PRIVATE vs PUBLIC CHALLENGE CHINA THE ELECTRIC CAR PRIVATE vs PUBLIC CHALLENGE CURT TRUMAN B.S., M.P.A., MSUS Arizona State University
China A Comparative Analysis Private vs Public The Electric Vehicle Industry in China Private vs Public
China is 4 times the population of the U.S.A Populaiton: 1.390 Billion Population: 319 Million China is 4 times the population of the U.S.A
Urban population will reach one billion by 2030 Over 700,000,000 people live in urban areas - That's half the population Population Growth (2014 estimate): 0.44% By the year 2050 over 70% of all Chinese will live in Urban Areas.
Urbanization and Migration Over 70 percent of Chinese are expected to be living in cities by 2050, compared to less than half in 2005. advantages.
SHANGHAI, CHINA
Shanghai, China: Current population, 24,000,000 people
RESEARCH QUESTION: TIMELINE: 1. Who will win the race to implement the Electric Vehicle Infrastructure in China? Private vs Public Development? 2. Can Tesla beat the Chinese Government in building the first world class Electric Vehicle Infrastructure? 3. Are Public Incentives enough to kick-start the Electric Vehicle industry Shanghai? TIMELINE: September Review of the Literature Research local Shanghai Government Policies and Procedures Research the Tesla Company strategies to build Charging Stations Research State Grid Corporation of China strategies Research private competitors looking to enter the EV market October Review indicator research Start to analysis the data Analyze Government incentives Analyze Private Auto Maker Buyer Incentives Analyze the Charging Station Infrastructure Analyze the number of Stations and Poles in-use
October: Make second presentation of research findings Keep improving and analyzing the data collection November: Make 30 minute presentation Share new findings and developments Do an new scan of the Literature for current trends and market updates December: Submit final Deliverable by Dec 15, 2015
HOW TO MEASURE THE Electric Vehicle MARKET Indicators would include: Number of EV manufacturers currently in the market Number of sales Demographic profile of Buyers Location of sales Number of Private Companies building Charging Stations The number of Stations and charging poles Number of government incentives offered and to whom Number of licenses/registrations offered Type of incentives offered by Private Companies to attract Buyers Type of incentives offered by Government agencies to attract Inventors
RELEVANCE OF THE RESEARCH: This is new cutting edge research. The EV infrastructure is new to Shanghai and evolving everyday. The environmental impacts are huge. The social and health impacts are huge. The reduction of air pollution. Reduction on the dependency of petroleum. Move toward zero tail-pipe emissions. Set the world stage for the new and innovative EV Charging Station infrastructure. McKinsey and Company states: “at the current growth rate, over 270 million vehicles will be added to China’s roads by 2030. This would require an extra 6.2 billion barrels of oil a year – compared to current day usage of 2.7 billion barrels. “
PROBLEMS BEING ENCOUNTERED: FINDINGS TO DATE: A huge world impact if the EV market takes off. Huge profit and market shares are wide open. This is unchartered territory and the first car manufacturer who can successful build and market EV in China wins. PROBLEMS BEING ENCOUNTERED: The area is so new that there is limited data and research material available. FINAL PRODUCT: A 12 – 15 page research paper comparing the pros and cons of both Private and Public development of the new Electric Vehicle infrastructure and product development.
“The Government is face a tough challenge in attracting Private investment in the field since China only has some 100,000 Electric Vehicles on the road, including 78,000 just sold in 2014.” Source: Charging stations in China look to attract private investors|WCT www.wantchinatimes.com/news Jan 20, 2015
Government has offered incentives to companies to build Charging Stations PRIVATE: Incentives: Lower cost for acquiring the land Subsidize 30% the cost to build Charging Station Consumer-focused subsides Direct government grants towards research and development Private companies are being offered Prime Charging Station locations PUBLIC: Use of Public building Parking