From selling cars to selling mobility: Servitization and electrification in the automotive sector

Increasing environmental concerns coupled with depleting oil reserves have fuelled the investment in electric (EV) and Hybrid electric (HEV) vehicles. While slowly growing, there is still very low market adaptation for these vehicles. Consequently, innovative mobility services business models (e.g. carsharing) that were initially developed due to excessive traffic congestion within major urban cities, have been identified as a channel to aid in fleet electrification. Despite the growing popularity of non-ownership mobility services business models, a large majority of the population adhere to traditional ownership and leasing models. Hence, service providers need to re-invent their business models to make them more attractive to users and break the adaptation barriers. To conduct this study, a review of past literature on both EV adaptation and use of carsharing services has been done. This has been combined with empirical data collected through interviews with stakeholders in the automotive industry (OEMs, policy makers, carsharing service providers, and charging infrastructure implementers). Additionally, a consumer survey within six European countries and focus groups within five European countries have been done.