The market case for electric mobility: investigating electric vehicle business models for mass adoption

Zarazua de Rubens, Gerardo, Noel, Lance, Kester, Johannes and Sovacool, Benjamin K (2019) The market case for electric mobility: investigating electric vehicle business models for mass adoption. Energy. a116841. ISSN 0360-5442

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Electric vehicles (EVs) could become the next automotive technology to be widely diffused in society in the near future. However, many structural challenges remain to be addressed around the EV socio-technical system as the technology progresses from a niche to early and late mass markets. This study investigates the challenges for electric vehicles focusing on their current and future business implications. For this purpose, we rely on a robust sample of 227 semi-structured interviews, conducted by the authors, with transportation and electricity experts from 201 institutions across seventeen cities in Denmark, Finland, Iceland, Norway, and Sweden. Our findings show that EVs currently face an unfavourable business case, led by the legacy of the petrol and diesel car industries, and national market conditions. This results in an unsuitable business model and supply chain that compromises EV production and market offerings. Additionally, we find that for wide diffusion in society, EVs will change the traditional automotive selling chain, directly affecting selling methods (i.e. dealerships), maintenance revenue streams and refuelling (recharging) structures. It is therefore essential to adopt new models, practices and methods of business that are suitable for EV diffusion.

Item Type: Article
Keywords: electric vehicle, business, adoption, charging infrastructure, profitability
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Depositing User: Francisco Dominguez
Date Deposited: 03 Jan 2020 08:30
Last Modified: 31 Dec 2020 02:00

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