This document summarizes opportunities for an electric vehicle manufacturing business in the Rio Grande Valley region of Texas. Key points include:
- The region has a stable retail economy and proximity to Mexico, allowing for business and electric vehicle sector growth across the border.
- Infrastructure like electric charging stations needs to be constructed on local highways to support electric vehicles.
- Demographic and economic trends in the auto industry suggest continued growth and rising profits for electric vehicles and hybrids. The aging vehicle fleet in the US also supports demand.
- Low costs of living and manufacturing in the border region cities of McAllen and Reynosa provide advantages for a production business.
2. UN – THEMATIC 6, LOW CARBON
ENERGY AND SUSTAINABLE INDUSTRY
Seed proposal is aligned with the United Nations Action Agenda
for Sustainable Development
Act now:
• Innovate alternative energy at the local level and expand out to
neighboring countries. Retail in the Rio Grande Valley is economically
stable and highly profitable due to tourists that frequent the retail
shops in the RGV area.
• When seizing the opportunity to conduct business (electric fleet
vehicle manufacturing) in the Rio Grande Valley area, the electric
energy sector will have an ability to branch out across the
Mexican/American border. This will allow for continual growth into our
neighboring country.
http://unsdsn.org/2013/06/06/action-agenda-sustainable-development-report/
4. RV COMPETITOR ANALYSIS
• The industry has very low market share concentration; small
manufacturers and private operators make up the majority of
revenue.
• Demographic trends that support the industry (such as the retirement
of baby boomers) and sustained high trade volumes will continue to
drive growth through 2018. During the period, revenue is forecast to
approach prerecession levels.
• Profit is projected to rise significantly after severe losses incurred from
2008 to 2010. However, the industry will face increased pressure from
environmental concerns regarding fuel emissions, though the
growing presence of hybrid-electric vehicles will likely soften this
threat.
Source: http://www.prweb.com/releases/2013/6/prweb10833913.htm
5. NAVIGANT RESEARCH 4Q 2013
• Growth in light duty 48V systems sales through the
end of the current decade will be predominately in
Western Europe, mainly because this region is the
most aggressive in implementing fuel economy and
emissions regulations.
• Navigant Research forecasts that total global sales
for light duty vehicles with 48V electrical subsystems
will reach nearly 13.5 million by 2023.
6. VIDEO - MCALLEN ECONOMIC
DEVELOPMENT COUNCIL
Low cost manufacturing in border cities McAllen and Reynosa
http://youtu.be/pzJD7HyFqXM
8. RECENT TRENDS IN AUTO INDUSTRY
• U.S. light vehicle demand has recovered to near prerecession levels; in fact, June’s seasonally adjusted
annual sales rate of almost 16 million vehicles was the
highest since 2007. Assembly of light vehicles (passenger
cars and light trucks) in the US has also returned to near
pre-recession levels.
• Susan Helper, Chief Economist, Department of
Commerce, July 9, 2013
• http://www.esa.doc.gov/sites/default/files/reports/docu
ments/shortreportinterpretingrecenttrendsintheusautoind
ustry57.pdf
9. DEMAND FOR PRODUCTION
• Stably growing US demand, due in part to high
average age of cars on the road; at over 11 years,
it is at record levels (Izzo, 2013). This demand (which
has been growing despite overall weakness in the
economy) gives firms that produce in the US a
transportation cost advantage, since they are able
to serve a large number of customers nearby.
• http://blogs.wsj.com/economics/2013/02/16/number-of-the-weekaging-fleet-could-boost-car-sales/
10. VEHICLE WRAPS – LOCAL BUSINESS
• Vehicle advertising generates between 30,000 70,000 daily vehicular impressions
• Investment Analysis: Measuring the Value of Vehicle
Wraps, A New Segment of the Outdoor Advertising
Market
~By Ryan Hubbard,
ARD Ventures
11. ELECTRIC VANS & VEHICLE WRAPS
The American Trucking Association’s study; The Visual
Impact of Trucks in Traffic, showed:
96% noticed truck side ads
98% said fleet graphics created a positive image for the
company
96% said fleet graphics had more impact than billboards
75% of people developed an impression about a
company and
• its products
• 29% would base a buying decision on the impression
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12. VEHICLE WRAP PSYCHOLOGY
• Vehicle wraps can reach people when they least
expect it and their minds are more open. The fact
that a person uses a brand is likely to create
awareness of the campaign as a result of the
known psychological phenomenon of Selective
Perception.
• Ads on Wheels White Paper