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Purpose – Electric vehicles are very topical in developed countries. The breakthrough of new battery technologies and changing conditions driven by climate policy and growing fossil fuel prices has caused all major car manufacturing countries in the developed world to initiate R&D programmes to gain competitive advantage and to foster market diffusion of electric vehicles (EVs). This chapter looks at developments in China and compares them with observations from developed countries to draw conclusions about differences in their future paths of development.

Methodology – This chapter escribes the potentials and R&D approaches for different types of EVs in developing countries, using China as example, in comparison with developed countries. It looks at innovation strategies, policy framework and potential diffusion of EVs.

Findings – Market diffusion strategies in developed countries and China may differ, since, in the former manufacturers try to implement a premium strategy (i.e. offer high-price sophisticated EVs), while in the latter market, diffusion will probably appear at the lower end of vehicle types, i.e. via electric scooters and small urban vehicles. It is concluded that the market introduction strategies of EVs in developing countries and developed countries could converge because signs of downsizing of vehicles can be observed in the developed world, while upscaling from bikes and electric scooters can be expected for China, so that large-scale market introduction could occur via small city cars.

Implications for China – Instead of following the Western motorisation path, an option for China could be to develop a new one-stop-shop mobility concept integrating small EVs into such a concept.

The Indian government has set an ambitious target for reducing the import of fossil fuels by 10% and introducing an all-electric car fleet by 2030. The Government of India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013 to promote Electric Vehicles (EVs) in India with the objective of providing incentives for use of EVs; encouraging research & development in the areas of battery technology, system integration, testing infrastructure; and promoting charging infrastructure. The Indian government is also working on a scheme by which an electric car can be purchased free of cost: zero down payments, and monthly payments out of savings on the cost of petrol. It is envisaged that sooner or later, e-vehicles will transform the automobile market and provide environmental sustainability to the society. Political stability to provide stable policies is expected to play a key role in driving the growth of such vehicles. So far, preliminary research has been undertaken on perception of Indian Society on EVs. Based on empirical research, this paper attempts to address the gap. A study was conducted from November 2016 to April 2017 in Delhi-NCR with a sample size of 220 professionals working in manufacturing and service industry to understand the upcoming green transport facilities and their perceived environmental benefits as perceived by the residents of the society. Convenience sampling was used to collect the data. The Study highlighted that the design and utility of the EVs need to be reshaped so that it can compete with the gasoline vehicles in the current environment. Almost 95% of the respondents are ready to pay a premium for new technology or EVs. The study revealed that infusion of capital support and government subsidies can play a key role in acquiring new customers and establishing the market for EVs in the Indian market. The results show that there is a need to enhance awareness of NEMMP scheme within the society so that the EV market share can be increased. The results highlight that with availability of options, society will use the transport system which is environment friendly.

The dominance of road transport, both on passenger and freight movements, has reached alarming levels in what concerns their negative environmental impacts as well as societal and economic costs. To reverse this trend, a technology-driven approach and a behavioral change attitude need to be pursued. Promising results have been reported in Europe in the reduction of vehicle ownership, due to the introduction of an alternative transport mode known as car sharing. This work evaluates the contribution of car sharing to sustainable transport, based both in a technological shift and a potential behavioral change.

The state of the art on car sharing and policies presents the effects of these systems and how they have been promoted. As those effects can vary according to the geographical area, the users profile, and service characteristics, a worldwide analysis on car sharing systems covering more than 400 cities was performed. Average service indicators were quantified and characterization variables were accounted to those cities’ urban areas. Considering those normalized values, the authors performed an analysis of the car sharing system in Lisbon (Portugal). An initial assessment was made to estimate its current energy and environmental impacts. This outcome was then compared with the environmental and economic effects of using alternative vehicle technologies in car sharing. The results obtained enable a discussion of the more important variables for the success of the system and, consequently, to choose what policy instruments can help car sharing to succeed.

The results of the existing car sharing schemes reveal the positive contribution of car sharing to fill a “mobility gap” in sustainable transport. It works as a complement to other sustainable transport options and it impacts positively both society and car-sharers in terms of mobility costs, environmental, and energy implications. These results are more significant if a technology shift to electric mobility is promoted. Within the case study in Lisbon, the adoption of electric mobility would allow decreases up to 47% and 65% in energy consumption and CO₂ emissions, respectively. Moreover, the present value economic analysis revealed that, these systems will only be economically viable after approximately 7 years. A sensitivity analysis to the economic model was performed showing that the variables having higher influence were cost-related variables (reducing the break-even timeframe from 36% to 57%), such as vehicle purchase cost, insurance, maintenance and tax costs, and fuel cost.

