Internationalization of Arrival electric car company into Australian and New Zealand market Analysis.
Introduction
Mobility is very vital to everybody around the world.Being able to move around efficiently is highly valuable as they are able to move around their goods either for trade or maybe goods needed move for their sustenance. Arrival electric car company,an oxford-based company laid out plans to launch its first electric vans and buses on the road alongside expanding facilities that aid in production.They rose on trading after completion of its US$13BN public offer.After their merger with CIIG Merger Corp,they announced their first n public roads with customers in the Final quarter of 2021 with First Bus Division.The electric car is expected to be of quality yet maintaining the same price to fuel fossil.This is done through a unique method of production that will enable expansion of the electric cars into the global market through “micro factories”.With three “micro factory” in North and South Carolina and Bicester near Oxford Arrival has enabled its market to expand into local communities enabling decentralized production.
Denis Sverdlov,who is the Founder and the CEO of Arrival quoted that”Going public is an opportunity that will allow us to continue to scale globally bringing these products to more and more cities and people.” Expansion for Arrival has shown to be an important task for its company.The electric is specialized to reduce the total cost of ownership,upgrading the hardware and software so that it can be up to date with the latest technology and a modular battery ranging from 44Wh to 133Wh to allow operators to choose the range requirements.Electric vehicles creates an excitement since they offer impressive acceleration,the cost of fuel is low,low maintenance cost,they can be fuel at home,they have less vibration and noise as compared to internal combustion.They are also desirable since they have less gas emissions and fuel efficiency, and they offer ways of proper mobility that the masses find great value as they can respond to adverse effects of transport.(Joshua Miller 2014).This discussion focuses on the internalization of Arrival into New Zealand and Australia and the policies including aspects put in place to encourage the introduction of Electric cars into the market.The discussion therefore provides an overview of research on Australia and New Zealand political and economic factors that affect Arrival companies in both countries.
Political analysis of Australia as Compared to New Zealand
New Zealand and Australia are attracted to electric vehicles as any country worldwide.
Australia
Australia’s fastest-growing market has been light vehicle GHG emissions, but the adaption of electric vehicles has been slow(climate works 2016).The state and the locals have provided support on infrastructure since there is no official policy framework on electric vehicles.Measures have been proposed by Climate works to ensure that the advantages of Electric vehicles are given recognition(.Air pollution rules have been put in place since the 1970s before.(Climate Change Authority 2014).The absence of vehicle fuel efficiency is an important part of the vital.Australia and New Zealand however developed do not have such standards in place.They are vital in states where electricity is generated from brown coal and where electric cars have worse overall emissions for some time.(Climate works 19).In 2014 the government decided against compulsory light-vehicle standards.(Climate Change Authority 2014).
However, fuel consumption was economical that led to the reduction of emission in the economy. Car owners were able to save and minimize additional costs incurred in fuel consumption..(Matthew L James 2013) The government came up with a Ministerial forum on vehicle emission to reconsider emission standards and find other ways.Thereafter, the climate change authority advised that the carbon dioxide emission standards be introduced for both light and heavy vehicles.(Climate change authority 2016).For these vehicles, the authority recommended certain figures to prove that they have an advantage over light vehicles.It has been noted that electric vehicles with direct financial incentives have a relatively higher prices of emissions reductions and advised research into better responsibilities by both private and public providers in infrastructure.
New Zealand
The growth of New Zealand road transport emissions has grown thrice as fast as overall national emissions.(ME 1195,2015)The overall percentage of people using public transport is low as per the international standards. Various sources of renewable energy such as hydro are the major supply of New Zealand’s electricity.The renewal percentage comes to nearly 80 per cent.In another case, wind energy and geothermal energy have been used recently and are being relied on to supply electricity.Electric vehicles would not pressurize the system however. It doesn’t matter whether they will be at a larger percentage of vehicles to be manufactured in the near future.(Technical Report 2010)The nearness of electric supply at homes at anytime even during parking hours, mostly at night would enable charging of these electric cars.(Ibid,21)Most companies dealing with provision of electricity are interested with the production of the electric cars as this provides a ready market for their product.As the market gap and sales widen on a daily basis, the sales of these vehicles are growing at a greater speed.(Simon Bridges 2016).
