In: Economics
At the time of decision making process of an automobile manufacturer, he needs to ensure that the country is infrastructurally ready to use the electric vehicles. There should be appropriate number of charging points so that the customers do not find any difficulty in charging the vehicles.
Moreover, the mindset of the customers need to be judged whether they are ready to switch from gasoline driven vehicles to electric vehicles. The way they are going to dispose off their current vehicles in use and switch to electric vehicles.
They also need to consider the rules and regulations passed by the government in order to adopt the electric vehicles.If the government has made compulsory, there is no way out to escape away from the regulations.
National Society of Professional Engineers Code of Ethics state that the engineers should involve in manufacturing of certain products which do not cause any harm to the society and to the environment. Thus manufacturing electric vehicles would protect the environment in two ways, not depleting the already scarce natural resource petrol or diesel and no pollution being caused to the environment.
The dilemma arises as the manufacturing electric vehicles incur high expenditure by the manufacturer , so whether the company should manufacture electric vehicle or continue manufacturing petrol or diesel driven vehicles. Their profit margin also depends on the decision and the decision to be taken cautiously. For example, Tesla is highly committed to environment protection and innovation and thus switch to electric vehicles, whereas companies like Maruti being less innovative ahve not even started with electric vehicle manufacturing.
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