University of Oulu

Developing new business model in case of pure electric bus (PEB) in China

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Author: Wang, Fan1
Organizations: 1University of Oulu, Oulu Business School, Department of Management and International Business, International Business
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 2.3 MB)
Pages: 77
Persistent link:
Language: English
Published: Oulu : F. Wang, 2015
Publish Date: 2015-05-25
Thesis type: Master's thesis
Tutor: Mainela, Tuija
Reviewer: Mainela, Tuija
Myllykoski, Jenni
This thesis analyzed the environmental development of Chinese pure electric bus (PEB) industry. It indicated that the main problems which blocked the PEB promotion are the immaturity of battery technology and the lack of a suitable business model. According to current battery technology, the solution should be designing new business model for PEB then gradually enhance PEB function. This study analyzed the original Chinese PEB business model, which was based on the three different periods for the PEB commercialization roadmap. The main characteristic of Chinese PEB original business model is that the public transport company operates independently during the whole PEB life cycling, including PEB purchasing, operation, maintenance and disposal. Such structure would cause problems, such as: higher purchasing cost, the second purchasing for the power batteries, state subsidies do not form an effective incentive for comprehensive benefits, and PEB driving range cannot meet the actual capacity needs. Such problems are the main reasons to block Chinese PEB promotion. To solve the issue of the original Chinese PEB business model, a new business model is designed with the separation purchasing between vehicle and battery. The public transport companies should purchase only the vehicle without the battery included. As previously, the charging infrastructure would be constructed from the fund by the National Grid (Energy Company). Furthermore the National Grid would also lease the battery from the battery manufacturers with unified battery management. The public transport companies could then replace the battery according to the PEB operation needs and pay the energy company by battery usage and electrical energy cost. It is also recommended to have the original optimized program under the new business model structure, which includes subsidy program, financial program, and the whole vehicle purchasing mechanism. The new business model went through the pure electric bus (PEB) value network analysis and was assessed as reasonable with the value creation activity flow. The new business model suggests several proposals for the vehicle design, the PEB charging, PEB operation, PEB marketing, PEB service and PEB recycling aspects. All these proposals were implemented to the Tianjin bus line 638 in real market case. The comprehensive PEB benefits concern three aspects: economical, social and environmental. In addition, the enterprises from whole PEB industry value chain were evaluated for their own benefit effects. These evaluations constructed the whole PEB implementation appraisal system. The evaluation results showed that under new business model, the benefits for PEB in economic, social and environmental perspectives are higher than the ones under the original business model. The new business model would inject new vitality to the industry value networks, which could be operated effectively and also promote the interests of all stakeholders by benefited from the industry networks. A win-win situation can be achieved.
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