Lucid Motors SWOT Analysis And Unique Selling Proposition

The mission statement of lucid motors is “to inspire the adoption of sustainable energy by creating the most captivating electric vehicles, centered around the human experience”.

Lucid motors sees itself to create the most fascinating electrical vehicle that will be centered around all the human experiences. It sees itself to become the world’s leading luxury electric vehicle manufacturing company.

The saudi arabian electric vehicle has projected a double digit cagr growth rate regarding the growing technological advancements and innovation system. It has been estimated that the middle east of the north africa region is continuously growing at an estimated rate of 36% with saudi arabia. Saudi arabia has currently accounted for 52% sales of electric vehicles in the gulf cooperation council and 35% in the mena region during 2020 [1]. The global trends for supporting electric vehicles are also directly enhancing saudi arabia’s expectations regarding internal combustible engines vehicles where the majority of the vehicles given in the kingdom will be provided from saudi arabia itself.

Within the saudi arabian electric commercial vehicle market segment some significant collaborators exist. Apart from the existing competition among anhui ankai automotive co ltd, higher bus company ltd, china yuchai international ltd, ab volvo, tesla and others the taiwan foxconn technology group is willing to have a joint venture to make more electric vehicles along with saudi arabia [2]. The main plan of the joint venture is accelerated because the oil dependent kingdom is funding its economy for which the public investment fund will be able to help the saudi arabia business environment.

The primary target audience for electric commercial vehicles within saudi arabia are considered to be the executive level customers. Most of the electric vehicle manufacturing companies tend to target buyers living in urban or suburban areas of the major cities because within the rural areas most of the customers do not have the affordability of buying electric commercial vehicle cars which are considered to be a luxurious market segment. During 2019 to 2020 the saudi arabia automatic car sold 556000 and 436000 cars. The sales were projected to reach 543000 units by 2025 while electric vehicles only manufactured for 32000 units [3].

The primary competitors of saudi arabia electric commercial vehicle market segment are anhui ankai automotive co ltd, higher bus company ltd, china yuchai international ltd, ab volvo and tesla [4].

Saudi arabia has already declared that at least 30% of the electric cars coming into its capital would be estimated by 2020 as the biggest royal exporter of the world is seeking to reduce the plant warming emissions continuously [6]. The climate conference also stated that they have a plan to halve the carbon emissions within the city of 8 million people for the next nine years as the crown prince mohammed bin salman has placed to eliminate planet morning emissions by 2016 within the country’s borders.

Internal factors

Strengths (+)

Weaknesses (-)

· The primary strength of lucid motors is that tesla has already started paving the way for electric cars.

· The brand reputation of lucid motors within america is getting the primary competitive advantage for the company.

· Lucid motors have always maintained its quality of the products due to which it is able to hold its standard without having any direct competitor [5].

· Lucid motors are continuously gaining more confidence with the success of tesla electric cars.

· Lucid motors plan on focusing on the ultra-luxury segment is providing it higher profitability and better volume of production capability benefits [7].

· The high level of competition for lucid motors within the american market segment as well as other countries is impacting the brand reputation as well as pressurizing the competitive advantage of the company [9].

· The infrastructure for electric cars does not offer as much existence as it does for gasoline powered and hybrid vehicles.

· Tesla motors is continuously building its own superchargers which is providing a significant lack of competitive edge for lucid motors [1].

· Lucid motors are unable to provide greater battery life in comparison to tesla motors. For the year model the standard 100-kilowatt battery is being provided at a range of 300 miles [5].

External factors

Opportunities (+)

Threats (-)

· Advanced technology is creating better opportunities for innovation within the lucid motors manufacturing company.

· With the increase in electric cars demand worldwide lucid motors is able to get a better opportunity for expansion in different developing, emerging and developed countries [3].

· Lucid motors has a significant opportunity through its new manufacturing centre in casa grande.

· The company is offering easy access to different parts suppliers in mexico with different tax benefits [10].

· Lucid motors are facing its biggest threat through competitors’ industry and funding [4].

