Entrepreneurs are getting inclined towards adopting EVs due to the rising concerns amongst the public regarding carbon emissions and ever-increasing fuel prices. After the COVID-19 pandemic and the ongoing Ukraine-Russia War, the prices of petroleum products have peaked. It has motivated a huge number of people to switch to alternative modes of transportation, including bicycles and e-vehicles. Government support for businesses producing EVs has also increased due to this. Because of this, there is also an increased interest from huge multinationals such as Tesla to produce popular EVs in the market.
Things That Motivate Entrepreneurs to Push Electric Mobility
The following influences majorly impact the business decision making in moving towards this shift to electric mobility.
The Role of the Government
Governments across the world have considerably influenced businesses in the globalized village. There are various compliances and regulations passed by the governments that affect the shift of businesses towards a particular change. In this case, businesses have observed a significant rise in taxes and prices on fuel due to the aforementioned reasons. Moreover, the governments have also laid off taxes on EVs in some regions. This has attracted the attention of companies investing in EVs for cheaper and more efficient results.
The Role of the Potential Consumer Segments
Consumers affect business decisions significantly as the companies design and mold their services and products. The increased taxes and import prices of petrol and other petroleum products have considerably affected several customers. Hence, they have researched the clean and green sources of energy that have more mileage and lesser fuel costs.
In addition to this, the concerns of sustainability and carbon footprint have significantly impacted the public where a major target group is environmentally-concerned. They expect cleaner and more efficient vehicles foreseeing the increase in pollution and smoke. Hence, EVs are the perfect solution for this niche. This increase in demand for cleaner and more efficient vehicles with less fuel use and cost has shifted the focus of large businesses into developing electric vehicles.
The Role of Competitors
The competitors such as Tesla and others have entered the EV market with a range of electric vehicles. Considering the huge potential of EVs as observed in Norway, Iceland, the UK, as well as the US, the firms are looking forward to this development as the future of driving. Moreover, the need for R&D and technological advancements has also motivated firms into investing in this idea for change in product catalogs.