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World Electric Vehicle Journal is published by MDPI from Volume 9 issue 1 (2018). Articles in this Issue were published by The World Electric Vehicle Association (WEVA) and its member the European Association for e-Mobility (AVERE), the Electric Drive Transportation Association (EDTA), and the Electric Vehicle Association of Asia Pacific (EVAAP). They are hosted by MDPI on mdpi.com as a courtesy and upon agreement with AVERE.
Open AccessArticle

EV/PHEV – CHANGING REVENUE & PROFIT POOLS IN THE AUTOMOTIVE VALUE CHAIN REQUIRE NEW BUSINESS MODELS

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Roland Berger Strategy Consultants GmbH, 80807 Munich, Germany
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Roland Berger (Shanghai) Ltd., Shanghai 200040, P.R. China
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Author to whom correspondence should be addressed.
World Electr. Veh. J. 2010, 4(1), 104-109; https://doi.org/10.3390/wevj4010104
Published: 26 March 2010
OEMs need to take action to cope with the changes brought about by the shift to the electric powertrain. As EVs gain market share, revenue pools along the value chain will change significantly. Higher battery costs, decreased fuel and energy revenues, less aftermarket potential, increased variabilization of costs, more value-added services and additional revenues from recycling are all factors affecting revenue and profit pools. To adapt to these changes, OEMs need to proactively secure their future business. They can capture value in new EV components, make leasing/service their main sales channel, leverage lower variable costs or explore recycling. There is tremendous potential for suppliers of components for the new electrified powertrain. OEMs will assume a large portion of the additional value-added especially at first, but this will decline as specialization rises. The expected growth in EV and PHEV depends heavily on driving down battery costs. Even if these costs are successfully lowered, electric vehicles will still cost significantly more than vehicles with internal combustion engines. However, not enough customers are willing to pay the difference, at least in a traditional purchase. Yet viable alternatives exist if they are marketed correctly. New and existing services can be bundled into attractive mobility-oriented packages for the customer. These packages, plus partnerships with public transit providers, mean that OEMs will be acting increasingly as general mobility providers. All these changes mean that OEMs need new business models for the growing but highly competitive EV market.
Keywords: Electric vehicles; batteries; market potential; mobility services; new business models Electric vehicles; batteries; market potential; mobility services; new business models
MDPI and ACS Style

Bernhart, W.; Zhang, J.; Wagenleitner, J. EV/PHEV – CHANGING REVENUE & PROFIT POOLS IN THE AUTOMOTIVE VALUE CHAIN REQUIRE NEW BUSINESS MODELS. World Electr. Veh. J. 2010, 4, 104-109.

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