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Business Model Innovation for Electric Vehicles

The BeliEVe project is aiming to create new business models that can make it possible for electric vehicles to reach a broad breakthrough. In the project, four potential such business models were identified: All-electric car leasing chain, Plug-in cars as company cars, Free-floating all electric city cars and All-electric car subscription.

Challenge

Electric vehicles are an important part of sustainable passenger transportation of the future. But unfortunately many people still associate electric vehicles with high prices, uncertainties about life-span of batteries and a concern that the electric vehicle will not be able to fulfill the needs of a regular car user. This makes it hard for the electric vehicle, despite its low running cost and potential environmental advantage, to compete with traditional cars when it is time for the family to buy a new car. 

But is private car ownership really the solution for future personal transportation needs? Privately owned cars are mostly parked, up to 90 % of the time, and if all costs of ownership are summed up the cost per driven kilometer is very high. In urban regions car ownership also becomes more and more troublesome as the availability of parking space for privately owned cars is steadily decreasing. Maybe it is time to rethink and try to find alternatives to the traditional business models’ way to provide personal mobility with cars? This is exactly what this project is about.

Aim and Goal

The project has been given the name BeliEVe (Business model innovation for Electric Vehicles) and it is aiming to create new business models that can make it possible for electric vehicles to reach a broad breakthrough. The first project started in 2011 with a follow-up in 2014.

In the BeliEVe project, we have focused upon 4 different business models that have the potential to significantly boost the electric vehicle market i Sweden:

  1. All-electric car leasing chain
  2. Plug-in cars as company cars
  3. Free-floating all electric city cars
  4. All-electric car subscription

Solution and effect

In the second project, the 2nd of these, Plug-in cars as company cars, was studied in detail. Company cars represent a considerable share of the total new cars sales on the Swedish market. If electric cars could become attractive within this segment that could be an important contribution to a fast commercialization of electric cars in Sweden.

Electric cars as company cars were evaluated from three different perspectives; the employer’s perspective, the employee’s perspective and also from a business perspective for the leasing company and the car manufacturers.

The project showed that when electric cars of ”company car type” become available for choice, they will be chosen. Main contributing factors are switching to a TCO model and assigning a coordinator for the complete offer, including charging possibilities.

Summary

Project name

BeliEVe

Status

Completed

RISE role in project

Coordinator

Project start

Duration

6.5 years

Partner

Ericsson, Autolease, DNB Bank

Funders

Swedish Energy Agency

Project members

Events

Supports the UN sustainability goals

11. Sustainable cities and communities
Stefan Pettersson

Contact person

Stefan Pettersson

Enhetschef

Read more about Stefan

Contact Stefan

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