This paper aims to provide product design recommendations for electric vehicle supply chains (EVSCs) to improve market penetration in cold regions amidst growing market competition.
Based on two green product design approaches, we propose two electric vehicle (EV) designs with distinct cost structures: power battery expansion (Scheme N) and cold-resistance R&D (Scheme R). From a product design perspective, we consider the characteristics of the EVSC and use game theory to develop a dual oligopoly supply chain (SC) model under joint competition in price and range. By introducing range as a decision variable, we comprehensively analyze the effects of range anxiety, low temperature coefficients, production and R&D capabilities and competitive intensities on optimal solutions for firms.
The findings of the study are as follows: (1) the applicability and advantages of Scheme R increase as the gap between joint competition intensities narrows. High levels of range competition are consistently detrimental to the EVSC, as they hinder improvements in EV range and may reduce profits when consumer range anxiety is mitigated. (2) R&D capability significantly influences the choice of the optimal scheme. Scheme N should be selected only when R&D capabilities are limited and optimal cold-resistance performance is low. Unexpectedly, in colder temperatures with higher consumer anxiety, consumers tend to prefer purchasing EVs under Scheme N.
This study extends the green SC research by incorporating the specific needs of EVSCs and exploring the competitive dynamics of products with different structural approaches within the same market.