· Tesla is continuously pressurizing lucid motors in improving and innovating new models and technology within the electrical cars.

· The global crisis due to the pandemic has infected the automotive industry in which lucid motors operates to a great extent along with the purchasing power of the customers [11].

· Environmental awareness is continuously influencing the purchasing decision of consumers due to which the us president has also staked significant awareness regarding global warming that has become a significant threat for the automotive industry along with lucid motors [16].

The first product of lucid motors has been considered to be air grand touring from the lucid air series. The particular range of the air grand touring is considered to be up to 1050 hp³/ up to 516 mi range⁴. The range ratings have been assumed to be effective when the car is equipped with 19″ Wheels with the help of 520 dream edition, r/471 dream edition p/516 grand touring [8]

Lucid air is offering different elements to consumers. For the beginning it is bearing the capacity of travelling 300 miles on a single charge but also zero to 60 in a record of 5.6 seconds is a maximum speed of 125 mph. The benefit of this particular car is based on being in the position to plug the vehicle into any 120-volt wall outlet that seems to be an advantage for the customers [12]. Lucid air also provides the 17″ Vertical lcd that manages all the buttons through the touch sensor. The touch screen and the steering wheels are controlled through digital and instrument cluster pairs seamlessly the integration of media navigation communication cabin controls and vehicle data are equally provided within the prestigious luxury car being provided to the customers [15].

Lucid motors have now updated and introduced the lucid app that keeps the air owners connected and continuously up to date with the cars status as well as the location of the car [9]. This particular mobile application will have a few things to help the owners such as the remote climate can be utilized to set the inside temperature of the car. While selecting the optimal conditions the car will automatically adjust to the outside temperature before even opening the doors of the car. Lucid motors are also providing a significant feature where the owner of the car can monitor the progress as lucid air is the fastest charging luxury electric vehicle that any customer can buy so the lucid app is helping the owner to monitor the battery status along with the current status of charging or not. The tired pressure can also be measured with the help of integrated conversation with siri [6].

The significant business goal of lucid motors is to create a sustainable mobility without compromising on the quality of the cars that are liberating intuitive and design for the people. Lucid motors also aims at continuously improving and providing high priority to efficiency without any compromise on the production system of the car because it aims at making the cars of the company to be the world’s primary resources of luxury cars [1].

The customer goes of lucid motors within saudi arabia is considered to be the targeted audience of ultra-premium niche customer segment. Lucid motors is continuously aiming act providing the products and services to its executive level customers because the company primarily focuses on the premium luxury segment and it needs to improve the limited number of customers within the urban areas more concretely within saudi arabia [2].

Lucid motors are continuously building the new manufacturing facility in the saudi arabia kingdom which is expected to be finished by 2025. The company has estimated its revenue within the saudi plan to go up to 3.4 billion dollars over the next 15 years [3]. The continuous demand for luxury cars in the saudi arabia market segment is pushing lucid motors to help saudi arabia transformational goals and economic diversity by developing better sustainable transportation and energy.

According to the marketing strategy of lucid air the lucid motors company is rotating around the particular information where it is stated that “We don’t inherit the earth from our ancestors we borrow it from our children”. The current marketing strategy that lucid motors its planning on implementing within saudi arabia for its expansion of 2023 is significantly based on two essential parts such as the strategic placement of advertisements in magazines and newspapers along with the second part of bringing the vehicle in front of the customers through any documentary road trips across the entire saudi arabian regions [4]. The strategic campaign for the second part is entirely focused on introducing the vehicle to the customers who might become the potential target audience within the saudi arabian automotive market segment. The two significant strategies will be most effective in its marketing of the lucid motors brand while introducing the product to the potential client base and improving the advertisement marketing options within the extensive environmental locations.

Lucid motors are constructing a significant in death market research for expanding in businesses and operations in saudi arabia. The company is setting out to reach the environmentally friendly car which is offering efficiency, spaciousness and a luxury sporty look. Saying that within the first year the company will be able to sell 8000 to 10000 cars while in the two year period it is willing and forced to sell around 50000 to 60000 cars [6]. The targeted portion of information collection is based on the market research to identify the significant market trains of the electric vehicle automotive market segment in saudi arabia. The significant customer requirements and demand trains within the market segment will also be considered as primary data so that the customization in the individual luxury cars can be done properly.

