THE TESLA MODEL 3 IN FRANCE
INTRODUCTION
A. The electric car industry in France
a. Overview of the competition
b. Potential substitutes
c. The regulation
d. Challenges for Tesla
B. The French culture
a. Tesla in France
b. Analysis of the culture through Hofstede’s framework
c. Customer expectations and specificities
d. Challenges for Tesla
CONCLUSIONS AND RECOMMENDATIONS
APPENDIXES
REFERENCES
EXECUTIVE SUMMARY
INTRODUCTION
A- Overview of the competition
Europe : second largest market
The French market for electric cars has registered a vigorous growth in the last years and now represents “the largest electric vehicle market in Europe” (France Diplomatie, 2016: http://www.diplomatie.gouv.fr/en/french-foreign-policy/economic-diplomacy-foreign-trade/facts-about-france/one-figure-one-fact/article/france-is-the-largest-electric) and the fourth market in the world (https://www.iea.org/publications/globalevoutlook_2013.pdf).
compound annual growth rate of 50% between 2012 and 2013 (McKinsey, Electric Vehicles in Europe, gearing up for a new phase, 2014, p.10).
(https://www.mckinsey.de/elektromobilitaet)
Electric vehicles : 3,1% of the global passenger car market in France in 2013: 8,779 cars registered (France Diplomatie)
Battery Electric Vehicles
Electric Vehicles
• French manufacturers and foreign manufacturers:
o Renault with Zoe (43% or 36 % of the market)
o Nissan Leaf
o Golf GTE
o Renault Kangoo
• Foreign manufacturers: Toyota
France is consolidating its leading position within Europe. In 2013, the French market for electric and hybrid vehicles represented 3.1% of the global passenger car market in France. Compared to 2012, sales of electric vehicles (passenger cars and light commercial vehicles) increased by 50% and sales of hybrid vehicles increased by 60%. In total, 8,779 electric passenger cars were registered in France in 2013. Sales increased by more than 50% compared with the 5,663 vehicles registered in 2012. Sales volumes in France were twice as high as in Germany (3,000 cars) and Norway (2,500 cars).
• Bollora BlueCar
2- Potential substitutes
• Hybrid vehicles
• Local electric car sharing systems: “Autolib” in Paris, introduced on the initiative of Mayor Bertrand Delanoë, and “l’Auto bleue” in Nice, “Sunmoove” in Lyon and “Bluecub” in Bordeaux, etc.
• Carpooling: Blablacar
• Uber
• Public transportation systems (trains, subways …)
McKinsey p.53: shift towards mobility as a service : “Mobility as a service” is changing the traditional model of car ownership (and the related value chain) with an objective of meeting consumer mobility needs in the most efficient way. Getting from Point A to Point B can be done in a multitude of ways and may mean using a privately owned vehicle for only part of the journey or not owning a car at all (especially in dense urban areas).
“One of the largest car-sharing programs is the ‘Autolib’ program in Paris, which was launched in 2011 and now includes over 2,000 full electric BlueCars, over 4,000 charging stations, and more than 100,000 registered users. The Bollore´ BlueCar uses a 30kWh lithium metal polymer battery and has a nominal range of 250 kilometers.”
3- The regulation
For consumers:
“Many European governments and cities (e.g., Norway, Denmark, the Netherlands, France, UK, as well as Oslo, Amsterdam, Paris, and London) are incentivizing consumers to opt for electric mobility, each with their own schemes.” (Mckinsey, p16)
The French government provides incentives to consumers to promote electric vehicles through environmental bonuses:
• Premium under bonus-malus system for green cars plus “Super-Bonus” for buying a green and scrapping an old car
• 6500€ per vehicle in 2014 (McKinsey, p 16)
• In Paris: reduced toll and parking fees
• CO2 reduction targets for transport: 95 g CO2/km cap by 2020 (McKinsey,p14)
• EV adoption targets: 2 millions EVS on the road by 2020 in France (McKinsey, p15)
4- Challenges for Tesla
• recharging infrastructure network in France (Agency for the Environment and Energy Management)
• Tesla supercharger stations in France
“Willing to pay a premium for environmentally conscious consumption” (McKinsey, P.11)
“Consumer demand taking off in 2013 and seems for futher expansion in 2014” (McKinsey, p.11)
“EV adopters in megacities” (McKinsey, p.11)
“A substantial share (almost 50%) of the passenger cars in Europe are not individually owned, but belong to a corporate fleet
Mitigate risks from oil fluctuations
2- THE FRENCH CULTURE
Hofstede
http://www.ipsos.it/pdf/european_car_drivers.pdf
a. Tesla in France
b. Analysis of the culture through Hofstede’s framework
c. Customer expectations and specificities
d. Challenges for Tesla
In Hofstede Framework analysis, compete to the United State, France is a country with high in power distance, it means that high class dominate on the lower class people; therefore,the power is highly controlled in upper class people. The law and supervision system strictly controlled and maintained by the government. Although the percentage of individualism is 20 percent lower than the United State, the French people are prefer to keeping their own private opinions, the communication more direct and everyone is allowed to speak and kept his or her opinion. “French people used to be independent at the age of 18. They like to do their own job they do not want to dependent on others or their parents.” This evidence indicates that French is an individualistic country. Moreover, The dimension of uncertainty Avoidance in French achieve the highest score, 86 percent French people are prefer clear rule and formal structure activities. This culture feature is the most difference to the united states, because French business rules and regulations are very strict, in most French companies, they avoid any types of the risks, the legal system of France is rigorous for any illegal activities.
