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Mass BEV adoption: analysing the challenges facing existing service focussed SMEs in the UK due to the automotive industry transformation Angus Brodie, Division of Business, Law and Social Sciences, Abertay University Email: 1203872@abertay.ac.uk Supervisors: Prof R Kouhy and Dr S Samuel
Project Overview
Gaps in the literature
The shift from ICE (Internal Combustion Engine) vehicles to BEVs (Battery Electric Vehicles) in the automotive industry is one of the most significant industry transformations in several decades (Schmid, 2020). BEVs achieved 11.6% market share in the UK in 2021 (SMMT, 2022) and by 2025 this is projected to rise to 25% (SMMT, 2021).
Industry transitions- no existing literature that analyses the preparedness of existing SMEs in the UK for the challenges of transformation in the automotive industry
(SMMT, 2021)
Manufacturers have been the main focus when considering the impact of this industry transition. However this transition will impact all parts of the automotive industry. This research will study service focused SMEs in the automotive sector. Research Aims: 1. To identify and analyse the challenges facing existing service focused SMEs in the UK due to the automotive industry transformation caused by mass BEV adoption. 2. To investigate the extent to which this transformation is creating entrepreneurial opportunities for new venture creation.
SMEs in the automotive industry- this research will also help address the gap in automotive SME literature by studying non-manufacturing SMEs involved in activities such as vehicle repair and maintenance, used vehicle sales and tyre fitting Entrepreneurs- there is a gap in existing entrepreneurial literature regarding entrepreneurial opportunities linked to the BEV transformation of the automotive industry. Existing entrepreneurial literature related to BEVs largely focuses on large scale opportunities for market entrants.
Research Questions RQ1: To what extent do existing service focussed SMEs automotive industry possess the financial and human resources to successfully adapt to the industry transformation caused by the mass adoption of BEVs? RQ2: To what extent is the industry transformation caused by the mass adoption of BEVs creating new entrepreneurial opportunities to establish SMEs? * Both of the RQ’s will then be applied to small and medium sized enterprises as part of the comparative analysis process
Proposed Methodology Data Collection Data will be gathered from SMEs operating in the wider automotive sector in the UK and entrepreneurs who have recently established enterprises operating in this sector. The method of data collection for this part of the research is likely to be questionnaires and interviews. Data Analysis This research will adopt a qualitative approach to data analysis. The specific qualitative method proposed is framework analysis which generates themes by following a five-step data analysis process: familiarization, identifying a thematic framework, indexing, charting and mapping and interpretation. NVivo software will be used to analyse the qualitative data. This software has been selected as it helps ensure the qualitative data analysis process is conducted in an organised and structured manner (Ozkan, 2004).
References Ozkan, B.C. (2004) ‘Using NVivo to analyze qualitative classroom data on constructivist learning environments’, The Qualitative Report, 9(4), pp.589603. Schmid, M. (2020) ‘Challenges to the European automotive industry in securing critical raw materials for electric mobility: the case of rare earths’, Mineralogical Magazine, 84(1), pp.5-17. SMMT (2021) SMMT new car market and parc outlook to 2035 by powertrain type at 11 June 2021. Available at: https://www.smmt.co.uk/wp-content/uploads/sites/2/ SMMT-new-car-market-and-parc-outlook-to-2035-by-p owertrain-type-11-06-21.pdf (Accessed: 6 September 2021) SMMT (2022) Covid stalls 2021 UK new car market but record EV sales show future direction. Available at: https://www.smmt.co.uk/2022/01/covid-stalls-2021-u k-new-car-market-but-record-ev-sales-show-future-dire ction/ (Accessed: 12 January 2022)
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