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Above is The Strategy Story Analysis and Research on Business Model Innovation in Electric Vehicles
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- To meet CAFÉ regulations, cleaner fuel products have to be inducted into the product portfolio. (P-3)
- Electric Vehicle product strategy would depend upon the evolution of CO2 norms, Petrol Vs Diesel product ratio, sales volumes of a model, TCO for the customer, & scale of economies. (P-4)
- Electric Vehicles are currently government-driven than customer-driven. The higher initial purchasing cost is making the adoption slower along with other factors such as charging infrastructure etc. TCO parity covers in 6-10 years depending on fuel i.e. petrol or diesel. (P-5 & 6)
- To Develop an Electric Vehicle portfolio despite low demand, OEMs have to invest high on CAPEX, putting financial stress on OEMs. ROC is lower the cost of capital. (P-7)
- To reduce TCO for a customer and create additional revenue streams, OEMs need to transform themselves into the service organization from a product organization. (P-8)
- Starting from a short-term solution such as car-leasing, OEMs need to go for long-term solutions by having JVs or developing own solutions such as battery 2nd life or ride-hailing platforms. (P-9)
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