Electric vehicle investments for the Chinese market.

Abstract

Global warming from high pollution level in many cities around the world is a big problem. China ranks in number one for the highest pollution level across the world. The Chinese government focuses on the electric vehicle industry to reduce this problem. This research project started from the interest of the investors to search for Electric Vehicle Industries in order to transfer the technology from Europe to invest in the in Chinese market. The research objectives are to understand the macro environment on the electric vehicle market in China by using the PESTEL Model, to suggest the possible strategies to the investors in order to transfer technology to Chinese market and to identify the potential targets or partnership candidates to support the strategies. From the research finding, there is the business opportunity for the investor. The analysis of PESTEL in electric vehicle in Chinese market shows the government subsidy policy, the increasing demand from sale target, the consumer preference and behavior, the advancement in technology and charging infrastructure and the pollution level create the business opportunity. The researcher suggests three possible strategies to transfer the technology to China through the electric vehicle manufacturer, the industrial lab for car design and the technology providers. Moreover, the researcher identifies the potential target for each strategy to be the business partnership in the future.