Consultant Report For London Taxis International Limited

This study is being produced to look into whether a move towards electric vehicles will be good to London Taxi International limited. This study has focused on PESTEL analysis, Political, Environmental, Social, Technological, Economical and Legal parts utilizing SWOT ( Strengths, weaknesses, Opportunities and menaces ) methods to analyze each of these parts.The political facets to concentrate upon on doing a alteration to electric vehicles are the nidations of the Torahs that benefit electric vehicles. One of the chief parts these taxis operate around is London and the chief disadvantage of driving in London is congestion charge the authorities has implemented a jurisprudence that states that for electric vehicles congestion charges are to be scrapped.

Generally per vehicle congestion charges implemented by `` conveyance of London '' is ?10 for the twenty-four hours and from the `` London Black cabs '' figures there is an premise of 17000 accredited cabs on the route. Therefore within a twelvemonth this company will be salvaging about in the part of 1000s of lbs and doing a net income on the electric vehicles they produce and sell as they are more attractive to buyers. Continuing with the money this alteration would account for nest eggs as an electric vehicle is immune from paying route revenue enhancement because its emanations are below 100g/km under the new depressions, this is one of the ways to advance electric autos to more people, and in add-on to that the electric vehicle is immune from the raising revenue enhancements put on gasoline.The ground for lifting the issue of Carbon emanations is due to new Torahs that are due to come into consequence. The auto presently being produced by London Taxi International limited would go disused as the TX4 is bring forthing `` CO2 emanations of 233g/km '' . Therefore even if the switch to electric is non made a new auto construct that produces less pollution will hold to be considered.

Finally as the authorities are invariably presenting new strategies to advance the electric vehicle they have offered grants for buying electric autos. The latest advanced thought by the authorities is to offer ?5000 towards the monetary value of the electric vehicle. Therefore if we are bring forthing electric vehicles consumers are more likely to buy the electric vehicle over the bing theoretical account as along with the route revenue enhancement, free parking and other strategies the authorities are offering will be salvaging a great trade more money in both the short and long term.Mentioning back to the SWOT method with the political facets nevertheless Torahs in other states consider electric vehicles as a jeopardy due to the fact they create no unreal noise. These states have implemented a jurisprudence that says all vehicles must do some noise for safety grounds. This makes cause a job when nearing these companies with our new electric design.

Sing menaces to the political facets of this study times are altering. Therefore at the minute the authorities are happy to advance electric vehicles in a positive visible radiation. However one time the switch over happens, the reaction to electric vehicles may alter as there may be an promotion that could demo them to be risky.One of the biggest issues in the driving these yearss is the environment which is being destroyed twenty-four hours by twenty-four hours. One of the chief grounds for this devastation is co2 which as we know comes chiefly from the usage of fossil fuel in motor vehicles.

There are new statute laws refering co2 emanations from vehicles and the European committee has issued emission standard known as euro 1, 2, 3, 4, 5, 6, and the Mayor of London has introduced a cab emanation scheme that requires all London taxis to run into at least euro 3.There is no argument on how electric vehicles help the economic system and salvage money ; but electric autos do n't merely protect your billfold. They besides stop oil companies from boring offshore or in environmentally protected countries. Offshore boring is really jeopardies to the environment for illustration the Gulf of Mexico spill, and spills from ships such as the Exxon Valdez oil spill in Alaska, and the Torrey Canyon in the UK have illustrated the harm oil spills can do to ocean-based ecosystems.Most people may non understand precisely how these alternate vehicles contribute to salvage the planet. One of the chief jobs to the environment is produced by utilizing vehicles that depend chiefly on fossil fuel.

Not merely that, there are other jeopardies stuffs that can harm the environment, like the batteries of the vehicle which after it 's been used to the full it bosses a high hazard to the environment and it has to be disposed of decently. LTI has been seeking to cut down the usage of risky substances to degrees lower than those demanded by new European Legislation and the recyclability marks which came into force in 2006 are comfortably met. A figure of constituents in LTI vehicles are already produced from recycled stuff and LTI 's policy of advancing increased usage of these stuffs will guarantee the impact of their vehicles on the environment will be reduced. Besides LTI has been believing of a manner to dispose of the jeopardies stuffs by utilizing modern disposal facilitates that will make this in an environmentally friendly mode.LTI Vehicles has partnered with Auto green Ltd. Auto green, will take charge of disposing off obsolete LTI vehicles, and they will supply a contracted web of `` take back '' and `` Authorized Treatment Facilities '' ( ATFs ) throughout the United Kingdom.

