Arthur D. Little: Electro-mobility players must do more to develop business models

In the current automotive crisis, everyone is plugging into electro-mobility. However, little focus is placed upon developing adequate business models. According to “Winning on the E-mobility Playing Field”, the latest automotive Viewpoint from global management consultancy Arthur D. Little, OEMs, utilities, infrastructure, leasing companies and service providers will all be competing for consumers’ mobility budgets and must identify the right business model to fully capitalise on the green market. All players in the value chain face a key question – which e-mobility business models are viable? Arthur D. Little believes four predominant business models will emerge: i). The Mega-OEM.  Traditional and emerging OEMs will compete for technology leadership. Only a select few are likely to lead, with their products being used under different brands as an increasing number of smaller OEMs realize they are unable to bear the cost of developing their own electric vehicles. ii). The “Intel inside” approach.  Some large Tier 1 suppliers will establish de-facto standards, offering OEMs a complete modular package of electric vehicle technology – from battery and power electronics to complete vehicle architectures – where only the interior and exterior styling will be different. iii). City mobility shop.  With regulations likely to spread in big cities, local authorities will cooperate with automotive OEMs to develop ‘clean’ transport alternatives such as electro-mobility. iv). E-mobility provider. Rail, aviation, car rental businesses and new entrant service providers will actively seek opportunities to increase their share of affluent travelers’ mobility budgets. Their presence in major travel hubs worldwide will enable them to implement an electric vehicle infrastructure capturing this lucrative customer market. Stefan Lippautz, Director at Arthur D. Little believes that success in the upcoming electro-mobility market requires more than “new” technology development. “Competition in e-mobility exists on a wider playing field beyond the traditional automotive value chain. Focusing on selected customer groups will help achieve a unique selling proposition. Companies should tailor mobility products, focusing on viable business models for a small target group rather than targeting the entire market.”  “Winning on the E-mobility Playing Field” is available to download at

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