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China's new energy vehicles: value and innovation

Author

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  • Chris Kimble

    () (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier, Euromed Marseille - École de management - Association Euromed Management - Marseille)

  • Hua Wang

    (Euromed Marseille - École de management - Association Euromed Management - Marseille)

Abstract

Purpose The overarching theme is the importance of innovations that are created within the emerging economies. More specifically, the article looks at the development of various alternatives to vehicles powered by the internal combustion engine, new energy vehicles (NEVs) within China. Design/methodology/approach The broad strategic approach of two sectors within the NEV sector in China, the pure electric vehicle (EV) and the low-speed electric vehicle (LSEV) sectors, are compared using recent data and conclusions are drawn. Findings The EV sector is viewed by the central government as a key sector for China's future industrial growth and is heavily supported. In contrast, the LSEV sector receives no support from central government and yet clearly outstrips the sales of EVs. The article argues that the latter's success is a reflection of the LSEV sector's focus on business model rather than technological innovation. Practical implications The article highlights the importance of monitoring innovations that come from within emerging economies and also illustrates the benefits that can come from commercially focused innovations rather than those based on technology. Social implications Finding alternatives to vehicles powered by fossil fuels is one of the most important challenges facing the world today. This article looks at the search for one alternative and examines its implications. What is original/of value? The article examines a business sector that is peculiarly Chinese and yet has potential implications far beyond China. It also contains recent sales figures and other data collected directly from sources in China.

Suggested Citation

  • Chris Kimble & Hua Wang, 2013. "China's new energy vehicles: value and innovation," Post-Print halshs-00859484, HAL.
  • Handle: RePEc:hal:journl:halshs-00859484
    DOI: 10.1108/02756661311310413
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00859484
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00859484/document
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    References listed on IDEAS

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    1. Chris Kimble & Hua Wang, 2010. "Low-cost strategy through product architecture: lessons from China," Post-Print halshs-00487368, HAL.
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    Cited by:

    1. Niu, Shuwen & Liu, Yiyue & Ding, Yongxia & Qu, Wei, 2016. "China׳s energy systems transformation and emissions peak," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 782-795.
    2. Wells, Peter & Lin, Xiao, 2015. "Spontaneous emergence versus technology management in sustainable mobility transitions: Electric bicycles in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 371-383.

    More about this item

    Keywords

    Business models; China; Electric vehicles; Emergent strategy; Emerging economies; Innovation; New energy vehicles;

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