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“Separation of Vehicle and Battery” of Private Electric Vehicles and Customer Delivered Value: Based on the Attempt of 2 Chinese EV Companies

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Listed:
  • Shuxia Yang

    (Beijing Key Laboratory of New Energy and Low-Carbon Development (North China Electric Power University), Beijing 102206, China)

  • Ruoyang Li

    (State grid Beijing Electric Power Company, Beijing 100054, China)

  • Jialin Li

    (Energy policy research center, Beijing University of Technology, Beijing 100124, China)

Abstract

Electric vehicles are an effective tool to reduce vehicle born emissions from road transportation. Faced with major pollution issues, China is committed to vigorously promoting electric vehicles. China has made active efforts in subsidies, policies, charging facilities, business models, etc., so that the annual growth rate of electric vehicle sales has accelerated. State subsidies have greatly promoted the use of electric vehicles, but the government is gradually reducing subsidies. In the case of government subsidy decline or even zero subsidy, “separation of vehicle and battery” is considered to be a good mode for solving the development of private EVs. The battery of an electric vehicle does not form a whole with the chassis, but they could be physically separated, replacing the battery with one which is fully charged instead of charging by users themselves, substituting battery leases for battery purchases, called separation of vehicle and battery. However, a series of issues such as whether this mode is beneficial to consumers, whether it has competitive advantages for vehicle companies, and what difficulties exist need to be further studied. This paper firstly analyzes whether it is necessary to implement “separation of vehicle and battery” for private electric vehicles (SEPARATION) in China. Based on this, it sums up the attempts of two companies to implement SEPARATION and extracts the key factors involved in SEPARATION. Then, such key factors are analyzed, and the customer delivered value model of SEPARATION is established. Finally, this article discusses the predicament of SEPARATION and makes some recommendations for the implementation of SEPARATION in China. The innovations in this paper include: (1) Analyzing the issue of SEPARATION from the perspective of customer delivered value. (2) Proposing a customer delivered value model of SEPARATION for the first time. (3) Proposing a two-level battery replacement network in the SEPARATION mode.

Suggested Citation

  • Shuxia Yang & Ruoyang Li & Jialin Li, 2020. "“Separation of Vehicle and Battery” of Private Electric Vehicles and Customer Delivered Value: Based on the Attempt of 2 Chinese EV Companies," Sustainability, MDPI, vol. 12(5), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:2042-:d:329426
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    References listed on IDEAS

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    1. Shuxia Yang & Di Zhang & Jing Fu & Shujing Fan & Yu Ji, 2018. "Market Cultivation of Electric Vehicles in China: A Survey Based on Consumer Behavior," Sustainability, MDPI, vol. 10(11), pages 1-23, November.
    2. Morrissey, Patrick & Weldon, Peter & O’Mahony, Margaret, 2016. "Future standard and fast charging infrastructure planning: An analysis of electric vehicle charging behaviour," Energy Policy, Elsevier, vol. 89(C), pages 257-270.
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    Cited by:

    1. LaMonaca, Sarah & Ryan, Lisa, 2022. "The state of play in electric vehicle charging services – A review of infrastructure provision, players, and policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    2. Arne Jeppe & Heike Proff & Max Eickhoff, 2023. "Economic Potentials of Ecologically Attractive Multi-Life Products—The Example of Lithium-Ion Batteries," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    3. Guohao Li & Tao Wang, 2022. "Long-Term Leases vs. One-Off Purchases: Game Analysis on Battery Swapping Mode Considering Cascade Utilization and Power Structure," Sustainability, MDPI, vol. 14(24), pages 1-28, December.

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