Car sharing systems generally present social benefits to society as it leads to the reduction of car ownership, with all the positive effects that has on a lower demand for parking space, less congestion, reduced local pollutants and emissions. If the technology used by car sharing vehicles shifts from conventional to another type of technology, the effects both for society and car sharers are even more appealing from a social point of view. In the particular case study approached in the chapter, given the small scale of the car sharing network and low usage patterns, the local results have a low social impact at the city scale. A larger promotion of the system either with a more aggressive marketing campaign targeting specific population niches (e.g., environmentally conscious people), larger vehicle and parking availability, or better integration with the city’s public transport system could foster the deployment of the system, similarly to other cities.

Overall, the results obtained from this research work quantify the contribution of car sharing to sustainable transport and highlights the positive effects of promoting a technological shift. These facts reinforce the need for public policies to support the integration of car sharing within the city’s solutions to promote a more sustainable mobility. The successful deployment of car sharing systems can be influenced by policies targeting features such as allocation of parking, the fees and complementarity with public transport, signage and markings, and marketing of social and environmental benefits.

The search for flexible models has led the simple multinomial logit model to evolve into the powerful but computationally very demanding mixed multinomial logit (MMNL) model. That flexibility search lead to discrete choice hybrid choice models (HCMs) formulations that explicitly incorporate psychological factors affecting decision making in order to enhance the behavioral representation of the choice process. It expands on standard choice models by including attitudes, opinions, and perceptions as psychometric latent variables.

In this paper we describe the classical estimation technique for a simulated maximum likelihood (SML) solution of the HCM. To show its feasibility, we apply it to data of stated personal vehicle choices made by Canadian consumers when faced with technological innovations.

We then go beyond classical methods, and estimate the HCM using a hierarchical Bayesian approach that exploits HCM Gibbs sampling considering both a probit and a MMNL discrete choice kernel. We then carry out a Monte Carlo experiment to test how the HCM Gibbs sampler works in practice. To our knowledge, this is the first practical application of HCM Bayesian estimation.

We show that although HCM joint estimation requires the evaluation of complex multi-dimensional integrals, SML can be successfully implemented. The HCM framework not only proves to be capable of introducing latent variables, but also makes it possible to tackle the problem of measurement errors in variables in a very natural way. We also show that working with Bayesian methods has the potential to break down the complexity of classical estimation.

Sustainable innovation is not only about the design of radical “green” technologies, it is also about generating social and institutional support that complement and reinforce the adoption and diffusion of these technologies at large. Hence, treating the ecologically hazardous nature of the prevalent technologies alone is insufficient without complementary social change. Building on a longitudinal study of sustainable innovation in the car industry, we argue that the prevailing discourse that is centered on the creation of business value is unlikely to facilitate the widespread adoption of sustainable technologies. Furthermore, taking into consideration the sociomateriality of sustainable innovation, we rather suggest that a focus on creating social value is indispensable for triggering the desired change toward sustainable value. Following the analysis of sustainable innovation in the car industry, we generate two relevant insights for sustainable value. First, our results demonstrate the path-dependent nature of sustainable innovation, which is constrained and sustained by the materiality, social structures, and institutional frameworks that comprise the overall sociotechnical system in which innovation takes place. Second, our findings show that a successful diffusion of radical sustainable innovation requires both technological innovation and complementary social changes that together can disrupt the existing evolutionary path of technology and construct more sustainable alternatives. All in all, we argue that reframing the discourse around social value in lieu of monetary value can be leveraged by organizations for shaping alternative courses of action, creating innovative technologies, and developing novel practices that create sustainable value for all stakeholders in society.

Introduction: Cost competitiveness, customer focus, and sustainability compliance are essential for new-age firms to survive and succeed in the VUCA market environment. This study examines how automobile corporations have improved cost competitiveness, productivity, and product quality.

Purpose: This study examines the importance of cost competitiveness, customer focus, and sustainability compliance for the long-term survival of organisations in VUCA markets, looking at the practical efforts made by automobile corporations to enhance cost competitiveness, productivity, and quality.

Methodology: The study utilises a comprehensive analysis of the strategies and initiatives implemented by the selected automobile companies. It involves a review of relevant literature, case studies, financial data analysis, and interviews with key industry experts, providing a holistic understanding of the actions taken by these organisations to achieve their goals.

Findings: The study reveals that cost competitiveness, customer focus, and sustainability compliance are critical factors for the long-term survival and success of organisations in the automotive industry. The analysed automobile companies have undertaken practical efforts to improve cost competitiveness, enhance productivity, and ensure high-quality products, enabling them to navigate the challenges and maintain a competitive edge.

Significance: The findings of this study contribute to a deeper understanding of the importance of cost competitiveness, customer focus, and sustainability compliance in the automotive industry. It highlights the need for organisations to constantly monitor both qualitative and quantitative profit to avoid complacency and ensure long-term efficiency. The study’s insights are relevant to businesses operating in other sectors, as they face similar challenges in the VUCA market environment.