Infrastructure in new Zealand can face growth through policy measures that have proven to succeed globally;Improving public awareness through creating knowledge on the importance of Electric cars and changing their perception can aid growth.Aside from this, the legislation should provide clear information on the intention of the government is investing in climate,eradicating barriers and avoiding any uncertainty through clear communication.Price pressures on the use of hydrocarbon fuels that are high enough to bring changes in-vehicle use.A greater advantage of the electric vehicles is that it reduces a lot of emissions. This has helped to minimize air pollution.A research done in 2012 shows that air pollution from on road vehicles results in restricted activity, premature mortality rate and even extra hospital admissions.It has been proven that a greater source of carbon monoxides and nitrogen oxides are road vehicles.The response provided by the regulatory of New Zealand to id in reduction of air pollution is the Land Transport Rule under Act 1988.
A general taxonomy of electric vehicle measures is comprised of three types; unregulated market forces, conventional regulation and market mechanisms.For unregulated market force, it involves improving electric vehicle technology with cheaper vehicles and no longer range.Lower and steadier electricity prices than petrol prices.Its characteristics indicate that market pressure may have a positive influence or bring about positive change fast enough.For conventional regulation, it has the following examples; Vehicle fuel efficiency standards affecting the whole fleet, aimed at fuel efficiency and GHC emissions.Zero-emission testing exemption.Building code for chargers.Electric utility regulation to facilitate charging band removal of barriers in existing law.Its characteristics are as follows ;The strongest action the state can take. Little dependent on market and consumer behaviour. More general law reform.For market mechanism,it is comprised of tradable certificates for energy savings that affect the price of fossil fuels.Its characteristics are the market mechanism depend on the consumer behaviour for uptake and it has a risk of complexity.
Economic Analysis of Australia as compared to New Zealand
Electric cars is beneficial for the social and economic stability of a country.Some of factors that affect internalization of arrival is:
Electricity as a fuel:The importance of electrical vehicles is that it is dependent on electricity as Fuel in comparison to oil.The prices of fuel from a private owner in new Zealand view is important.(IEA 2014).The public benefits is dependent on generation of electricity.New Zealand’s electricity supply has been dominated with areas of renewable energy sources, mostly hydro and this is expanding as compared to coal and natural gas.Despite changes in rainfall,the proportion of renewable in generation mix is almost 80 percent.(New Zealand Energy 2015).Other additions to the generation of electricity has become a necessity therefore wind energy and geothermal has been in demand.(River Power Ltd 2014).The demand changes the interest of transport fuel to petroleum to electricity to New Zealand compared to Australia which attracts the demand of electric cars at 14.9 percent.The internalization of Arrival to both countries is anticipated as it is concerned with their change in economic development.New Zealand and Australian companies are interested in Arrival expanding to the countries since the demand for electricity is not as high as that of fuel.The electricity supply will not be stressed .Changes in the peak of demand for electricity will be unavoidable due to the distribution of systems hence will require investments.Despite of all the advantages of the electrical vehicles,they still remain as motor vehicles that is they still need to use infrastructure and still cause traffic congestion.
Air pollution and noise:Pollution on road for New Zealand and Australia according to a study in 2012 causes increased number of hospital admissions,early mortality and restricted mortality.Evidence shows that the negative effect has increased by 12 per cent.(Aoteroa 2015).Response of air pollution in New Zealand is by rules that regulate emissions of substances to the human health that is it does not regulate any other harmful substances such as carbon monoxide,nitrogen oxides and hydrocarbons.The most recent policy follows Australian Design Rules that allows diverse standards but mainly the European Union Regulation.As from 1970s Australia had their regulations that govern on air pollution in place.(Australian Design Rule 2014).Australia and New Zealand regulations on vehicle exhaust are similar to that of other OECD countries.(Miller and Facanha).In general New Zealand should introduce policies that make electric vehicles attractive.The new petrol engines with an electronic engine causes little air pollution because mostly ozone formation is uncommon in New Zealand.Electrical Vehicle will definitely reduce pollution for Australia and New Zealand and is therefore both countries become very adaptive to the internalization of Arrival.The enforcement of electric cars becomes an important niche for the two countries as it calls for attention as it is positive in the betterment of the economy.