This procedure ensures that re-use, recovery and recycling marks are met.The economic factors include consideration of economic growing for the company, involvement rates impacting cost of capital, exchange rates of exporting goods and eventually rising prices rates. All these factors affect how the company will run and what determinations it will do.As we propose to the London Taxi Company a new electric engine construct for their taxis, we have to bear in head what effects this will hold on the company economically if they decide to travel in front with our thought.

The advantages of our thought include that there is a little but stable market for the electric engine construct so big sale or purchases of supplies wo n't do major alterations ; besides the merchandise is attractive to the company as it will cut down their running costs and hopefully increase net incomes. London Taxi Company has relationships with spouses all over the universe - international dealingss. This is an advantage to the cab company as the production rate of taxis will stay high as they supply electric taxis across the universe to states such as Egypt, Ghana, Kosovo and Lebanon. The company besides has a figure of European spouses with programs to present the iconic London cab to Rome, Milan and Istanbul. These all increase the company 's economic growing.

As London Taxi Limited already has international dealingss, they would necessitate to maintain in front of their competition. If this is done, they would appeal more to clients for their greener vehicles and because the electric autos costs less to run. The cab houses would besides desire the electric autos as they cost less to run than gasoline vehicles. This means London Taxi Limited would sell even more electric taxis and hence hike their capital and net income degrees.

Besides when new Torahs on green house gases and co2 emanation are introduced in the different states, ( such as America, South East Asia and Australasia ) London Taxi Limited will appeal more to the cab houses. This will give them a new concern chance, particularly if they have electric taxis that are known to be dependable. So London Taxi Limited would be the first pick for cab production from taxi houses.The disadvantages with this proposition consist of costs of research and development, funding during transition of gasoline to electric engines and exchange rates impacting the cost of importing goods and the supply of exported goods to the international and European metropoliss.

As a consequence rising prices rates could hold either good or damaging effects in the long term. As the market for electric autos is reasonably immature, research and development into new and more efficient thoughts is still being done which the London Taxi Company would be interested in making to better their electric engines by and large. Refering the transition to electric for the whole production line, complete mills would necessitate to be adapted to accommodate the installing of electric engines into the cab autos. This procedure would be rather dearly-won and might necessitate adoption of money to fund it. As exchange rates are fluctuating all the clip, importing and exporting costs might hold an consequence on the concern.

The rising prices rates depend on the state that is involved in concern with London Taxi Company where, at the minute, rising prices rates are highest in Ghana at 15 - 25 % .In short term, the procedure might be rather dearly-won, yet if we look at the long tally, these costs will merely pay off finally due to no fuel or running costs.The societal facet upon doing this determination to alter to electric is highly of import as the image is what will promote both the populace and consumers to alter to or utilize electric vehicles. One of the chief grounds LTI should change over their cabs to electric power is because although they do hold a universe fame image, that image is of a loud, expensive, to a great extent fouling vehicle. Converting their vehicles to electric power will enormously better this image, cut down running costs and do them much quieter for running in tight residential countries, doing taxi companies more likely to purchase the taxis.

For most emerging electric autos, such as the Nissan Leaf, the authorities provides subsidies to consumers who want to purchase the electric auto. If LTI are speedy to come in the market, so this authorities subsidy may be offered to consumers desiring to purchase the new LTI electric auto. This would be enormously good because cab companies looking to purchase taxis would see this and hopefully take action to acquire the decreased monetary value while they can.The larger the metropolis, the more pollution occurs due to more vehicles and industries breathing carbon dioxide. If the taxis that run in the metropoliss were powered by batteries, so a big ball of these pollutants will be diminished, every bit good as puting the criterion for the remainder of public conveyance. Other companies will be demanding LTI to supply them with the cleaner taxis if they are the first to come in this niche market, which gives an first-class bridgehead for LTI to set up them in this turning industry.

Besides, if LTI have battery powered cabs, so they may pull the attending of environmental partisans that would otherwise prefer to utilize other manners of conveyance, such as cycling or walking, therefore making a much larger client base and hence higher gross.Most people desiring a cab in London will ever take black cabs over any other cab theoretical account as London is mostly associated with Black cabs ; because black cabs an are big trade name image of London. Therefore consumers will hold a bigger market of non lone tourers but environmentally friendly people may change over to utilizing their service and hence will increase LTI 's production demand.However, the figure of metropoliss you see LTI 's black cabs in is n't great. It tends to merely be larger metropoliss that have them so merely a little per centum of people will acquire to utilize them on a regular footing. Smaller metropoliss and towns will lose out, unless of class, LTI expand to more metropoliss, which will be easy done with the decreased running costs of change overing to battery power.

