Power of E-Motion Business Model Innovation for the Introduction of Electric Cars to China

Acknowledgements Being the last part of our masters studies we have been working and investigating in a truly interesting field over the last month. During our research in the area of Business Model Innovation in the automobile industry with a special focus on China, we could not only gain new knowledge but also learned to value perseverance and diligence as a way to conduct our work. We hope that our thesis will serve as a handbook for business model innovation when considering introducing E-Cars to China and will be of enjoyment to any potential reader. The biggest thank-you goes to our supervisor Mike Danilovic and our examiner Maya Hoveskog for their critical and honest feedback, engagement, support and discussion rounds which helped us during our research process. In addition, we would like to thank Tiantian Qi, Business Manager – Auto Components Working Group, Retail and Distribution Forum and Corporate Social Responsibility Forum of the European Union Chamber of Commerce in China for the valuable information she supplied about the Chinese car industry. Moreover, we would like to thank our opponents for their effort in reviewing our paper and challenging us with critical questions. Finally, a special thanks is given to our friends and families who supported and encouraged us during our studies. Abstract II Abstract E-Cars challenge prevailing business practices, especially in industrial sectors that heavily depend on the use of fossil fuels such as the automobile industry. The sustainable powertrain has to fight against prejudices towards a lack of performance, long charging times, the fear of too short driving ranges and a long list of other concerns. However, hazardous environmental pollution in Chinese megacities as well as changes among the consumers' mindsets and purchasing behavior claim for a change in the product portfolios of today´s car manufacturers. In the western world we can see a successive (although hesitant) penetration of the markets by E-Cars. However, the Chinese market is still almost untouched and car manufacturers have just started to show the first signs of action. This phenomenon is mainly based on differences among the markets, especially the customer segment, partnerships and the proposition of value in China differ compared to the western markets. Furthermore, there are dissimilarities between China and the western car markets when it comes to political, legal and social aspects. To successfully introduce E-Cars to China, car manufacturers have to develop business models that transform the …