
Most people may not understand exactly how these different vehicles contribute to save the planet. One of the main problems to the surroundings is produced by using vehicles that hinge mainly on fossil energy. Not only that, there are other hazards materials that could harm the surroundings, like the batteries of the vehicle which after it has been used completely it bosses a high risk to the surroundings and it should be disposed of properly. LTI has been attempting to reduce the utilization of hazardous chemicals to levels lower than those demanded by new Western Legislation and the recyclability focuses on which came into force in 2006 are pleasantly met. A number of components in LTI vehicles already are produced from recycled material and LTI's insurance plan of promoting increased use of these materials will ensure the impact of the vehicles on the surroundings will be reduced. Also LTI has been thinking of ways to dispose of the hazards materials by using modern removal facilitates that will do this within an environmentally friendly manner.
LTI Vehicles has partnered with Auto green Ltd. Automobile green, will take demand of disposing off disused LTI vehicles, and they will give a contracted network of "get back" and "Authorised Treatment Facilities" (ATFs) throughout the uk. This process ensures that re-use, restoration and recycling focuses on are fulfilled.
The economic factors include thought of economic progress for the business, interest rates impacting on cost of capital, exchange rates of exporting goods and lastly inflation rates. All these factors affect how the company will operate and what decisions it will make.
As we propose to the London Taxi Company a fresh electric engine concept for his or her taxis, we must bear in mind what effects this will have on the company economically if they decide to just do it with our idea.
The features of our idea include that there surely is a tiny but steady market for the electric engine unit notion so large sale or purchases of equipment won't cause major changes; also the product is attractive to the company as it will cut down their operating costs and hopefully increase revenue. London Taxi Company has relationships with partners across the world - international relations. This is an advantage to the taxi company as the creation rate of taxis will remain high as they provide electric taxis around the world to countries such as Egypt, Ghana, Kosovo and Lebanon. The business also has lots of European associates with programs to expose the iconic London taxi cab to Rome, Milan and Istanbul. All of these boost the company's economic growth.
As London Taxi Limited already has international relations, they might need to keep before their competition. If this is done, they would appeal more to customers because of their greener vehicles and because the electric autos costs less to perform. The taxi businesses would also want the electric cars as they cost a lower amount to run than petrol vehicles. This means London Taxi Limited would sell even more electric taxis and therefore boost their capital and profit levels.
Also when new laws and regulations on garden greenhouse gases and co2 emission are presented in different countries, (such as America, South East Asia and Australasia) London Taxi cab Limited will charm more to the taxi cab firms. This gives them a fresh business opportunity, particularly if they have electric taxis that are regarded as reliable. So London Taxi cab Limited will be the first choice for taxi cab production from taxi cab firms.
The down sides with this proposition consist of costs of research and development, money during change of petrol to electric engines and exchange rates impacting on the price of importing goods and the way to obtain exported goods to the international and European cities. As a result inflation rates would have either beneficial or damaging effects in the long term. As the market for electric cars is fairly young, research and development into new and better ideas is still being done which the London Taxi Company would be enthusiastic about doing to improve their electric motors generally. Concerning the alteration to electric for the whole production lines, complete factories would have to be adapted to suit installing electric engines into the taxi cars. This process would be quite costly and may require borrowing of money to fund it. As exchange rates are fluctuating all the time, importing and exporting costs might have an impact on the business enterprise. The inflation rates rely upon the country that is involved with business with London Taxi cab Company where, at this time, inflation rates are highest in Ghana at 15 - 25 percent25 %.
In short term, the process might be quite costly, yet if we look at the long haul, these costs will only pay back eventually anticipated to no fuel or working costs.
The communal aspect upon making this decision to change to electric is really important as the image is exactly what will encourage both community and consumers to improve to or use electric vehicles. Among the main reasons LTI should convert their cabs to energy is basically because although they do have a world renown image, that image is of a loud, expensive, intensely polluting vehicle. Converting their vehicles to energy will greatly improve this image, reduce jogging costs and make them much quieter for working in tight residential areas, making taxi cab companies much more likely to choose the taxis.
For most emerging electric cars, like the Nissan Leaf, the government provides subsidies to consumers who want to choose the electric car. If LTI are quick to go into the market, then this federal government subsidy may be offered to consumers attempting to buy the new LTI electric car. This would be hugely beneficial because taxi cab companies thinking of buying taxis would see this and maybe do something to have the reduced price while they can.
The larger the city, the more air pollution occurs due to more vehicles and establishments emitting co2. When the taxis that run in the cities were power by battery packs, then a sizable chunk of the contaminants will be reduced, as well as arranging the standard for the rest of public transfer. Other companies will be demanding LTI to provide them with the cleaner taxis if they're the first ever to enter this niche market, which gives a fantastic foothold for LTI to establish them in this growing industry. Also, if LTI have power powered cabs, then they may attract the interest of environmental fans that would usually prefer to use other methods of travel, such as bicycling or walking, thus developing a much larger customer base and therefore higher revenue.