A job arises besides when sing the current province of the economic system. Peoples and houses do n't hold adequate money spare to take immense hazards. Converting from burning to battery is a big hazard because so small is known about the market due to it being comparatively new. Dependability and scope are the chief concerns, but besides costs of a vehicle are interrupting down are unknown.

This uncertainness may be adequate to discourage consumers and consequence in a major loss to LTI.We looked at the engineering side of utilizing London Taxi International Limited within the electric auto market.The first chief point is that this is an advanced thought. It has n't been done before and hence will intend the company would acquire the upper manus over their competition every bit good as a new image as being a cleansing agent and greener company from their clients.

This is because the electric autos wo n't be bring forthing as much of their green house gases. Timess are altering and electric autos are going better and more utile. So it 's a affair of clip before the black cabs demand to alter. This will acquire the concern a head start into it and acquire in front of their competition.

If the London Taxi Company accepted our proposal, the first measure would be to perchance look into borrowing some money to kick off the procedure of purchasing new engine parts and put ining them to the taxis ( holding trained up factory staff to a suited degree to transport this out ) - this would so affect involvement rates which would be predetermined. Then do contact with providers for electric engine parts such as batteries and organise monetary values for transporting and managing. The 3rd undertaking would so be to alter the cab auto production line and do all the trade name new taxis electric with batteries.The TX4 has already proven to be a dependable vehicle that has a high degree of public presentation with few jobs.

Therefore a whole new construct design will non necessitate to be considered to alter to electric and we are able to maintain the chief organic structure of the auto and merely alter the thrust concatenation. The design of the TX4 is already owned by LTI and hence there is no cost associated with maintaining this design. As the TX4 's form and parts will still be produced and merely the engine will be changed, the machinery that is already bring forthing that auto can still work as usual and hence a monolithic alteration will non be needed and money will be saved.It is indispensable for LTI to make dealingss with companies that produce electric motors and are researching into the length of the battery life.

This is of import as the battery makes up a important proportion of the cost of the auto and will alter the retailing monetary value in which it is sold at. It would n't be reasonable for LTI to develop a battery itself as they do n't hold the resources and experience in this field and as a little company could non put the necessary capital. Batteries are risky and this will present new wellness and safety ordinances in the mill which will incur the costs of retraining.The chief disadvantages that could impact consumers desiring to buy into electric taxis is the battery life. As electric vehicles are going more common engineering is increasing to assist prolong these electric vehicles batteries. London are sing presenting new belowground charging Stationss that while parked at visible radiations will bear down the battery to assist prolong its life.

As this technological promotion is being placed around London it enables LTI to advance the electric vehicle without being worried about the length of the battery life. Besides stations where you merely drive up to alter the electric battery, which is robotically manned, are being used by America presently. So as involvement additions for electric vehicles in the UK this thought will possible be introduced into the UK giving more cause for electric autos.For private usage electric autos are at a disadvantage because of their short scope.

This is why the electric auto market is turning easy. This is non an issue when the vehicle is being used as a cab because taxis are about ne'er used for journeys longer than 10 stat mis. In the terminal it 's the companies wish whether to take an order of a bigger distance or non. Therefore the slow affecting market for autos to alter to electric will non hold the same disadvantages as cab 's altering to electric.Research has shown that there wo n't be any technological issues when seting the new thrust concatenation ( electric motor ) into the current cab theoretical accounts. LTI has introduced a new H and electric intercrossed vehicle to back up the 2012 Olympics.

The auto keeps the ionic form the London black cab but uses a `` combination of a fuel cell, powered by a armored combat vehicle of H, and Li polymer batteries. '' This reduces LTI 's concern that the TX4 's shell would non be able to back up an electric motor alteration.The electric motor has less power than normal petrol/diesel motors. However this should non impact gross revenues as the auto will be brought by private companies instead than persons who would be concerned with public presentation.There are legal deductions that LTI should see when altering to electric motors.

An electric auto requires a particular fast bear downing station in order to bear down it to the full in a affair of hours instead than yearss. These would necessitate be aftering permission to be installed on a company 's belongings or if a cab company lease the belongings they would necessitate permission of the proprietor. There could be some safety concerns associated with such a high electromotive force supply which could arouse the authorities into conveying in new statute laws sing these bear downing StationssAnother factor to see when believing about legal deductions is such as jobs with brake visible radiations ; one of the benefits of the electric auto is that it uses the autos momentum when free-wheeling to reload the battery. However a drawback of this is that the autos slow down a batch quicker in comparing to a regular free-wheeling auto. Hence there is presently debate with respect to whether the brake visible radiations should be on at such a clip.

The determinations of such Torahs should non impact the possibilities to utilize electric autos for London Taxis.