Climate Change and energy efficiency:The major source of Greenhouse gases(GHGs) is transport emissions.(JD Miller 2014).In New Zealand and Australia GHGs is mainly contributed by the transport sector;mostly the road transport as it produces 90.1percent of all transport emissions.44 per cent of emissions from the energy sector is accounted to the transport sector.This more than use of electricity,fugitive emissions and manufacturing combined.(GHGs Emissions 2013).Greenhouse gas emissions is associated to efficiency of energy that shows a lot of advantages in curbing the increase in effects of energy supply activities and infrastructure.(Annual Fleet Statistics 2014).Since electric vehicles shift from petroleum to electricity they improve energy security which in New Zealand and Australia produced in stable price and locally.New Zealand’s largest import is petroleum(Overseas Merchandise Trade 2015) and this is the reason for the price volatility.Fluctuation in currency and prices of commodities while reducing risks entirely is important for their economy. Switching to electrical vehicles by internationalization of Arrival could be a road to boosting the economic growth of the two countries.
Economic growth:Electric vehicles purchased from Australia and New Zealand will be beneficial to the economy of the countries.The largest source of revenue in the Australian government is the fuel excise which funds the maintenance and construction of roads.Electrical Vehicles is studied to provide an increase in the government revenue and hence a net benefit to both government and the society.The advantages as compared to disadvantages of the internalization of Arrival carries more weight to the economy.Electrical vehicles is beneficial over petrol as they increase the income tax by negating government from spending on fuel as it distribute expenditure to other job intensive industries.According to analysis,if electric buses are adapted, they may contribute a higher benefit to the government supposing they replaced diesel-powered buses.The electric vehicles for New Zealand and Australia is forecasted to benefit the countries for the next 10 years.The loss encountered in fuel excise is made up for in health andand environmental benefits and savings on strategic fuel.The electrical vehicle adaption as compared to that of New Zealand is low but shows improvement on sales over the years.
Competitor analysis of Australia as compared to New Zealand
The comparison of both countries on Arrival globalization shows that they have pursued approaches that aid in the expansion of electrical vehicles.According to the analysis the electric vehicles is likely to be more common in New Zealand without any intervention from the government as compared to Australia that ha more policies in place that can familiarize locals with the electric vehicles.In Australia, the capital costs are much higher and therefore need reduction in tax or any other regulations that can be able to attract the consumer to purchase the electrical vehicle.In New Zealand the dilemma is whether the government is open to invest in an emerging technology even though it is a long term investment and therefore the returns are not instant.Even though policies that encourage the switch to electric vehicles have been put in place, there are still policies on general motor that causes major greenhouses gases.Infrastructure in New Zealand is prone to face growth as they are being led by policy measures that have been seen to succeed globally. They have created and improved awareness through creating knowledge on the importance of utilization of electric cars as compared to other motor vehicles as this aids in its growth.Another great advantage of this is that it aids in providing clear directions on the intentions and ways through which the government should invest in climate and eradicate barriers and avoid uncertainties.Towards the end of 2021, there was a rule that was passed and was directed towards an existing exemption from the road user charges that are normally payable by owners of non-petrol vehicles so as to develop a project for funding road construction and maintenance. Within the same package, road controlling authorities will be able to allow electric vehicles to utilize high occupancy and bus vehicle lanes and to designate parking for electric vehicles charging points.