Most people seeking a taxi in London will always choose dark-colored cabs over any other taxi model as London is largely associated with African american cabs; because dark cabs an are large brand image of London. Therefore consumers will have a bigger market of not only travelers but green people may convert to using their service and for that reason will increase LTI's production demand.
However, the number of cities the thing is that LTI's black cabs in isn't great. It will only be bigger cities which have them so only a little percentage of men and women will get to use them frequently. Smaller places and cities will miss out, until, LTI develop to more locations, which will be easily done with the reduced running costs of switching to battery power.
A problem arises also when contemplating the current express of the market. People and firms don't have enough money spare to consider huge risks. Converting from combustion to battery pack is a large risk because so little is known about the market due to it being relatively new. Dependability and range are the key concerns, but also costs of a vehicle are wearing down are unfamiliar. This uncertainty may be adequate to deter consumers and lead to a major damage to LTI.
We viewed the technology side of using London Taxi cab International Limited within the electric car market.
The first main point is that this is an innovative idea. It was not done before and for that reason will mean the business would get the top give their competition as well as a new image as being a cleaner and greener company using their customers. It is because the electric vehicles won't be producing as much of their garden greenhouse gases. Times are changing and electric vehicles are becoming better plus more useful. So it is a matter of their time before the dark-colored cabs need to change. This will get the business enterprise a head start into it and get before their competition.
If the London Taxi Company accepted our proposal, the first step would be to possibly look into borrowing some cash to start the process of shopping for new engine parts and setting up them to the taxis (having trained up manufacturing plant staff to a suitable level to transport this out) - this might then involve rates of interest which would be predetermined. Then make contact with suppliers for electric engine motor parts such as battery packs and organise charges for shipment and handling. The 3rd task would then be to improve the taxi cab car production lines and make all the brand new taxis electric with electric batteries.
The TX4 has recently proven to be a trusted vehicle that has a higher level of performance with few problems. Therefore a complete new theory design won't have to be thought to change to electric and we are able to keep the primary body of the car in support of change the drive string. The design of the TX4 has already been had by LTI and therefore there is absolutely no cost associated with keeping this design. As the TX4's form and parts it's still produced and only the engine will be altered, the equipment that has already been producing that car can still function as usual and therefore an enormous change will not be needed and money will be preserved.
It is essential for LTI to create relationships with companies that produce electric motors and are researching into the amount of the battery life. This is important as the power supply makes up a significant proportion of the price of the car and can change the retailing price where it comes at. It wouldn't be smart for LTI to develop a battery itself as they don't contain the resources and experience in this field and as a tiny company could not invest the necessary capital. Batteries are hazardous which will add new health and safety polices in the stock that may incur the costs of retraining.
The main negatives that could affect consumers wanting to acquire into electric taxis is the electric battery life. As electric vehicles are becoming more common technology is increasing to help preserve these electric vehicles battery power. London are considering introducing new underground charging stations that while parked at signals will impose the power supply to help preserve its life. As this scientific advancement has been placed around London it allows LTI to promote the electric vehicle without having to be worried about the space of the power life. Also channels where you just drive up to change the electric battery, which is robotically manned, are being utilized by America currently. In order interest rises for electric vehicles in the UK this notion will possible be created in to the UK providing more cause for electric cars.
For private use electric cars are in a disadvantage for their short range. This is why the electric car market keeps growing slowly. This isn't an issue when the automobile has been used as a taxi because taxis are hardly ever used for journeys longer than 10 miles. In the end it's the companies wish whether to adopt an order of a bigger distance or not. Which means slow affecting market for vehicles to change to electric will not have the same down sides as taxi's changing to electric.
Research shows that there won't be any technological issues when putting the new drive chain (electric engine) into the current taxi cab models. LTI has presented a fresh hydrogen and electric cross vehicle to support the 2012 Olympics. The car retains the ionic condition the London black cab but uses a "combination of a energy cell, powered by a reservoir of hydrogen, and lithium polymer batteries. " This reduces LTI's be concerned that the TX4's shell would not have the ability to support a power motor unit change.
The electric engine has less power than normal petrol/diesel motors. However this will not have an effect on sales as the automobile will be helped bring by private companies rather than those who would get worried with performance.
There are legal implications that LTI should think about when changing to electric motors. An electric car takes a special fast charging train station in order to fee it fully in a matter of hours somewhat than days and nights. These would require planning authorization to be installed on a company's property or in case a taxi company lease the house they would need authorization of the owner. There could be some safeness concerns associated with such a higher voltage supply which could provoke the federal government into bringing in new legislations regarding these charging stations
Another factor to consider when considering legal implications is undoubtedly as problems with brake equipment and lighting; one of the benefits of the electric car is the fact that it uses the automobiles momentum when free-wheeling to recharge the power supply. However a downside of this would be that the cars decelerate a lot quicker in comparison to a regular free-wheeling car. Hence there happens to be debate in regards to to if the brake signals should be on at such a time. The decisions of such regulations should not affect the possibilities to use electric vehicles for London Taxis.
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