Automotive Breakfast Club

EV Commercial Compass – Revenue and Price Model
08:30 a.m. CET


Well before the COVID-19 crisis, the automotive industry had entered a turbulent phase of structural changes. One of the main aspects of this transformation is vehicle electrification, and the pace at which the change is occurring is accelerating.

While new car registrations in Europe plummeted in the first half of 2020, EV sales have increased in both market share and absolute terms. Although government subsidies and the customer profile may explain this growth (e.g. EV buyers tend to be wealthier), the EV segment is now well established in the market.

This session focuses on the main revenue management implications for car manufacturers and their immediate and long-term impact. The topics covered are relevant for all automotive players, from EV specialists currently entering the market to historical OEMs migrating from conventional engines to electric powertrains:

This webcast will address the following questions:

  • Revenue sources: What are the future sources of business (e.g. vehicle vs. wallbox, battery leasing, data monetization)? How can automotive players offset expected loss in aftersales revenue?
  • Pricing model: How can conflicts between high battery costs and willingness to pay be mitigated? What other promising alternative models are there besides the recently popular ones (e.g. subscription, battery leasing)? How to handle loss in residual value?
  • Portfolio strategy: How big is the accessible market? How is it expected to evolve in the future? What are the implications for target segments and offer structure, including item preferences (e.g. safety and assistance vs. digital entertainment)?

The session will be structured as follows:

  • Simon-Kucher presentation (30 minutes)
  • Q&A (15 minutes)

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