How has the Battery Electric Vehicle Transformed Car-OEM's Business Models?

Due to new regulations and growing environmental concerns, the market segment of battery electric vehicles (BEVs) shows high potential and growth rates. To overcome the technological inferiority of BEVs and offer a surplus value, automotive Original Equipment Manufacturers (OEMs) consider making adaptations and changes on their current business models. This paper contributes towards the understanding of business model innovation in relation to technology innovation and electric mobility. It empirically investigates how the value proposition, value creation and value capture of the case enterprise BMW has been reconfigured in order to stay competitive in both, the electric and the conventional car segment. The findings of the study highlight the relevance of additional services. Moreover, results reveal the benefits of leasing in conjunction with BEVs. Further, modular construction approaches for electric vehicles could hold benefits in terms of value creation due to an increased flexibility and scalability in production.