In French, most people are prefer to riding bicycle and walking rather than driving cars. “In France the average age at which people buy their first new car is close to 55. Meanwhile the under-30s account for less than 10% of customers.” This fact reflects more and more to pollution, congested cities and fatalities. As a result, a sign in Paris electric car sharing service “AUTOLIB”, it has in this city, 17 million users. The French people want to build a France of green, economical cars. Also, they want lighter vehicles that will help to reduce consumption of fossil fuels. What’s more, the French love their cars, they have strong patriotic feeling. In tradition French culture, French people are still avoid those who make too much of their wealth performances and gorgeous cars , it is likely to be seen as arrogant and somehow show off their lifestyle, on the contrary, they are rooted in a pragmatic, safety, a fewer rich customers to buy Mercedes, Audis, BMWs or Jaguars.
Although Tesla company promote the electoral cars for reducing air pollution and fossil fuels, it still contains a lot of challenges in French. “the cheapest Tesla electric car will cost five times that when it launches. Tesla’s Model 3 will debut in March 2016 with a base price of around $35,000”.
Tesla’s Model 3 has a chance to be huge: http://www.businessinsider.com/teslas-model-3-has-a-chance-to-be-huge-2016-2
Hofstede: http://geert-hofstede.com/france.html
http://cleantechnica.com/2015/08/24/electric-car-sales-in-france-reach-record-of-new-car-sales/
Info on Tesla retail stores:
http://www.nurun.com/en/case-studies/tesla-motors-retail-kiosks/
Tesla youtube channel:
https://www.youtube.com/user/TeslaMotors
Tesla’s Model 3 has a chance to be huge: http://www.businessinsider.com/teslas-model-3-has-a-chance-to-be-huge-2016-2
References
http://www.lefigaro.fr/societes/2014/09/26/
20005-20140926ARTFIG00009-tesla-passe-la-vitesse-superieure-en-france.php
http://www.turbo.fr/actualite-automobile/792550-tesla-1000-model-vendues-france/
http://www.generation-nt.com/tesla-motors-france-voiture-electrique-actualite-1923896.html
http://bfmbusiness.bfmtv.com/entreprise/voiture-electrique-en-france-tesla-grimpe-vite-mais-la-zoe-reste-en-tete-942714.html
http://www.diplomatie.gouv.fr/en/french-foreign-policy/economic-diplomacy-foreign-trade/facts-about-france/one-figure-one-fact/article/france-is-the-largest-electric
http://cleantechnica.com/2015/08/24/electric-car-sales-in-france-reach-record-of-new-car-sales/
http://www.acea.be/publications/article/overview-of-incentives-for-buying-electric-vehicles
http://www.ft.com/cms/s/0/7dcff0c2-d654-11e1-b547-00144feabdc0.html#axzz43cKLvjT0
http://www.upworthy.com/for-less-than-8k-frances-new-electric-car-could-revolutionize-clean-transportation
http://ac.els-cdn.com.ezproxy.library.uvic.ca/S1364032114002949/1-s2.0-S1364032114002949-main.pdf_tid=25aa64fc-f006-11e5-b8ae-00000aacb35e&acdnat=1458634669_cf9d2529543f9ce6242359abbc25e037