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Electric Cars Manufacturing Plant Business Plan

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Generally, when a person starts a business, he needs effective and efficient marketing strategies to attract customers towards our product. Providing product knowledge and educating them on how it will be useful for them in smooth travelling. All these are essential elements that need to be completed to start a new business (Hasler, 2002). As far as this engineering field is concerned, we have chosen a beneficial and productive idea regarding ‘Electric Cars’ selling all over the country. Likewise, these electric cars will make the market because people want to experience every new product, i.e., hybrid vehicles, electric vehicles (Sawalhi, 2004). This is why we have decided to open a showroom of electric cars because this is an era of technology where we have to reduce fuel consuming vehicles and install more plants to manufacture electric and hybrid cars. As we know that the locality of the business matters a lot; this is why we moved to China, the world’s best electric car manufacturer. China’s reason for manufacturing these electric cars is cheap labour, but they are highly competitive in the electrical engineering field. It will help us in selling electric vehicles more effectively and efficiently.

Electric Cars Manufacturing Plant Business Plan

Note: China had sold more than 579,000 electric cars in 2017 and 1,204,000 electric cars in 2019. It means the market of Chinese manufactured electric cars is growing rapidly.

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Business Profile
Industry:                           Automobile

Makers:                           ZEEN Electric Cars

Products:                            Electric Cars

Location:                        Manufacturing Plant in China

Headquarters:                 California, USA

Annual Revenues

In this part, we shall predict and estimate the total annual revenues of ZEEN Electric Cars, so that we would be able to make more decisions regarding spending of these revenues in R&D along with the induction of modern and advanced technology to produce new innovative product effectively and efficiently (Nickle, 2002). The annual revenues estimation is enclosed in the table given below:

ZEEN Electric Cars – Annual Revenues
To calculate total annual revenues of the company, we use a formula i.e.

Total Annual Revenue =  (Average price per unit sold)*(number of units sold)

For instance, we sold 1500 electric cars in 2019, and the average price of each car is estimated to be $3000.

After putting the estimated values in the Formula i.e.

Total Annual Revenue =  (1500)*(3000) =  $4,500,000

Here is the estimated total annual revenues of ZEEN Electric cars manufactured in China are accounted for $4,500,000. The company has gained this revenue by selling 15000 units of electric cars for $3000 each.

Estimate the Total Cost

In this part, we shall predict and estimate the total cost of ZEEN Electric Cars so that we would be able to make more decisions in terms of estimated cost so that we would be able to allocate available resources in such a way that we will experience less worth in the future (Henrique, 2016). We shall calculate the total cost of units we manufacture by using all items given in the table. The total cost estimation is enclosed in the table given below:

ZEEN Electric Cars – Estimated Total Cost ($)
Land Acquisition

Planning and Feasibility Studies

Architectural and Engineering Design

Construction, i.e., Materials, Labour and Equipment

Construction field supervision

Construction financing

Insurance and Taxes occurred during construction

Owner’s office overhead

Equipment and Furnishing are not included in the construction.

Inspection and Testing



Total Cost (Estimated)

$1,310,000 (2000 Sq. Meter Plant area)

$15,000 (1-1.5%)


$22,00,000 (Based on average sq. meter area)



$18,00,000 (Bank Loan)



$15,000 (Chinese Manufactured Furniture goods will be preferred)






The above table depicts the total estimated cost of ZEEN Electric cars after making a thorough analysis of the Chinese market in terms of construction, material, land rates, etc. The land acquisition rates in China have been changing since 2012. In 2012, it was 4389 Yuan Per Square meter. If we convert it into USD, it would be $655.5. According to the estimated cost of $5,387,000, we need sufficient money and regular bank’s assistance to initiate and run the business in China and spread it all over the world soon. 

Running Cost  

In this part, we shall predict and estimate the total running cost of ZEEN Electric Cars to make more decisions regarding spending of earned revenues in R&D and, most importantly, fulfil all the components of running cost of the business effectively and efficiently. Running cost is refers to our regular spending on necessary business operations like Payroll, Electricity, Rent, and other petty cash expenses, which are essential to include in the running cost of ZEEN electric cars. For this purpose, we need to have all items given in the table to calculate the total estimated running cost of the business effectively and efficiently. The annual revenues estimation is enclosed in the table given below:

Running Cost
Land and Rent, if applicable.

Operations Staff

Required labor and material for maintenance and repairing

Required periodic renovations

Insurance and taxes

Financing activities


Owner’s other expenses


Total Running Cost (Estimated

$12,00,0000 (Annual)

$2,00,000 (Salaries)

$1000 (Regular basis)







$13,506,000 (Yearly)

Above-table is ironically showing all running cost items, which are included in calculating the overall running cost of ZEEN electric cars. Based on this running cost estimation, we shall reduce the overall cost by implementing effective and efficient cost management strategies, i.e., Minimization of overhead, Capitalized technology, Provision of training to employees to manage the time, supplies could be outsourced, etc. In this way, we would reduce overall cost, i.e., total cost and running cost successfully.


Conclusively, electric vehicles make up a somewhat level of the total vehicle market in the pre-summer of 2020. Yet, their charm continues creating as the automakers develop their span, execution, and style and as resuscitating ends up being speedier and less complicated. Clients looking for zero-spreads are driving by and have an expansive overview of vehicles to investigate. They have a broad grouping of body styles and a couple of different worth core interests. To make it straightforward for you, we’ve amassed them no matter how you look at its place and recorded them organized by their joined MPGe examinations from the EPA. We’ve similarly joined each one’s city and thoroughfare figures, also, for good measure. MPGe is an assessment of an electric vehicle’s adequacy, much like the miles-per-gallon rating of any customary gas-or diesel-controlled car, truck, or SUV. However, a higher MPGe rating doesn’t, for the most part, contrast with a class-driving arrive at a figure. We’ve given both of these numbers so you can pick the best EV for your family, lifestyle, and driving inclinations. 

  • Hasler, C. M. (2002). Functional Foods: Benefits, Concerns, and Challenges. The Journal of Nutrition.
  • Henrique, M. (2016). Electric Vehicles in China: BYD Strategies and Government Subsidies. Strategic Management.
  • Nickle, H. (2002). Design and Analysis of Aluminium Air Battery System for Electric Vehicles. Journal of Power Sources.
  • Sawalhi, N. E. (2004). Cost Management Strategies. International Journal of Construction Management.


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