Question

ABC motors is presently manufacturing passenge cars and wanted to shift to electric cars. What factors should the company consider to determine the demand of electric vehicles in India and also determine the capacity of plant?

Answer 1

When shifting to electric cars, ABC Motors should consider factors such as growth potential, charging infrastructure, competitor analysis, consumer awareness, and plant capacity.

Step-by-step explanation:

When shifting to electric cars, ABC Motors should consider several factors to determine the demand for electric vehicles in India and the capacity of their plant:

1. Growth potential: Evaluate the market potential for electric vehicles in India by analyzing consumer preferences, government policies, and financial incentives.
2. Charging infrastructure: Assess the availability and accessibility of charging stations to ensure customers can conveniently charge their electric vehicles.
3. Competitor analysis: Study the strategies and market share of existing electric vehicle manufacturers in India to understand the level of competition.
4. Consumer awareness: Determine the level of awareness and perception of electric vehicles among the Indian population through surveys and data analysis.
5. Plant capacity: Conduct a feasibility study to determine the optimal capacity of the plant based on projected demand, production capabilities, and future growth plans.