The Viability of Plug-in Hybrid Electric Vehicles in the Kenyan Market: A Strategic Study

Abstract

Numerous factors point toward the requirement of a change in the vehicle industry in the Kenyan market, and in the global environment in general. Environmental pollution, lack of efficiency, and high costs of petrol and traditional fuels, are just a few. Looking into options to bring this required change, we find that technology has brought us to a stand-off, whereby although the electric vehicles of today would prevent many of the flaws with traditional fuel driven vehicles, the standard requirements set by drivers; such as long distance travel and regular fuel station stops, would not be met by the electric vehicles. Therefore we need to look at a mix between the benefits of electric and traditional vehicles, and that is the PHEV. This paper covers various aspects in determining the viability of introducing Plugin Hybrid Electric Vehicles into the Kenyan market. The objectives have been categorized into four major aspects including the market viability, the technical viability, the economic viability and lastly a proposed business strategy which should enable quick adaptation into the market. The target of the study is the vehicle distribution agencies in Kenya, and both quantitative and qualitative data collection methods are employed. The data is analyzed using content analysis for the qualitative data and ANOVA for the quantitative data. The results of the data analysis show best practices when introducing PHEVs into the Kenyan market; such as the improvement of the electrical infrastructure, and the partnering with supermarkets to introduce charging stations in their parking lots. These best practices are then translated into a business strategy which is shown in detail. Analysis of various countries which have adapted the idea and brought in PHEVs into the market is then covered showing the feasibility and comparing it with the Kenyan market using the differences in fuel and electricity prices as well as the economy, living standards and environmental factors.

Keywords: Transport technology, Plug-in Hybrid electric vehicles