109 / 2024-04-20 11:51:00

Powering Electric Mobility: Battery Leasing Service Viability and Service Provider Selection

Electric vehicles, Battery leasing service, Recycling, Service provider selection

The popularity of electric vehicles (EVs) is increasing due to their environmental advantages. However, the capital intensity of batteries prevents them from having a competitive edge compared to same-size petrol cars. Therefore, EV manufacturers propose battery leasing services to reduce consumers' upfront costs. This study focuses on a two-tier supply chain composed of an EV manufacturer and a battery supplier, considering two battery leasing service models: (1) EV manufacturers providing battery leasing services; (2) battery suppliers providing battery leasing services. We discuss the significance of battery leasing services for the promotion of EVs and the impact of service provider selection on supply chain members. The research indicates that battery leasing services are beneficial for the promotion of EVs, and promotion is most effective when battery leasing services are provided by suppliers. For manufacturers, the main factors influencing whether they choose to cooperate with battery suppliers to provide battery leasing services are consumers' perceived value of battery usage rights and EV body net benefit. Additionally, we introduce a third-party recycling platform in the expansion section to explore the impact of battery recycling behavior on battery leasing service strategies, finding that when battery costs are high, there is a possibility that manufacturer-provided battery leasing services may not attract more consumers to enter the EV market.