The continuous enhancing competition within the saudi arabia electric vehicle market segment is a significant challenge that the lucid motors need to target in achieving. Through its sound system with the noise cancellation within the luxury car that 29 speakers sound system is a significant competitive advantage that the company will be providing to the customers [5]. The global pandemic is another significant challenge which has directly impacted the expansion plan and the profitability range of the company to great extent. The pandemic has led to a global financial crisis due to which the significant luxury car demand has slightly deteriorated in comparison to 5 years back.

The executive level customers will be provided with appropriate satisfaction while bringing together the experience from bmw, tesla and other companies which are dealing with electric vehicles. The entire product range needs to be evaluating ways in which the efficiency can be maintained for lucid motors products but at the same time the price range can be flexible for many customers who are willing to buy the cars for unable to upload it due to the global financial crisis [7]. The significance strategy employed by the lucid motors company will be entirely based on its marketing strategies so that the customers are able to know the product in a better way.

The unique selling proposition of lucid motors is entirely focused on some of the products and services it provides. According to the usp of lucid motors it has been claimed that there are three primary technology advantages that lucid motors claim to have over tesla.

· Bi-directional charging is a significant technology test lucid air sedan is planning on providing that will facilitate the vehicle to vehicle charging and the vehicle to greek charging purposes. This particular technological advantage will provide greater convenience solutions in case of emergency situations [8].

· The efficiency of any electric vehicle is an important part that the company has to offer. It has been guaranteed that the battery efficiency of lucid air is better than tesla model s. The higher efficiency level of the electric vehicle with a smaller battery package is providing better efficiency in the miles while lucid air is providing 517 miles a vehicle range tesla model s is providing 412 miles for the vehicle range [16].

The drive unit provided by lucid motors is much more impressive because it consists of a permanent magnet motor transmission and power inverter. The company is claiming to have a higher power to weight ratio due to which the drive unit is highly convenient in comparison to its rivals which are closer to ratio of 3. Tesla has the drive unit where 3.2hp/kg is existing within the chart but lucid motor is providing 3.0hp/kg for its drive unit [9].

The branding strategy of lucid motors is entirely based on providing new branded unique opportunities will be utilise in order to estimate the automotive company and its branding identities. Lucid motors will place its no compromise idea while producing the significant innovative designs and products [15]. In most of the cases the aspiration of branding will come from the luxurious product that personalization freedom possibility and space will be delivered through the products.

The products and cars manufactured by lucid motors are entirely electric and it does not depend on any other supplement of petroleum. Hybrid vehicles are continuously becoming more innovative and environmentally sustainable [9]. The electric vehicles are not only luxurious and prestigious but they also have significant performance where the extensive competitive advantages are retained for the customer.

The pricing strategy of lucid motors is based on weighing the benefits for the customers. In case any client believes in purchasing a vehicle, lucid motors is establishing sophisticated vehicles in comparison to traditional petroleum-dependent vehicles which are cheaper and faster. The electric vehicles are performing on the basis of their pricing strategy because the company is targeting the ultra-premium niche market segment [12].

The distribution channels and promotions are entirely focused on delivering the manufactured cars to the end customers [10]. There are 9 significant showrooms that directly deliver the customers their desired products. Apart from the brick and mortar stores the lucid motors also operates its official website to get appropriate reservations from customers and deliver them the particular products in different locations based on their physical locations and customer convenience [13].

The promotional activities considered while lucid motors and entirely based on advertisements through magazines and newspapers where the products are directly introduced to the customers with significant details about the particular product. Advertisement also considered significant levels of usp details that help in attracting the customers more towards the introducing product [11].

It is the way products get to the end-user, the consumer; and is also known as a distribution channel.

The distribution channels and promotions are entirely focused on the following list,

· Brick and mortar stores

· Warehouses

· Official websites

 Revenue generated

 Cost of the promotion