The exponential growth in New Zealand electric vehicles is focused on expanding in the future and the policy measures are not particularly forceful.However there was no introduction of fuel efficiency standards.There was a need to introduce such standards which came up in 2008 but was later dropped after change by the government.The generation of electricity makes electric vehicles a good idea for proposal and electricity companies are in a position to exploit market opportunities.The installation of a network of high speed charging stations done by the private sectors comes in as a factor of great competition.This is ahead of demand and work such as bulk purchasing to increase choices of customers and reduce prices.
In Australia, the uptake of electric vehicles is slow.Analysis shows that in 2014, sales were 948 out of 1.08 million vehicles sold.The government and the local authorities provided support to charge infrastructure as well as providing free charging and modest registration discounts.There has also been air pollution rules that came up as a result of emissions.The rules were introduced in the 1970s.Fuel efficiency standards in absence is an important part of the background.Barriers that hinder the introduction and utilization of electric cars have been removed.The barriers included fringe benefit tax and the luxury car tax that imposed penalties on expensive cars. There is a scheme that is voluntary that can only work out with regulation so that the average of carbon monoxide emission of new Australian cars is 45 percent below the European requirements.Even though fuel-efficiency presented the lowest cost opportunity to minimize emissions across the economy,the federal government decided against compulsory light vehicle emission standards.This allowed car owners to recover the additional costs within three years from fuel savings.The government established a ministerial forum in 2016 on vehicle emissions to reconsider emissions standards and find other possible ways to solve the issue.Thereafter the climate change authority recommended that carbon dioxide emissions standards be introduced for light vehicles and not forgetting heavy vehicles in return.The Australian government was noted that they did not have such standards already.The authorities went ahead and provided figures to prove that electric vehicles have a greater advantage over other motor vehicles under the current electricity generation. It was noted that the direct electric vehicles financial incentives would be a more expensive way to reduce emissions.
Recommendations
Based on analysis, New Zealand shows enthusiasm about electrical vehicles and has put emphasis on changing and improving their transport sector to be very efficient.The electric vehicle policies for new Zealand has given us the conclusion about the globalization of Arrival.There are clear policies in New Zealand that encourage electrical vehicles hence connected to greenhouse gas emissions,energy security,air and noise pollution as well as energy efficiency.Public policy is identified as the main driver for the uptake of electric vehicles.Infrastructure, public awareness and capital cost is unlikely to produce the needed momentum.New Zealand as well as Australia does not regulate fuel efficiency.It may be impossible without advocating for fuel efficiency to promote electric vehicles.With this New Zealand may not succeed to introduce electric vehicles if they do not advocate for this.Policy for electric vehicles has to be a mobility strategy that can take an approach to improve both urban and rural settlement.In order to be adapt the electric vehicles policies relevant,clear and efficient has to be put in place.These could be policies that are linked directly to carbon dioxide emission should be put in place as it does no contrast to any energy emissions through electricity.The policies should not only be restricted to a subset of vehicles rather than to all.The policies have to cover a time span that is from the time of purchase and all through out to time of ownership of a consumer.This will help as it becomes clear during the decision of a consumer to replace the vehicle to one of choice.Incentives should be put in lace that are targeted to promote the use of energy fuels or advanced technology.An uptake of electric vehicles is rare in jurisdictions that do not have important fiscal incentives for supporting fair prices.The prices are important to electric vehicle purchase without any form of price support.There are however other factors that affect the purchase decisions.
After a wide analysis on internalization of Arrival into the New Zealand and Australia market,one is impelled to return to reason discussed.Electric vehicles have therefore been proven to be economical as compared to vehicles using fuel generally.The motive of encouraging the use of electric vehicles is found in the externalities and other imperfections on market strategy that bring us to the utilization of fossil fuels in harmful ways.Introduction of electric vehicles is a solution not only to fuel economy but also to air pollution, noise, climate change, energy security, and energy efficiency at large.The evolution of electric vehicles has also resulted to reduction of carbon monoxide emissions.It has also addressed the issue of pollution,GHG emissions and efficiency in between the measures for motor vehicles.
In a better visualization of the policy context of electric vehicles, it is very important to consider widening of views of measures of measures along this spectrum.
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