![about volvo bus about volvo bus](https://preview.autofutures.tv/2019/08/01135848/Volvo-buss-domen-1-1068x752.jpg)
Other local companies in China included Ankai, Zhongtong, and Zhengzhou which were already large players in the electric bus industry. It had the state-owned FAW group which had the support from the Chinese government.
![about volvo bus about volvo bus](https://www.electrive.com/wp-content/uploads/2020/01/volvo-7900-electric-articulated-elektrobus-electric-bus-schweden-sweden-malmoe-2020-01.png)
Key IssuesĬompared to Sweden, China was a much larger and more competitive market. It is assumed that it is not unaware of the logistics and influence of the government, as well as local preference in the Chinese industry. It is also assumed that Volvo has supplied to China through a joint venture in Shanghai, therefore, it holds experience of the Chinese industry and practices. It is also assumed that Volvo holds the financial muscle to open up a manufacturing facility in China that can cater to the demand there.
![about volvo bus about volvo bus](https://www.team-bhp.com/forum/attachments/commercial-vehicles/1368215d1431061024-volvo-s-first-all-electric-bus-begins-public-road-tests-2volvo.jpg)
Since Volvo is not yet established in China, it is assumed that they will be setting up a manufacturing facility there. It is also not defined whether the company will be sourcing its parts and setting up a manufacturing facility in China, leveraging the cheap labor available to further reduce the prices. There is no information about the suppliers of parts, materials, and renewable energy for Volvo. This report will explore the key issues, evaluate the internal environment of Volvo and external environment in China to develop recommendations for Volvo’s plans for capturing a strong market share in the Chinese bus industry based on the True Value methodology. These and other facts make China one of the most attractive options for Volvo to implement KPMG’s True Value methodology. Therefore, in the attempt to mitigate air pollution, China was interesting in pursing the development and implementation of electric vehicles in urban areas. With a large industrial workforce and rising issues of pollution and smog, Chinese energy policy was aimed to take countermeasures against the rise in the environmental issues. Following questions are answered in this case study solutionĬhina is one of the most attractive markets for electric buses. Electric buses had a lower TrueTCO than diesel and biogas buses. So, the true total cost of ownership (TrueTCO) included the conventional cost of ownership added with socio-economic, environmental costs and tax incentives which were previously not accounted for. With the increasing competition in the transport market, one way that Volvo found to differentiate its electric buses was to partner with KPMG to provide data on the environmental and social costs of running diesel and fuel buses. Previously transport authorities and municipalities focused on the direct financial costs since the relevant data to estimate the social and environmental costs was not available. The KPMG’s True Value methodology enabled companies to assess their “true” earnings and understand the future earnings that were at risk. A part of the ElectriCity project was the partnership with KPMG to offer a more accurate depiction of the true cost of running on non-renewable fuel sources. This project revolved researching and developing the next-generation sustainable transport vehicles.
![about volvo bus about volvo bus](https://i0.wp.com/administracionytransportes.cl/wp-content/uploads/Transantiago-Marcopolo-Gran-Viale-4-Puertas-Biportal.jpg)
Volvo’s mission to offer efficient, clean, and safe transportation was what led it to developing the pilot project of ElectriCity in Sweden.