Issue: Dec 2009


New Business Models for Electric Vehicles: Perspectives from GM, PSA and Think's Senior Executives



Frost & Sullivan to Host Analyst Briefing on Innovative Business Models for Electric Vehicles on Thursday, 17 December, 2009 at 3:00 pm GMT

by Michael Pavey

With current battery costs for electric vehicles ranging from 650 to 800 USD per kwh, the battery for a 25 KW electric car can easily cost as much as the car itself. Therefore, to attract new customers, OEMs should offer a unique package that encompasses the total cost of ownership of a vehicle over a period of at least 3 to 5 years. In fact, the automotive industry will likely take inspiration from the telecoms industry, adopting business models based on monthly tariffs and flexible contracts. Frost & Sullivan predicts that three out of four electric vehicle sales will rely on such innovative models in the future.

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To provide unique insights into these new business models and to examine the role of the Integrator (an organization that manages the diverse service offering to customers through strategic partnerships with various industry players), the Automotive & Transportation Group at Frost & Sullivan (http://www.transportation.frost.com/) is pleased to announce that it will be hosting an online analyst briefing presentation on Thursday, 17 December, 2009 at 3:00 pm GMT. This briefing will be chaired by the senior executives managing GM (tentative), Think and PSA's Electric Vehicle programs.

By examining the various opportunities and implications these new business models introduce, this briefing will benefit vehicle manufacturers, infrastructure companies, dealerships, utilities, suppliers, government policy makers as well as the financial community.

"Electric vehicles provide OEMs with the opportunity to develop a new value proposition around the packaging and pricing of these vehicles as a through life support to customers," says Sarwant Singh, Frost & Sullivan Global Partner and Automotive & Transportation Practice Director. "In so doing, they generate new revenue stream for themselves which can be more profitable than just selling vehicles. This is a unique opportunity and will need strong partnerships with the industry stakeholders and can provide healthy ROI."

To participate in this briefing, please email Monika Kwiecinska at monika.kwiecinska@frost.com with: your full name, company name, title, telephone number, e-mail, address, city, state and country and a registration link will be e-mailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com/.

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