The impact/effect of electric vehicles on automotive industry.

Does electric vehicles have an impact on the automotive industry?

Will it cause changes to the automotive industries ecosystem?  Which includes manufacturers, end customers and government regulations.

Electric vehicles                                 Automotive industry




Why is this question important? (i.e. the motivation of the study)


· Why is the question interesting?


· From whose perspective are you undertaking this study?


· Who will benefit from this research and why?


· Provide evidence (citing papers or showing data) to your claims.

It is interesting because the topic revolves around a recent scenario of emergence of electric cars and how it will change

the world around us in the coming future and to research the depths of the situation to get more knowledge about the future

of the automotive industry which as a result makes it more motivating to study.

Germany will stop the sale of all new petrol and diesel cars from 2030, Scotland from 2032,

and France and the UK from 2040.


The business perspective of the already existing automotive companies, who have been in the market from centuries,

And are the market leaders of gasoline production cars.


Business, public and the government will benefit from this study as the shift to electric was once considered far off and

unlikely for many people, the rising concern for climate change and sustainability has helped sway public opinion towards

the need for transportation based on alternative energy. As more people invest in electric vehicles, the automotive industry

is bound to experience some serious changes.



What is the underlying theory?

Describe the underlying theory/ies that is directly related to your research question, i.e., why X causes Y and through what channels the causality takes place. In other words, what is the economic explanation which says that if we change X that would change Y. Cite few high quality papers that discuss these theories (seminal and the most recent ones).

Underlying theory here is that how the conventional auto industries that are manufacturing fossil fuel burning vehicles

are affected by the electric cars.

Already existing literature suggests that the electric car production is negatively affecting the conventional industries as

the time is passing by and till 2025 there will be a heavy shift as the production of electric cars will increase from 1 million

today to around 25 million.

What is (are) your specific hypothesis (hypotheses)?

Here please state each of the specific hypothesis that you want to statistically test. Each hypothesis should be very precise and clearly predict the direction of relation between the key variables (concepts) of interest.


H1: Ceteris paribus, better disclosure standards leads to higher firm valuation.

Note: Here it clearly states that if we keep everything else constant (Ceteris paribus) there is a positive relation between the conceptsdisclosure standards and firm valuation. Thus, in the following equation if is firm valuation and  is disclosure standard then we should expect β1 to be positive in sign and statistically significant.

You can have more than one hypothesis.


H1: Ceteris paribus, better decision-making leads to higher firm valuation.


Y it=∝ +β_1 X_1t+〖β_2 X〗_2t+〖β_3 C〗_1t+⋯+〖β_n C〗_nt+ γ_t+δ_i+ϵ_it



H1: Electric vehicles will impact the sales of conventional automotive industry negatively

H0: Electric vehicles will not impact the sales of conventional automotive industry negatively

What is your specific contribution that is not there in the literature?


· Which area of literature is your study contributing [cite few high quality (4*) papers (see the web link below) related to this area of literature].


· Cite high quality (4*) papers that are closely related to what you are proposing and state how your study is going to be different from them.

· Explain what new we will learn from your study that we do not know from existing literature.

Note: This is the most important part of your proposal. Your contribution needs to be considered significant and material enough. The ‘contribution’ is considered ‘meaningful and significant’ if you can convincingly achieve any one or more of the following:

· It addresses a real world problem

· It significantly impacts knowledge in which you generate a novel question that is interesting and material enough to be investigated.

· It fills a significant gap (lack of understanding) in the literature

· Generates and advances theory

· Produces salient novel and unexpected results

· Addresses a hard-to-solve research issue

· Introduces new procedures/models

Following cannot be considered significant contribution:

If it merely reconfirms a theory/conjecture/question using different dataset or conducting the tests in a different context (jurisdictions/economic periods etc.) unless you can convince that the dataset and/or context is very unique and the investigation is producing (or expected to produce) something different or unexpected result than we already know.

Journal rating list:

The topic I have chosen addresses an upcoming real-world scenario and revolves around a concept that is very new.

with the help of relevant theories, I will compare the financial impact of electric vehicles on the automotive industry.

With the help of primary research and literature this topic could also fill in the lack of understanding of the topic

as the scenario is quite recent and in-depth research could further clarify certain problems that could be

relevant to the future.


The sector could either be affected in a positive way or it could possibly it could heavily impact the economy

which could result in a potential downfall for the sector. Machinery, expertise could be quite expensive for the

financial aspect of the business as it is quite niche.




We add to the ongoing debate of whether Eco motor cars deters or encourages the financial sector to do better

after being legalised.




Show the general regression equation with your dependent variable, key independent variable/s and the control variables.


Example model:

Is the dependent variable for ith firm and t year

Are independent variables of interest (you can have one, two or more).

Are control variables

Is the time fixed effect,   is the unit (firms) fixed effects and  is the error term



What data do you propose to use to test your hypothesis?


· Specifically define each of your variables and describe your data.

· Complete the variable description table below.

Global data plc
What method/s will you apply to test your hypothesis?

Explain why this method is ideal for empirical estimation of your econometric model.

What are the advantages of this method over others?

Is this method most recent and sophisticated enough to address the concern of various forms of endogeneity? Particularly, how does it deal with:

·  Omitted variable bias and alternative explanations

·  Reverse causality

·  Sample selection bias

Read the following paper to understand the concept of these issues:

Provide evidence (citing papers or showing data) to your claims.



Difference-in-Differences (DiD) is shock based method whereby credible causality could be established using the shock
as exogenous event/shockthat triggers changes in the independent variable.
In this study, we use DiD approach to determine the effect of electric vehicles on the financial sector of the

automotive industry and its financial activities.


Variable description table

Sample size:For how long this data set is available and for how many firms. Clearly discuss the sample selection.

Frequency:Yearly, Quarterly or Monthly

Variable Description

What is this variable? What is the unit? If constructed, how it is constructed? What concept does it capture and why? What is source from which this was obtained?

Economic justification of including the variable (cite papers that use them).


Dependent variable/s


Automotive industry
Automakers NA
Production NA
Key independent variable/s ( Electric vehicles
Control variables


Vehicle prices


Cite all the key papers (8-10) in this proposal and place a reference list here.



Fama, Eugene F., Market Efficiency, Long-Term Returns, and Behavioural Finance (February 1997). Available at SSRN: or


Altuwaijri, Basmah, Investors’ Sentiment and the Stock Market Behaviour: An Empirical Analysis of the Saudi Stock Market (December 24, 2016). Available at SSRN: or

Essays, UK. (November 2018). Comparative Study on CSR Behaviour Across Industries in Mauritius. Retrieved from


    Customer Area

    Make your order right away

    Confidentiality and privacy guaranteed

    satisfaction guaranteed