Implementing e-cars by Government
Please Read Harvard Business Case – Should Maruti Suzuki Invest in Electric Cars? available at https://hbsp.harvard.edu/import/1052280
Links to an external site. and answer the questions below in detail:
- Why does the Indian government want to phase out fossil fuel cars and replace them with e-cars? Why is Maruti reluctant to immediately forge ahead in the e-car segment?
- Conduct a SWOT analysis of Maruti in the e-car segment. Based on the SWOT analysis, should Maruti enter the e-car market or wait?
- Based on the current business and economic environment in India, should Maruti enter the e-car segment? Use game theory approach to answer this question. Identify the players, their strategies, and the appropriate game theory format to represent the conflicting situation. Provide appropriate justification and use your own payoffs for each strategy option selected by the players.
- If Maruti decides to enter the e-car market, what should be its mode of entry?
- What would be an appropriate time for Maruti to enter the e-car market?
- What should the Indian government do to promote the e-car market?
- Why are e-cars considered a disruptive technology? Should the Indian government be part of the disruptive technology, considering that the country has already invested huge amounts of money in conventional cars and oil refineries? What are the benefits of this approach and what is at stake?
All papers must be between 8 to 10 pages long with proper APA format. In addition, students must use between 5 to 8 scholarly resources to answer the questions above.
The Indian government has expressed its interest in phasing out fossil fuel cars and promoting electric cars for several reasons:
- Environmental concerns: The shift toward electric cars is driven by the need to reduce carbon emissions and combat air pollution. Electric vehicles (EVs) produce lower or zero emissions, thus helping to mitigate environmental impact.
- Energy security: India heavily relies on imported oil, and the transition to electric cars would reduce the country’s dependence on fossil fuel imports, enhancing energy security.
- Technological advancements: The government recognizes the potential of electric vehicle technology to drive innovation, create jobs, and contribute to economic growth.
Maruti Suzuki, a leading automobile manufacturer in India, may be hesitant to immediately enter the electric car segment due to various factors:
- Infrastructure challenges: The availability and accessibility of charging infrastructure is crucial for the widespread adoption of electric vehicles. Maruti Suzuki may be concerned about the limited charging infrastructure in India, which could hinder the market acceptance of electric cars.
- Cost considerations: Electric vehicles are generally more expensive than traditional internal combustion engine (ICE) vehicles, primarily due to battery costs. Maruti Suzuki may be cautious about the pricing and affordability of electric cars for the Indian market.
- Market demand and consumer preferences: Maruti Suzuki may be observing the market dynamics and consumer demand for electric cars. If there is limited consumer demand or a preference for conventional vehicles, the company may hesitate to invest heavily in the e-car segment.
