World Electric Vehicle Journal (Aug 2023)
How to Choose the Refueling of New Energy Vehicles under Swapping vs. Charging Mode: From the Consumers’ Perspective
Abstract
Battery charging mode (CM) is a prevalent method of trans-shipping power to new energy vehicles (NEVs). Unfortunately, due to the limited capacity of batteries, typical NEVs can only travel for approximately 350 miles on a single charge and require hours to be recharged. Battery swapping mode (SM), as a novel alternative, can offer an ideal solution by exchanging depleted batteries for recharged ones at swapping stations in the middle of long trips, inevitably influencing potential consumers’ purchase behaviors. To examine the impact of SM and CM on consumers’ purchase intention, this paper examines a duopolistic market consisting of two new energy vehicle manufacturers (i.e., a NEV-SM manufacturer and a NEV-CM manufacturer), who adopt SM and CM to service consumers, respectively. Considering SM is characterized by low initial investment and ease of use for consumers, NEV-CM manufacturers capitalize on extended battery warranty services in response to rivals’ utilization of SM. Thereby, non-cooperative game models are formulated, in which government subsidies are taken into account. The optimal production decision for both the NEV-SM manufacturer and the NEV-CM manufacturer are analyzed under three scenarios: without extended warranty service, with extended warranty service, and with extended warranty service and subsidy. The results show that the two manufacturers’ market dominance relies on the ratio of the swapping station’s convenience to the extended warranty service and the valuation incremental rate. Additionally, we also find that the government subsidy can dramatically improve the NEV-SM manufacturer’s performance at the initial stage, but if the subsidy is insufficient in size at the subsequent stage, this will lead to policy failure and inefficiency in propelling the diffusion of swapping mode.
Keywords
